TC Jan-Feb 2021 Issue

TRADE CHRONICLE
Bank Alfalah maintained operating
profit at Rs. 25.5 billion
The Board of Directors of Bank Alfalah
Limited in its meeting held on February
3, 2021, approved the Bank’s audited
financial statements for the year ended
December 31, 2020.
The Bank reported an operating profit
of Rs. 25.468 billion, marginally higher
than last year, despite lockdown in
the country and the 625 bps drop in
policy rate during the year. Subjective
provisioning and general provision
buildup against advances contained
Faysal Bank wins ‘Best
Emerging Bank 2020’ Award
Faysal Bank Limited, a leading
commercial and Islamic bank of
profit after tax at Rs.
10.475 billion, which
translates into earnings
per share of Rs. 5.89
(2019: Rs. 7.15).
Total deposits and gross advances
were reported at Rs. 881.767 billion
and Rs. 600.899 billion, growing by
12.7% and 13.4% respectively. Gross
advances to deposits ratio stood at
68.1%. CASA ratio improved to 79.8%,
while the current account mix reached
a high of 46.6%. We continued to
support our credit clients throughout
this challenging period. The Bank
has non-performing advances of Rs.
25.860 billion and the NPL ratio stands
at 4.3%. Provision coverage ratio
increased to 91.2% at year end.
Net markup income was Rs. 44.705
billion, flat versus the prior-year, with
the impact of lower rates and certain
Pakistan, has been accoladed with
the “Best Emerging Bank 2020”
award at the 5th Pakistan Banking
Awards (PBA) ceremony held in
Karachi recently. As the fastest growing
Islamic bank in Pakistan offering a
complete range of Islamic
banking products and
services. For the last few
years, Faysal Bank has been
on a transformation journey
and having successfully
achieved the milestone of
500 Islamic branches out
of its branch network of 576
is currently on track to the
largest Islamic conversion
in banking history.
Covid related actions offset by balance
sheet growth and a favourable assetliability
mix. Non-markup revenue was
Rs. 12.795 billion, up by 23.5%, with
sizable contribution from capital gains
on government securities. Fee and
commission income remained muted
due to lower transaction volumes,
revenue recognition in line with IFRS 15
which requires deferral of fee income
over the contract period and regulatory
waivers of branch and digital banking
fees.
Non-markup expense was Rs. 32.032
billion, with growth contained at 7.3%.
The main cost drivers were higher staff
costs, IT support and maintenance
fee, and the full year impact of new
branches opened last year, along with
the overall impact of inflation. Thus the
cost to income ratio of the Bank was
reported at 54.7%, slightly higher than
last year.
TPL wins 9 awards
TPL, Pakistan’s leading technology
driven conglomerate, won nine awards
at the ‘10th Annual Corporate Social
Responsibility Summit & Awards 2021’,
held at the Marriot Hotel, Karachi.
Faysal Islami launches ‘Noor’ Card: A shariah compliant
alternative to conventional credit cards
Faysal Bank Limited, Pakistan’s fastest
growing Islamic Bank has launched
“Noor” Card – a Shariah compliant
alternative to conventional credit
cards, facilitating its Islamic banking
consumers with a range of benefits and
Halal offers across various categories
of spend – powered by Mastercard.
Taking the different needs of its
customers into account, the Faysal
Islami Noor card is available across
several variants, from Platinum to
Titanium, with each providing different
levels of added benefits and features
to cardholders for exclusive shopping,
dining and traveling experiences.
Inching closer on its journey to complete
Islamic conversion, Faysal Islami Noor
is Pakistan’s first Islamic card based
on Shariah principle of Tawarruq with
3D Secure, contactless payment
and transaction services, leading its
consumers to a hallway of premium
Islamic lifestyle while also keeping their
convenience of everyday life in check.
Commenting on this achievement
of another milestone, Mr. Tahir
Yaqoob Bhatti, Faysal Bank’s
Head of Retail Banking, said,
“The launch of Faysal Islami Noor
card reaffirms our commitment to
achieving leadership in providing
Shariah-compliant financial and
payment services to our customers.
The launch of ‘Noor’ sets sail to a
trailblazing initiative to the Bank’s
credit, transforming the experience
of Islamic banking customers. Now,
Noor Card customers can use this
Shariah compliant card with complete
satisfaction and peace of mind, availing
a range of distinct reward systems
and premium benefits within the strict
umbrella of Shariah compliant banking
practices and principles.”
TRADE CHRONICLE - Jan - Feb - 2021 - Page # 31