Islamabad: A corporate briefing session of Faysal Bank Limited was conducted by Syed Majid Ali (Chief Financial Officer) on November 17, 2020 through video link Zoom to brief the analyst community and shareholders about the Bank’s current financial performance and its outlook.
The Bank posted profit before tax (PBT) of Rs.9,070 million and profit after tax (PAT) f Rs. 5,515 million for the nine months ended September 30, 2020, as compared to Rs. 7,475 million and Rs. 4,427 million respectively in the same period last year. Islamic banking branches contributed 35.87% of profit after tax.
Profit before provisions and taxation was reported at Rs. 11,151 million for the nine months, indicating an impressive growth of 36 percent from the level of Rs. 8,203 million for the corresponding prior period.
The Bank’s net advances portfolio stood at Rs. 310,188 million as at September 30, 2020 out of which 52% is Islamic. The deposit portfolio registered a healthy growth of Rs. 56,847 million or 12.4 percent when compared to December 31, 2019, ending at Rs. 514,636 million as at September 30, 2020.
The Bank is focused on its conversion to a full-fledged Islamic Bank by the end of 2023. CFO highlighted that the key indicators of branches, deposits, advances and profitability depicted significant progress toward conversion. There has been no major impact of COVID-19 on conversion as the Bank has converted 43 branches during 2020 and 82% of the network is now offering Sharia compliant banking services.
FBL’s subsidiary, Faysal Assets Management Limited (FAML), turned a corner and posted profit after tax of Rs. 4.55 million for the nine months ended September 30, 2020 after incurring losses for the past several years. AUMs have increased from 7.8bn to 41bn after the acquisition of control by the Bank in November 2018.