BAHRAIN, 16 August 2007 — Ithmaar Bank, a globally focused investment bank based in Bahrain, announced that its Pakistani subsidiary Faysal Bank Limited (FBL) achieved a $21.1 million net profit for the first six months of the year, a healthy 18 percent leap from the $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 percent increase. The growth is attributable to the increase in net mark-up income to $36.5 million, compared to $30.6 million. After neutralizing the unusual income of $3.5 million earned during 2006 from the sale of a property, the non-markup income also registered a growth of 33 percent. The board of directors has approved the issuance of 25 percent interim bonus shares.
“FBL is on track towards achieving another year of solid growth, with deposits up by 33 percent from $1.2 billion to $1.6 billion. On the asset side, the bank’s financing portfolio increased by 10 percent to reach $1.35 billion and investments by 34 percent to $500 million. Lending to financial institutions doubled during this period, with the bank’s distribution network expanded as well to 100 branches and four sales and 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 emphasizes 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 recognized dividend income on NIT units in the results of this half-year. The bank has also provided for $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 Oct. 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.
