Lahore, June 28, 2018 (PPI-OT):Faysal Bank Limited (FBL) continued its focus on growth and on strengthening its relative positioning among peer banks. The bank has enduring emphasis on low cost CASA deposits, prudent deployment of assets for better yields and carefully planned loan book growth. FBL reduced its Non-Performing Loans and is targeting further reduction in NPLs through various measures including recoveries and settlements under the approved policy. The bank has a continued focus on operational efficiency and despite increase in its branch network, the bank was able to keep costs under control.
These initiatives have supported the bank’s profitability and provided cushion against risk absorption capacity. The management is cognizant of dynamic competition in the industry and is taking steps to strengthen FBL’s positioning amongst medium-sized banks operating in Pakistan. FBL’s conversion into Islamic banking is a medium-term plan, which is being rolled out as envisaged. The banks’ capital adequacy has seen a substantial improvement, gradually over the years. Meanwhile, the ratings recognize FBL’s association with a foreign business group (Dar Al Maal Al-Islami Trust).
The ratings are dependent on bank’s ability to sustain improvement in its financial profile. This is important since most peer banks have gained in terms of their size and profitability matrix in recent years. Any material weakening in asset quality, in turn, putting pressure on bank’s profitability and risk absorption capacity may have negative implications for the ratings.
For more information, contact:
The Pakistan Credit Rating Agency Limited (PACRA)
Awami Complex, FB1, Usman Block New Garden Town,
Lahore – Pakistan
Tel: +9242 586 9504 -6
Fax: +9242 583 0425