MANAMA: Ithmaar Bank, a Bahrain-based Islamic retail bank, announced that its retail banking subsidiary in Pakistan, Faysal Bank (FBL) has made steady progress over the years and is now recognised as a major player in the financial industry of Pakistan.
Ithmaar Bank owns 66.6 per cent of FBL which is listed on the Pakistan Stock Exchange and is mainly engaged in corporate, commercial, retail and consumer banking activities.
The announcement, by Ithmaar Bank chief executive and FBL vice-chairman Ahmed Abdul Rahim, follows the review and approval by the FBL board of directors of the financial results for the quarter ended March.
“I am pleased to announce that FBL registered a profit after tax of $10.6 million during the first quarter of 2018, compared to a profit of $16.2m during the corresponding period in 2017. The decrease in profit is mainly due to one-off capital gain earned on government securities amounting to $8.3m in the first quarter of 2017,” said Mr Abdul Rahim.
“The economic landscape in Pakistan is changing and, as a result, benchmark profit rates have started to improve and the bank has decided to increase its lending books in selective segments to improve margins and profitability. The bank shall also continue to build core and low cost deposit base, as well as pursue recoveries from delinquent clients,” he said.
According to him, FBL is formulating a digital strategy to provide secure, state-of-the-art and user-friendly banking services to customers at a rationalised cost.