The Board of Directors of Faysal Bank Limited, in their meeting held on August 25, 2022, approved the financial statements of the Bank for the half year ended June 30, 2022. The Board declared 5% interim cash dividend to the shareholders.
Profit before tax for the half year ended June 30, 2022 registered an impressive growth of 32.5% over the first half of 2021. The growth in profitability originated primarily from Bank’s focus on generating core customer deposits leading to 36.3% growth in its net markup income. Owing to broad based growth in fee income, the Bank’s non-markup income increased by 3.5% to PKR 4,424 million despite adverse stock market conditions prevailing throughout the period. Profit after tax increased by 9% to PKR 4,382 million over the corresponding period last year. Taxation, as a result of levy of 10% incremental tax on banking industry, was higher by PKR 867 million.
Total deposits of the Bank grew by 12.2% to PKR 722 billion as of June 30, 2022. Whereas advances grew by 19.7% to PKR 474 billion.
During the six months ended June 30, 2022 the Bank opened 27 new branches and converted 6 branches to Islamic. The Bank’s footprint now spreads over 223 cities across the country with 633 branches. In line with FBL’s strategy of transforming into a full-fledged Islamic Bank, Faysal Bank intends to apply to the State Bank of Pakistan for issuance of Islamic banking license later during the year.
The Bank will continue to invest in network expansion and is planning to open another 67 branches during the year. Alongside investment in branch infrastructure, the Bank is focused on providing innovative digital solutions to improve customer experience and bring cost efficiencies.