February 13, 2020 (MLN): Faysal bank Limited (FABL) has announced its consolidated financial results for the year ended December 31, 2019. As per the results, the bank has reported net earnings of Rs 6 billion (EPS: Rs 3.96), up by 24.37% against Rs 4.82 billion of the last year.
The profitability of the bank went up primarily due to higher net interest income, up by 30% YoY, as a result of solid balance sheet growth and better asset pricing.
The bank’s interest income rose 66%YoY at Rs 58 billion in CY19. However, interest expense also increased by 97% YoY, thereby curtailing growth in the bank’s net interest income (NII) to 30% YoY during CY19.
During CY19, Non-funded income (NFI) of the bank jumped up by 10% YoY mainly on account of higher fee and commission income ( up by 9% YoY), dividend income (up by 2.5 times YoY) and FX income (up by 44% YoY). However, operating expenses of the bank surged by 16% YoY, limiting the favourable impact of higher NII and NFI on the bank’s net earnings.
Other than this, the bank has disclosed the price-sensitive information that State Bank of Pakistan has granted the approval of the Capital injection of Rs 500 million by Faysal Bank Limited in Faysal Asset management limited which its 99.99% owned subsidiary.
|
Profit and Loss account for the year ended December 31st 2019 ('000 Rupees) |
|||
|---|---|---|---|
|
|
Dec-19 |
Dec-18 |
% Change |
|
Mark-up/return/interest earned |
58,398,995 |
35,201,159 |
65.90% |
|
Mark-up/return/interest expenses |
37,272,461 |
18,924,859 |
96.95% |
|
Net mark-up/interest income |
21,126,534 |
16,276,300 |
29.80% |
|
Non mark-up/interest income |
|
|
|
|
Fee and commission income |
4,228,311 |
3,878,747 |
9.01% |
|
Dividend income |
428,588 |
170,110 |
151.95% |
|
Foreign exchange income |
2,833,324 |
1,970,720 |
43.77% |
|
Income from derivatives |
175,652 |
118,641 |
48.05% |
|
(Loss)/Gain on sale of securities – net |
(565,986) |
50,627 |
– |
|
Other income |
250,759 |
434,231 |
-42.25% |
|
Total non-mark-up/interest income |
7,350,648 |
6,623,076 |
10.99% |
|
Total income |
28,477,182 |
22,899,376 |
24.36% |
|
Non mark-up/interest expenses |
|
|
|
|
operating expenses |
17,211,009 |
14,834,287 |
16.02% |
|
Workers welfare fund |
232,722 |
172,758 |
34.71% |
|
Other charges |
32,707 |
90,275 |
-63.77% |
|
Total non-mark-up/interest expenses |
17,476,438 |
15,097,320 |
15.76% |
|
Profit before provisions |
11,000,744 |
7,802,056 |
41.00% |
|
Provision/(reversal of provision) and recoveries against writeb-off debts-net |
842,257 |
(421,992) |
– |
|
Share of loss of associate |
– |
(11,804) |
|
|
Extraordinary/unusual items |
– |
– |
|
|
Profit before taxation |
10,158,487 |
8,212,244 |
23.70% |
|
Taxation |
4,154,446 |
3,384,633 |
22.74% |
|
Profit after taxation |
6,004,041 |
4,827,611 |
24.37% |
|
Basic and diluted earnings per share (Rupees) |
3.96 |
3.18 |
24.53% |
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