Faysal Bank posts 77pc jump in annual profit

KARACHI: Faysal Bank Limited reported a 77 percent surge in its annual profit after tax for 2023, driven by higher interest income and non-markup income.

The bank said on Wednesday its profit after tax rose to Rs20.247 billion, or Rs13.34 per share, in 2023 from Rs11.438 billion, or Rs7.54 per share, a year earlier.

The board of directors recommended a final cash dividend of Rs2 per share, or 20 percent, for the year ended Dec. 31, 2023, in addition to interim cash dividends of 10 percent each for the second and third quarters.

The bank's net interest income, the difference between interest earned and interest paid, jumped 77.72 percent to Rs71.07 billion in 2023, as interest-earning assets grew 81.25 percent to Rs189.46 billion, boosted by higher interest rates in the country.

The bank's total non-markup income, which includes fee, commission, brokerage, foreign exchange and dividend income, also increased 36.96 percent to Rs13.06 billion in 2023.

The bank's total non-markup expenses rose 48.05 percent to Rs41.254 billion. The bank recorded a provision reversal of Rs1.187 billion, compared to a provision expense of Rs940.03 million in 2022, reflecting an improvement in the quality of its loan portfolio.

The bank’s total assets witnessed a 27.5 percent increase, reaching Rs1.4 trillion in 2023.

The bank's tax expense increased 91.97 percent to Rs21.6 billion.

Mian Muhammad Younis, chairman of Faysal Bank said the significant milestone of achieving Rs1 trillion in deposits marks a reaffirmation of trust and confidence reposed in us by our customers”

“We look forward to continuing this journey of excellence, innovation, and best-in-class Shariah Compliant Islamic Banking, ensuring a positive impact on all our stakeholders."

Yousaf Hussain, president & CEO of Faysal Bank said thanked all stakeholders for their support, which has been a driving force behind the journey of growth of Faysal Bank.