FABL - CY22 Result Review, (AKD Off the Analyst's Desk Feb 23, 2023)
AKD, Off the Analyst's Desk
FABL: CY22 Result Review
Faysal Bank Limited (FABL) has announced its CY22 earnings earlier today, wherein the bank has posted consolidated earnings of PkR11.44bn (EPS: PkR7.54) for the full year, higher by 40%YoY, in line with our estimates.
- The sharp rise in annual earnings is attributed to expanding NIMs, which are estimated to be at 5.25% during the final quarter, up from 4.46% in 3QCY22 and 3.27% in CY21. Non-markup income also remained higher by 12%YoY, with Fee and commission income posting an increase of 30%YoY possible due to sharp rise in the number of branches (+40 branches during CY22) and launching of first ever Shariah-compliant credit card ‘Noor’ during CY21.
- Reversal of provisions continued to power through during the year, clocking in at PkR940mn (vs. PkR48mn last year), higher by 18.7x.
- On the cost side, the bank’s non-markup expenses have grown up to PkR27.8bn (up 33%YoY). Resultantly, cost-to-income ratio of the bank dropped to 57% from 61% last year
- Effective tax for the year stood at 49.6% vs. 39.2% in CY21, majorly owed to super tax charges in the current period.
- Alongside the earnings, the bank announced an interim cash dividend of PkR1/sh for the quarter, taking the full year payout to PkR7.0/sh (92% payout ratio)
AKD Research
AKD Securities Ltd. is one of the leading securities firm in Pakistan, providing a comprehensive range of investor focused services, including equity brokerage, economic and securities research, investment banking and financial advisory services. AKD Securities accounts for more than 6% of the average daily value of the Karachi Stock Exchange. AKD Securities was the first brokerage house to launch an online trading platform in Pakistan in November 2002 and now has the largest market share with over 6000 customers. This has helped diversify and expand the retail investor base in the country and ushered in a whole new universe of investors to the stock market.
AKD Securities Ltd. caters to a diversified group of domestic and international institutional investors, high net worth individuals and upscale retail clients, including expatriate Pakistanis. With high quality research, unparalleled execution and distribution capability for both regular and large block trades, AKD Securities Ltd. has earned an outstanding reputation in the Pakistani securities industry.Outside of commercial banks, AKD Securities Ltd. is one of the biggest capital market firms in the country. AKD Securities is the leader in raising and providing risk capital in underwriting, market making and mergers and acquisitions in Pakistan. Good corporate governance and professionalism are emphasized throughout the firm and AKD Securities Ltd. is amongst the very few companies to have introduced a firm-wide comprehensive CODE of ETHICS, overseen by an independent compliance manager.Ultimately, our success is based on the quality of service we provide to our customers and the trust and confidence reposed in us by them. Our focus, therefore, remains on customer satisfaction at all levels in the company.
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