MANAMA, BAHRAIN – 20November 2016 – Ithmaar Bank, a Bahrain-based Islamic retail bank, announced today (ed note: 20/11/16) that its retail banking subsidiary in Pakistan, Faysal Bank Limited (FBL), is showing improved profitability and expanding its branch network.
The announcement, by Ithmaar Bank Chief Executive Officer and FBL Vice Chairman, Ahmed Abdul Rahim, follows the review and approval by the FBL Board of Directors of the financial results for the nine months ended 30 September 2016. FBL whichhas a network of 323 branches across Pakistan, is listed on the Pakistan Stock Exchange Ltd, and is mainly engaged in corporate, commercial and consumer banking activities. Ithmaar Bank owns 66.57 percent of FBL.
“I am pleased to announce that FBL reported a profit, after tax, of US$ 35 million (PKR 3.7 billion) during the first nine months of 2016, registering a 11.5 percent increase over the profit reported for the corresponding period of 2015 despite the imposition of the Super Tax by the Government of Pakistan which amounted to US$ 3.3 million (PKR 0.35 billion),” said Abdul Rahim. “FBL plans to increase its branch network to 355 by December 2016,” he said.
“Despite pressures on the profitability of the banks in Pakistan due to low spreads, FBL was able to improve its profitability by focusing on mobilisation of low cost deposits, prudent allocation of assets and cost efficiencies,” said Abdul Rahim. “These measures helped increase the Earnings Per Share (EPS) of the Bank from PKR 2.80 to PKR 3.12,” he said.
“Total deposits of the Bank have grown from US$ 2.81 billion (PKR 292 billion) as at 31 December 2015 to US$ 3.03 billion (PKR 315 billion) as at 30 September 2016, crossing the PKR 300 billion mark which is a milestone for the Bank,” said Abdul Rahim.
FBL planned to open 75 new Islamic branches in 2016, of which43 branches have already been opened.
FBL’s financial performance has earned the Bank “AA”and “A1+” ratings for the long andshort termsrespectively, with stable outlook, from the JCR-VIS Credit Rating Company Limited and the Pakistan Credit Rating Agency Limited.