Faysal Bank Limited · PSX:FABL
Faysal Bank — H1 2023 Earnings Presentation
27 slides from Faysal Bank's earnings presentation, Sep 1, 2023
Slide 1: 1
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Slide 2: Investors' Briefing Session: Financial Performance – June'23
Investors’ Briefing Session Financial Performance – June’23 Date: September 1, 2023 Place: Karachi Presented by: Syed Majid Ali
Slide 3: Table of Contents
Table of Contents Item Slide No. FBL at a glance 4 FBL’s Vision, Mission and Core 7 Values Strategic Focus 9 Business Developments 12 Key Performance Highlights 16 Ratios 22 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 is the parent holding directly and indirectly 66.78% of shareholding. Dar Al-Maal Al—Islami Trust is the ultimate parent Size Rating 2nd Largest Islamic Bank in Pakistan Credit rating: Jun 2023 Network: 700 branches with presence Long Term: AA & Short Ter
Slide 6: Our Journey
Our Journey Journey of FBL highlighting the key events from 1987 to 2023 2023 2017 2022 2014 2003 2010 • Full fledged 1994 2001 Islamic bank 1987 Increased • Conversion to full- shareholding in fledged Islamic Faysal Asset bank Decision to Management • Amalgamation of convert into a full- Limited fr
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: Core Values, Vision and Mission
Core Values Accountability Vision Vision To be the best customer centric Islamic Innovation bank, driven by passion and belief. Mission Mission Teamwork Achieve leadership in providing Shariah compliant financial services with customer Integrity care and employee focus, at the heart of our business
Slide 9: Strategic Focus
Strategic Focus 9 Introduction Highlights Balance Sheet P&L Strategy Ratios
Slide 10: 2019 to 2023 Corporate Strategy Goals
2019 to 2023 Corporate Strategy Goals Positioning Strategic Actions Strategic Targets Status Strong ▪ Grow low-cost CASA deposits by focusing on mass- CASA Ratio: Improve Dec Jun Contender affluent customer segment 2022 2023 in Retail Market Share: Increase Branches 700 700 ▪ Network expansion netwo
Slide 11: 2019 to 2023 Corporate Strategy Goals
2019 to 2023 Corporate Strategy Goals Positioning Strategic Actions ▪ Use technology to differentiate from competitors Improved Customer ▪ Manage branch traffic through diversion to Digital Channels Experience –Digital ▪ Use advanced analytics to leverage data to support sales/ cross sales/ loyalty
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 94 branches to reach 700 branches with increase in deposits market share from 3.5% to 3.6% in 1 Retail Banking & Jun’23 CBSME ➢ CBSME crossed Rs. 59 billion. ➢ Noor Card is the most desirable card in the market, and its list of alliance partne
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 was named "Best Islamic Retail Bank in Pakistan 2022" at Islamic Retail Banking Awards (IRBA) held by Cambridge IFA • Best Bank of the Year 2021" by Chartered Financial Analyst (CFA) Society Pakistan amongst mid-size banks in the country • FBL bags 7 Global Diver
Slide 16: Key Performance Highlights
Key Performance Highlights 16 Introduction Highlights Balance Sheet P&L Strategy Ratios
Slide 17: Key Highlights
Key Highlights Record PBT of PKR 15 billion, 74% higher than PBT PAT the PKR 8.7 billion in June’22 PKR 15 Billion PKR 7.5 Billion +74% YoY +72% YoY Consistent improvement in spreads YoY to 5.3%, from 3.5% Strong current deposit momentum continued and reached PKR 330 billion, 19% growth over Dec’22
Slide 18: Statement of Financial Position
Statement of Financial Position Description Actual YoY Variance 1. Cash & Bank Balances – Higher due to mobilization of deposits at Rs in millions Jun'23 Dec'22 Amount % period, subsequently regularized. Cash and Bank balances 1 93,474 58,916 34,558 58.7% 2. Due to FIs – short term liquidity deploym
Slide 19: P&L – Half year ended June 2023
P&L – Half year ended 30 June 2023 Description Actual YoY Variance Rs in millions Jun'23 Jun'22 Amount % 72% growth in PAT Profit / return earned 82,104 40,814 41,290 101.2% 1. Net profit / return earned – Grown by 89% YoY underpinned by improvement in overall spreads Profit / return expensed (51,37
Slide 20: Non-Performing Financing
Non-Performing Financing Decrease in infection ratio with increase in coverage Infection ratio lower than industry Infection Ratio Specific Coverage Total Coverage FBL Industry 94.7% 12.0% 89.1% 89.2% 100.0% 10.0% 87.5% 9.2% 82.2% 90.0% 9.0% 10.0% 80.0% 7.7% 7.9% 7.8% 83.5% 85.5% 85.6% 86.1% 8.0% Ju
Slide 21: Deposit Composition
Deposit Composition Consistent growth in deposit base Stable FCY deposits Current Savings Term Local currency Foreign Currency 908 782 800 23%, 7.7% 7.2% 6.5% 7.0% 6.2% 14%, 206 20%, 644 156 113 541 25%, 158 48%, 41%, 28%, 45%, 373 382 153 348 93.5% 93.0% 93.8% 43%, 92.3% 92.8% 41%, 275 222 35%, 38%
Slide 22: Ratios
Ratios 22 Introduction Highlights Balance Sheet P&L Strategy Ratios
Slide 23: Profitability Ratios – Improving on all key metrics
Profitability Ratios – Improving on all key metrics Cost to Income ratio – Maintained at 51% Earning Per Share – Consistent growth in profitability 65.0% 60.8% 14.00 60.2% 60.0% 12.00 56.2% 9.92 10.00 8.48 55.0% 7.40 51.1% 50.9% 8.00 5.37 50.0% 6.00 4.29 4.00 45.0% 2.00 40.0% - FY 20 FY 21 FY 22 3M'
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 % 61.5% 61.1% 18.7% 1,100 58.9% 58.1% 57.4% 150 20.0% 17.5% 17.5% 1,000 60.0% 16.7% 18.0% 130 15.5% 900 50.0% 16.0% 800
Slide 25: Investor Metrics
Investor Metrics Share price Price Earning Ratio 4.50 4.28 4.03 25.83 4.00 3.49 23.00 3.50 21.77 20.18 3.00 2.57 17.28 2.50 2.03 2.00 FY 20 FY 21 FY 22 Mar'23 Jun'23 FY 20 FY 21 FY 22 Mar'23 Jun'23 Price to Book Ratio Market Capitalization – Rs in Bn 0.58 0.56 41.00 0.56 39.00 0.53 39.20 0.54 37.00
Slide 26: 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 27: Thank You
Thank You 27 Introduction Highlights Balance Sheet P&L Strategy Ratios