MANAMA, BAHRAIN – 11 June 2018 – Ithmaar Bank, a Bahrain-based Islamic retail bank, announced today (ed note: 11/06/18) that its retail banking subsidiary in Pakistan, Faysal Bank Limited (FBL) has made steady progress over the years and is now recognised as a major player in the financial industry of Pakistan.
Ithmaar Bank owns 66.6 per cent of FBL which is listed on the Pakistan Stock Exchange and is mainly engaged in corporate, commercial, retail and consumer banking activities.
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 quarter ended 31 March 2018.
“I am pleased to announce that FBL registered a profit after tax of US$10.6 million (PKR 1.22 billion) during the first quarter of 2018, compared to a profit of US$16.2 million (PKR 1.87 billion) during the corresponding period in 2017. The decrease in profit is mainly due to one-off capital gain earned on government securities amounting to US$8.3 million (PKR 960 million) in the first quarter of 2017,” said Abdul Rahim. “The economic landscape in Pakistan is changing and, as a result, benchmark profit rates have started to improve and the Bank has decided to increase its lending books in selective segments to improve margins and profitability. The Bank shall also continue to build core and low-cost deposit base, as well as pursue recoveries from delinquent clients,” he said.
“The Bank is formulating a digital strategy to provide secure, state of the art and user-friendly banking services to our customers at a rationalized cost,” said Abdul Rahim. “It is also working to add new products and services that cater to the financial need of its customers,” he said.
FBL’s footprint now spreads to 124 cities with 404 branches and 404 ATM’s across Pakistan, and the Bank intends to increase its branch network by 50 branches in 2018, in continuation to a total of 125 branches opened during 2016 and 2017. The Bank’s deposits have reached US$3.3 billion and assets have crossed the US$4.2 billion mark with a capital base of more than US$350 million.
FBL’s financial performance has earned the Bank “AA” and “A1+” ratings for the long and short terms respectively, with stable outlook from JCR-VIS Credit Rating Company Limited and Pakistan Credit Rating Agency Limited.
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