Faysal Bank’s profit surges 76% in 6MCY23

Faysal Bank declared a consolidated profit before tax (PBT) of Rs7.66 billion for the first half of 2023 (January-June), nearly 76% higher than the Rs4.36 billion recorded in the same period of the previous year.

As per the financial results provided to the Pakistan Stock Exchange (PSX) on Thursday, Faysal Bank announced an earning per share (EPS) of Rs5.05, as compared to EPS of Rs2.87 in SPLY.

In addition, the Board of Directors of Faysal Bank Limited announced an interim cash dividend of Re1 per share of Rs10 each i.e. 10%.

The increase in profit was led by sharp spike in profit/return earned on Islamic financing and related assets, investments and placements.

The net profit/return rose from Rs16.23 billion in 6MCY22 to Rs30.74 billion in 6MCY23, a robust increase of over 89%.

Among other income, the fee and commission income earned by Faysal Bank in 6MCY23 amounted to Rs4.5 billion, a surge of over 28% against Rs3.5 billion earned in the same period last year.

However, the dividend income of the firm lowered Rs349.6 million in 6MCY22 to Rs209.9 million in 6MCY23.

Faysal Bank’s foreign exchange income inched up by 17% from Rs1.43 billion to Rs1.67 million in 6MCY23.

The other income earned by the bank also dropped by 17% as it reduced to Rs103.98 million in 6MCY23 from Rs125.1 million in SPLY.

During 6MCY23, operating expenses of the firm amounted to Rs17.87 billion, up 45% against Rs12.33 billion in SPLY.

The firm reported a sharp hike in expenditure on worker welfare fund which almost doubled during the period. Faysal Bank spent Rs179.03 million under this head in 6MCY22 and Rs335.5 billion in 6MCY23.