Faysal Bank Ltd registers record growth in 2015

Manama: Ithmaar Bank, a Bahrain-based Islamic retail bank, announced yesterday that its retail-banking subsidiary in Pakistan, Faysal Bank Limited, has registered a record profit for 2015. The bank also announced a cash dividend of PKR 1 per share (10 per cent of share par value) for 2015.

“I am pleased to announce that Faysal Bank Limited registered a record profit, after tax, of US$41 million (PKR4.2 billion) during 2015, a 70pc increase over the profit reported for 2014,” said Ithmaar Bank Chief Executive Officer and Faysal Bank Limited Vice Chairman, Ahmed Abdul Rahim.

“During the year, Faysal Bank Limited’s operating income increased by 95pc, growing from US$35m (PKR3.5bn) in 2014 to US$67m (PKR6.9bn) in 2015. This increase was largely a result of focused efforts to strengthen the bank’s position through prudent asset allocation, while improving cost efficiencies, enhancing operational excellence and reducing funding costs,” he said.

“The bank’s balance sheet was also grown significantly with total assets increasing by 11pc to US$4bn (PKR430bn) as at 31 December 2015, compared to US$3.7bn (PKR388bn) as at 31 December 2014,” said Abdul Rahim.  “Total deposits have also grown from US$2.7bn (PKR283bn) as at 31 December 2014 to US$2.8bn (PKR292bn) as at 31 December 2015,” he said.

“In 2015, to protect its margins, Faysal Bank Limited re-profiled its savings book with a focus on market competitive pricing,” said Abdul Rahim. “During the year, the Bank successfully executed large corporate and investment banking deals and was also the lead arranger for entities in the energy sector,” he said.

“Faysal Bank Limited’s financial performance has earned the Bank “AA” and “A1+” ratings for the long and short terms respectively, with stable outlook, from the JCR-VIS Credit Rating Company Limited and the Pakistan Credit Rating Agency Limited,” said Abdul Rahim.

Faysal Bank Limited has a network of 279 branches as of 31 December 2015. Ithmaar bank directly, and indirectly through its subsidiaries, owns 66.57pc of Faysal Bank Limited.