Faysal Bank profits skyrocket

Bank does well in all quarters after buying RBS Pakistan: analyst.

KARACHI:

Faysal Bank kicked off the earnings season in style by announcing profits that swelled eleven-fold during April to June 2011.

The bank’s net profit surged more than 1,000% to Rs552.5 million in the quarter ended June 30, 2011 compared with the preceding year’s Rs48.2 million, according to a notice sent to the Karachi Stock Exchange.

They have done well in all quarters after the acquisition of Royal Bank of Scotland Pakistan, said JS Global Capital analyst Mustufa Bilwani.

Improvement was witnessed all around as net interest income rose 57 per cent to Rs2.3 billion while non-interest expense switched to a profit of Rs1.3 billion from last year’s loss of Rs115 million. The statement now includes transferred accounts of RBS Pakistan.

Faysal Bank acquired RBS Pakistan for Rs4.3 billion ($50.37 million) in June 2010 after the Scotland-based bank decided to sell its Asian operations.

The bank’s stock price rose 0.4 per cent to close at Rs9.47 at the Karachi Stock Exchange on Tuesday.

Published in The Express Tribune, July 20^th, 2011.