13/03/2016 08:14 AST
Ithmaar Bank, a Bahrain-based Islamic retail bank, yesterday announced that its retail banking subsidiary in Pakistan, Faysal Bank Limited, has registered a record profit for 2015.
Ithmaar Bank chief executive and Faysal Bank vice chairman Ahmed Abdul Rahim announced this after Faysal Bank board of directors approved financial results for the year ended December 31.
Faysal Bank has a network of 279 branches. It is listed on the Karachi, Lahore and Islamabad stock exchanges, and is mainly engaged in corporate, commercial and consumer banking activities.
Ithmaar Bank directly, and indirectly through its subsidiaries, owns 66.57 per cent of Faysal Bank. It also announced a cash dividend of 10pc, i.e. one Pakistani rupee per share for 2015.
“I am pleased to announce that Faysal Bank Limited registered a record profit, after tax, of $ 41 million during 2015, a 70pc increase over the profit reported for 2014,” said Mr Abdul Rahim.
“During the year, Faysal Bank’s operating income increased by 95pc, growing from $35m in 2014 to $67m 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 also grew significantly with total assets increasing by 11pc to $4 billion as at December 31 last year, compared with $3.7bn as at December 31, 2014,” said Mr Abdul Rahim.
“Total deposits have grown from $2.7bn as at December 31, 2014 to $2.8bn as at December 31 last year,” Mr Abdul Rahim said.
“In 2015, to protect its margins, Faysal Bank re-profiled its savings book with a focus on market competitive pricing,” said Mr 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.
“The bank’s financial performance has earned it “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 Mr Abdul Rahim.
Gulf Daily News
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