Ithmaar Bank subsidiary: US$21.1 million half-year profits, up 18 per cent
Ithmaar Bank, a globally focused investment bank based in Bahrain, announced that its Pakistani subsidiary Faysal Bank Limited (FBL) achieved a US$21.1 million net profit for the first six months of the year, a healthy 18 per cent leap from the US$17.9 million earned during the same period last year.
Earnings per share stood at five cents at the end of June this year, compared to four cents at the same time last year, a 25 per cent increase. The growth is attributable to the increase in net mark-up income to US$36.5 million, compared to US$30.6 million. After neutralizing the unusual income of US$3.5 million earned during 2006 from the sale of a property, the non mark-up income also registered a growth of 33 per cent. The Board of Directors has approved the issuance of 25 per cent Interim Bonus Shares.
“FBL is on track towards achieving another year of solid growth, with deposits up by 33 per cent from US$1.2 billion to US$1.6 billion. On the asset side, the Bank’s financing portfolio increased by 10 per cent to reach US$1.35 billion and investments by 34 per cent to US$500 million. Placements in nostro and lending to financial institutions doubled during this period with the Bank’s distribution network expanded as well, to 100 branches and four Sales & Service Centers, compared to just 65 branches at the end of June last year,” said Ithmaar Bank Chairman and FBL Director Khalid Abdulla Janahi.
“These solid financials reflect FBL’s position as one of the most dynamic banking institutions in Pakistan and emphasises its importance within the Ithmaar banking group,” he added.
In line with the guidelines of the Institute of Chartered Accountants of Pakistan issued during the quarter under review, the Bank has not recognised dividend income on NIT units in the results of this half-year. The bank has also provided for US$2.6 million during the period in view of the regulatory amendment in the basis of valuation of unquoted shares.
The Bank, a member of the Ithmaar banking group, was incorporated on October 3, 1994 and is quoted on the Karachi and Lahore Stock Exchanges. Faysal Bank continues to enjoy the highest short term rating of A1+, and AA for the long term, as assessed by JCR-VIS as well as PACRA