Faysal Bank’s profit jumps 68% in fourth quarter

KARACHI: The Faysal Bank Limited (FABL) on Thursday announced profit-after-tax of Rs3.6 billion for the fourth quarter ended December 31, 2022, 68 per cent higher on a year-on-year basis, a statement said.

The earnings are also 5 per cent higher on a quarter-on-quarter (QoQ) basis, analysts at Arif Habib Limited said.

This takes the profit for the full-year to Rs11.4 billion (EPS: Rs7.54), up 37 per cent YoY. The rise in YoY earnings is primarily due to a jump in the total income along with a reversal in the provisioning charge. Along with the result, the bank also announced a DPS of Re1, taking the full-year dividend of the calendar year 2022 to Rs7.

The net interest income of the bank settled at Rs13 billion during the fourth quarter of CY22, increasing 89 per cent YoY and 22 per cent QoQ.

The interest expense went up 141 per cent YoY, as the impact of the interest rate hike was depicted in the outgoing quarter, while the interest income went up 118 per cent YoY. With this, the net interest income during CY22 posted a jump of 55 per cent YoY.

Similarly, the non-markup income depicted an increase of 7 per cent YoY in CY22, primarily due to an increase in the foreign exchange and fee incomes by 20 per cent YoY and 30 per cent YoY, respectively.

On the contrary, the bank posted the loss of Rs1.48 billion on securities during CY22 against a gain of Rs291 billion it booked in the same period of the last year.

FABL booked a reversal in provisioning worth Rs204 million during the fourth quarter of CY22 against a reversal of Rs171 million recorded in the same period of the last year. With this, the total reversals in provisioning charge for CY22 stood at Rs940 million.

The bank’s operating expense increased 46 per cent YoY and 20 per cent QoQ during the fourth quarter of CY22. With this, the cost and income stood at 54 per cent in the fourth quarter of CY22 against 63 per cent in the same period of the last year.

The effective tax rate was set at 51 per cent during the period under review, compared with 40 per cent in the corresponding period of the last year.

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