Faysal Bank declared a consolidated profit after tax (PAT) of Rs20.25 billion for the year 2023, nearly 77% higher than the Rs11.44 billion recorded in 2022.

As per the financial results provided to the Pakistan Stock Exchange (PSX) on Wednesday, Faysal Bank announced earnings per share (EPS) of Rs13.34, as compared to EPS of Rs7.54 in same period last year.

In addition, the Board of Directors of Faysal Bank Limited announced a final cash dividend of Rs2 per share i.e. 20%. This is in addition to a 10% interim cash dividend for the second quarter and a 10% interim cash dividend for the third quarter.

Faysal Bank’s profit surges 76% in 6MCY23

The increase in profit was led by a sharp spike in profit/return earned on Islamic financing and related assets, investments and placements.

“This unprecedented profitability was mainly fueled by surge in profit earned spurred by a 600bps hike in interest rates during the year,” said Arif Habib Limited (AHL) in a note.

The net profit/return rose from Rs39.99 billion in 2022 to Rs71.07 billion in 2023, an increase of nearly 78%.

Among other income, the fee and commission income earned by Faysal Bank in 2023 clocked in at Rs9.4 billion, a surge of over 25% against Rs7.5 billion earned in the same period last year.

However, the dividend income of the firm reduced 36% from Rs513.46 million in 2022 to Rs327.23 million in 2023.

Faysal Bank’s foreign exchange income registered exceptional growth of nearly 84% from Rs2.6 billion in 2022 to Rs4.8 billion in 2023.

The other income earned by the bank remained largely stable at Rs263.6 million in 2023 as compared to Rs225.9 million in SPLY.

During 2023, operating expenses of Faysal Bank amounted to Rs40.25 billion, up 47% against Rs27.37 billion in SPLY.

Faysal Bank reported a sharp hike in expenditure on worker welfare fund, which almost doubled during the period. The bank spent Rs461.28 million under this head in 2022 and Rs886.62 million in 2023.