Faysal Bank Limited’s overall profits for the half year ended on June 30th 2018 suffered a drop of 15.7% mainly due to increased administrative expenses. The profits decreased from Rs.2.9 billion during the half year ended June 30th 2017 to Rs.2.4 billion.
The company’s Board of Directors conducted a meeting on August 27, 2018 to discuss its financial earnings for the period.
Although Faysal Bank’s net mark-up/interest income after provisions rose by 3.74, its total non-mark-up/interest income reduced by almost 3%.
Moreover, the company’s administrative expenses shot up by almost 13%, leading to a 13% increase in total non-mark-up/interest expenses.
Apart from this, earnings per shares (basic and diluted) are reported to have reduced from Rs.2.17 per share to Rs.1.59 per share.
| Profit and Loss Account for the Half year ended June 30th 2018 ('000 Rupees) | |||
|---|---|---|---|
| Jun-18 | Jun-17 | % Change | |
| Mark-up/return/interest earned | 15,309,144 | 14,181,995 | 7.95% |
| Mark-up/return/interest expenses | 8,097,960 | 7,170,683 | 12.93% |
| Net mark-up/interest income | 7,211,184 | 7,011,312 | 2.85% |
| Reversal of provision agains non-performing loans and advances – net | (597,259) | (509,924) | 17.13% |
| Provision for consumer and small enterprise loans – general | 69,387 | 44,513 | 55.88% |
| (Reversal of provision)/provision against off balance sheet obligations | 21,581 | – | |
| (Reversal of provision)/provision for diminution in value of investments – net | (49,623) | (5,846) | 748.84% |
| Recoveries against written off debts – net | (51,133) | (53,508) | -4.44% |
| Net mark-up/interest income after provisions | 7,818,231 | 7,536,077 | 3.74% |
| Non mark-up/interest income | |||
| Fee, commission and brokerage income | 1,733,755 | 1,470,930 | 17.87% |
| Dividend income | 50,840 | 80,319 | -36.70% |
| Income from dealing in foreign currencies | 952,694 | 585,118 | 62.82% |
| Gain on sale of securities – net | 174,309 | 1,030,616 | -83.09% |
| Unrealised gain/(loss) or revaluation of investments classified as held for trading – net | 2,204 | 3,342 | -34.05% |
| Other income | 310,398 | 150,067 | 106.84% |
| Total non-mark-up/interest income | 3,224,200 | 3,320,392 | -2.90% |
| Non mark-up/interest expenses | |||
| Administrative expenses | 6,658,366 | 5,896,224 | 12.93% |
| Other provisions – net | – | – | |
| Other charges | 134,551 | 100,226 | 34.25% |
| Total non-mark-up/interest expenses | 6,792,917 | 5,996,450 | 13.28% |
| Share of loss of associate | (6,196) | (17,954) | -65.49% |
| Extraordinary/unusual items | – | – | |
| Profit before taxation | 4,243,318 | 4,842,065 | -12.37% |
| Taxation | 1,832,763 | 1,982,639 | -7.56% |
| Profit after taxation | 2,410,555 | 2,859,426 | -15.70% |
| Basic and diluted earnings per share (Rupees) | 1.59 | 2.17 | -26.73% |
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