Faysal Bank Limited is a Pakistani Islamic bank, a subsidiary of KSA Holdings, the ultimate parent of bank is KSA Holdings and Ithmaar Bank,[2] based in Karachi, Pakistan.[3] It is named after Mohammed bin Faisal Al Saud.
Native name | Urdu: فیصل بینک لمیٹڈ |
|---|---|
| Company type | Public |
| PSX: FABL | |
| Industry | Islamic banking |
| Founded | 3 October 1994 |
| Headquarters | Karachi, Pakistan |
Key people | |
| Products | Islamic banking, loans, consumer banking, business banking, priority banking, credit cards, debit cards, savings |
| Revenue |  Rs. 83.142 billion (US$290 million)[1] (2023) |
| Rs. 41.422 billion (US$140 million)[1] (2023) | |
| Rs. 20.046 billion (US$69 million)[1] (2023) | |
| Total assets | Rs. 1.370 trillion (US$4.7 billion)[1] (2023) |
| Total equity | Rs. 90.198 billion (US$310 million)[1] (2023) |
Number of employees | 8,787[1] (2023) |
| Parent | KSA Holdings |
| Website | www |
Faysal Bank has over 700+ branches across 270+ cities in Pakistan.
History edit
Faysal Bank started in Pakistan in October 1987, with a tiny branch and as a subsidiary of Faysal Islamic Bank, a Bahraini bank owned by Mohammed bin Faisal Al Saud, the son of the late King Faisal of Saudi Arabia.[4] The bank was part of a broader initiative by the Dar al-Maal al-Islami Trust (DMI), a Geneva-based organization founded in 1981 to promote Islamic banking worldwide.[5] Faysal Bank's operations in Pakistan consisted of the branch operations established in 1987 and Faisal Islamic Investment Bank, which was set up in 1996.[5]
In 1995, the branches of Faysal Islamic Bank were incorporated as a conventional bank in Pakistan.[5]
In 2002, the Islamic investment bank merged with the conventional bank, resulting in the loss of its Shariah-compliant status.[5] This decision was driven by management choices rather than shareholder demands and led to a significant decline in deposits, from Rs31.9 billion in 2001 to Rs24 billion by the end of 2002, representing a 23 percent drop.[5] Despite these setbacks, Faysal Bank managed to recover and even double its initial deposit base by the end of 2005.[5] This recovery was largely attributed to deposits from Arab-owned businesses, particularly the Attock Group, which has a presence in Pakistan's oil industry. At one point, the Attock Group alone accounted for nearly a quarter of the bank's deposits.[5]
In the mid-2000s, Faysal Bank faced additional challenges related to its substantial involvement in Pakistan's capital markets and legal issues involving its head of investment banking, who was charged with insider trading in New York.[5]
ABN AMRO Bank Pakistan, a predecessor to Faysal Bank, acquired Prime Commercial Bank consisting of 69 branches and spanning 24 cities in 2007 for US$227 million to expand its loan and deposit base.[6]
In March 2008, Faysal Bank appointed Naved A. Khan, a former banker at ABN Amro, as its new head.[5] He was tasked by the board to restructure the bank's management.[5] He implemented major changes, which included dismissing many existing staff members and hiring a large team from ABN Amro.[5]
In 2010, under Khan's leadership, Faysal Bank acquired RBS Pakistan for £34 million, which had previously acquired the Pakistan operations of ABN Amro.[5][7]
Nauman Ansari, who succeeded Naved Khan, focused on integrating the acquisition and streamlining the bank's operations.[5] Ansari reduced the bank's workforce, which had grown significantly over the years.[5] During Ansari's tenure, Faysal Bank shifted its focus on growth, which included converting more branches to Islamic banking in an effort to capitalize on the faster deposit growth associated with Islamic finance.[5] The bank also expanded its branch network.[5]
In 2014, it announced to convert itself into a full-fledged Islamic Bank in three to five years.[8] It finally converted to a full-fledged Islamic bank by December 2022.[9]
References edit
- ^ a b c d e f "Faysal Bank Annual Report 2023" (PDF). faysalbank.com. Retrieved 26 March 2024.
- ^ "A Bank in Pakistan is Splurging on 200 New Branches". Bloomberg. 1 May 2019. Retrieved 6 August 2020.
- ^ "About Faysal Bank". Archived from the original on 2011-10-11. Retrieved 2011-09-24.
- ^ Report, Monitoring (April 16, 2018). "Gulf investors seek exit opportunity from Pakistan's banking industry".
- ^ a b c d e f g h i j k l m n o p Tirmizi, Farooq (April 16, 2018). "Three major banks are up for sale. Who will buy them?". Profit by Pakistan Today.
- ^ "Banks' appetite for acquisitions". DAWN.COM. May 3, 2010.
- ^ "RBS sells its operations in Pakistan". BBC. 16 June 2010. Retrieved 6 August 2020.
- ^ "Pakistan's Faysal Bank to convert into Islamic bank". Reuters. 2014-03-25. Retrieved 2020-07-09.
- ^ "Faysal Bank branches now 100% Islamic; awarded Islamic Banking license". 2022-12-30.
External links edit
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