Faysal Bank Limited · PSX:FABL
Faysal Bank — FY2023 Earnings Presentation
29 slides from Faysal Bank's earnings presentation, Mar 1, 2024
Slide 1: 1
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Slide 2: Investors' Briefing Session Financial Performance – Dec'23
Investors’ Briefing Session Financial Performance – Dec’23 Date: March 01, 2024 Place: Karachi Presented by: Syed Majid Ali – Chief Financial Officer
Slide 3: Table of Contents
Table of Contents Item Slide No. FBL at a glance 4 FBL’s Vision, Mission and Core 8 Values Strategic Focus 10 Business Developments 13 Key Performance Highlights 17 Key Performance Indicators 23 ESG 27 3 Introduction Highlights Balance Sheet P&L Strategy Ratios
Slide 4: FBL – At a glance
FBL – At a glance 4 Introduction Highlights Balance Sheet P&L Strategy Ratios
Slide 5: Faysal Bank
Faysal Bank Ownership Ithmaar Holdings B.S.C (66.78%) Dar Al-Maal Al-Islami Trust – ultimate parent KPIs Credit Rating Assets: Rs. 1.4 Trillion Long Term: AA Deposits: Rs. 1 Trillion Short Term: A1+ Deposits Market share: 3.7% PAT: Rs. 20 Billion ↑79% CAR: 17.46% Footprint Diversified offerings 2nd
Slide 6: Our Journey
Our Journey Journey of FBL highlighting the key events from 1987 to 2023 • Amalgamation of RBS Faysal Islamic Merger of Al- Pakistan with and into Increased shareholding • 2nd Largest Islamic Bank of Bahrain Faysal Investment FBL in Faysal Asset Bank started operation Bank Limited with • Branch netw
Slide 7: FBL's Vision, Mission and Core Values
FBL’s Vision, Mission and Core Values 7 Introduction Highlights Balance Sheet P&L Strategy Ratios
Slide 8: FBL's core values – its building blocks
To be the best FBL’s core values – its building blocks customer centric Islamic bank, driven by passion and belief. Integrity Care Mission Achieve leadership in providing Shariah Faith & compliant financial services with Innovation Teamwork Belief customer care and employee focus, at the heart of ou
Slide 9: Strategic Focus
Strategic Focus 9 Introduction Highlights Balance Sheet P&L Strategy Ratios
Slide 10: Corporate Strategy Goals
Corporate Strategy Goals Positioning Strategic Actions Strategic Targets Status Strong ▪ Grow low-cost CASA deposits by CASA Ratio: Improve Dec Dec Dec Dec Retail focusing on mass-affluent 2020 2021 2022 2023 Franchise customer segment Market Share: Increase Branches 576 606 700 722 network & deposi
Slide 11: Corporate Strategy Goals
Corporate Strategy Goals Positioning Strategic Actions ▪ Use technology to differentiate from competitors Improved Customer ▪ Manage branch traffic through diversion to Digital Channels Experience –Digital ▪ Through advanced analytics leverage data to support sales/ cross sales/ loyalty programs ▪ O
Slide 12: Business Developments
Business Developments 12 Introduction Highlights Balance Sheet P&L Strategy Ratios
Slide 13: Major Business Developments
Major Business Developments Business Performance ➢ Added 22 branches to reach 722 branches with increase in deposits market share from 3.5% to 3.7% in Dec’23 Retail Banking & 1 CBSME ➢ Launched Amal a branded account for women ➢ CBSME surpassed the PKR 63 billion milestone with a remarkable 36% incr
Slide 14: Major Business Developments
Major Business Developments Business Performance ➢ A strong shift in customer transaction behavior towards digital modes persuaded the Digital Banking Group to continue innovating to ensure that the customers have a seamless banking experience, on digital channels. ➢ WhatsApp Banking has seen sizeab
Slide 15: Recognition and Accreditations
Recognition and Accreditations FBL gets Global Recognition as the “Best Emerging Islamic Bank” at Global Islamic Finance Awards. FBL was awarded the "Best Emerging Bank" at Pakistan Banking Awards Secured 4th place at the Best Corporate Report Awards organized by ICAP & ICMAP Faysal Bank has been ho
