The Board of Directors of Faysal Bank Limited on February 25th, announced the results of the bank for the year ended December 31, 2006. The bank registered a 23 percent rise in operating profits from Rs 3,659 million in 2005 to Rs 4,492 million.
The income from core banking activity has gone up as is evident from the increase in net markup income of Rs 612 million, a growth of 20 percent. Similarly, the higher dividends on NIT Units and Rs 117 million compensation on Income Tax Refunds contributed to the 33pc increase in non-markup income from Rs 2,063 million to Rs 2,753 million.
As predicted, operating expenses rose significantly in 2006 as a result of bank's expansion strategy-19 new branches opened and the implementation of the first phase of a new core banking system that is expected to be fully in place by the end of 2007. These costs were very much planned for and are expected to reap strong dividends in the years to come.
On the Balance Sheet side, the average deposits increased by 22pc whereas the average financing, investments and equity increased by 13pc, 74pc and 15pc respectively.
"FBL enjoyed another robust year in 2006, allowing us to focus on long-term plans which will put the bank in an ideal position to fully capitalise on Pakistan's very positive future outlook," said FBL president and CEO Farook Bengali.-PR
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