Slide 16: Key Performance Highlights
Key Performance Highlights 16 Introduction Highlights Balance Sheet P&L Strategy Ratios
Slide 17: Key Highlights
Key Highlights Deposits Consistent PKR 1 CASA Mix stands at improvement in PAT Trillion Market 75%, decline since spreads YoY to 6.0%, +30% Share Dec 22 - 80%, due to from 4.0% growth in term PKR 20 Deposits: deposits Billion 3.7% +79% YoY Dec’22: 3.5% Strong current Record PBT of PKR 41 billion, 85
Slide 18: Statement of Financial Position
Statement of Financial Position Description Actual YoY Variance 1. Cash & Bank Balances – Higher statutory cash reserve requirement in Rs in millions Dec'23 Dec'22 Amount % line with increase in deposits (PKR 14 Bln) and higher NBP balances Cash and Bank balances 1 85,849 58,916 26,933 45.7% (PKR 9
Slide 19: P&L – Year ended Dec 2023
P&L – Year ended 31 Dec 2023 79% growth in PAT Description Actual YoY Variance Rs in millions Dec'23 Dec'22 Amount % 1. Net profit / return earned – Grown by 78% YoY Profit / return earned 189,448 104,521 84,927 81.3% underpinned by improvement in overall spreads (Impact: Profit / return expensed (1
Slide 20: Financing
Financing Gross Financing – Rs in Billions Gross Financing – Business segment wise composition 0 , 0% 9 , 1% 650 129 , 22% 550 450 601 350 474 443 , 76% 417 250 334 340 150 Dec'19 Dec'20 Dec'21 Dec'22 Dec'23 CIBG Retail SAM Others Stable coverage ratio Infection ratio lower than industry 45 89% Dec’
Slide 21: Deposits
Deposits The growth momentum has doubled in the last 3 years 1,200 1,000 Deposit composition relatively remained unchanged 800 18% 600 1,018 17% 400 782 Individuals 644 3% 541 Government 3% 200 409 458 2% Public Sector Entities 4% 1% 1% - Banking Companies 57% Dec 18 Dec 19 Dec 20 Dec 21 Dec 22 Dec'
Slide 22: Key Performance Indicators
Key Performance Indicators 22
Slide 23: Profitability Ratios – Improving on all key metrics
Profitability Ratios – Improving on all key metrics Cost to Income ratio – Reduced to 49% Earning Per Share – Consistent growth in profitability 65.0% 16.00 60.8% 13.21 60.2% 14.00 60.0% 12.00 56.2% 10.00 55.0% 7.40 8.00 49.1% 5.37 6.00 4.29 50.0% 4.00 45.0% 2.00 FY 20 FY 21 FY 22 FY 23 FY 20 FY 21
Slide 24: Balance Sheet Ratios – Improving on all key metrics
Balance Sheet Ratios – Improving on all key metrics Advances to Deposits Ratio - Among the highest Strong Capital Position Total Deposits Net Advances ADR Net Eligible Capital CAR % 58.9% 61.5% 150 18.7% 21.0% 1,150 58.1% 57.03% 17.5% 17.5% 60.0% 130 15.5% 950 16.0% 1,018 50.0% 110 750 40.0% 90 11.0
Slide 25: Investor Metrics
Investor Metrics Share price Price Earning Ratio 4.50 4.28 32.58 4.03 4.00 3.49 25.83 3.50 23.00 3.00 2.47 17.28 2.50 2.00 FY 20 FY 21 FY 22 FY 23 FY 20 FY 21 FY 22 FY 23 Price to Book Ratio Market Capitalization – Rs in Bn 0.58 0.56 55.00 0.55 0.56 50.00 0.53 0.54 45.00 49.45 0.52 0.50 40.00 0.48 3
Slide 26: ESG
ESG 26 Introduction Highlights Balance Sheet P&L Strategy Ratios
Slide 27: UN Sustainability Development Goals
UN Sustainability Development Goals Environment – Our Impact on the Environment FBL has been at the forefront in financing the renewable energy sector FBL is contributing towards following UN SDG goals PSX has set a target of 6 SDGs for listed companies Life cycle replacement plan to replace traditi
Slide 28: Important Information
Important Information This presentation is prepared for information purposes only, is not and does not form part of any offer for sale or solicitation of any offer to subscribe for or purchase or sell any securities nor shall it or any part of it form the basis of or be relied on in connection with
Slide 29: Thank You
Thank You 29 Introduction Highlights Balance Sheet P&L Strategy Ratios