The BoD of Faysal Bank Limited (FABL) is scheduled to meet to consider CY15 earnings on February 25, 2016 where we foresee the bank to post PAT of PKR4.2bn (EPS: PKR3.49) against preceding year same period earnings of PKR2.5bn(EPS: PKR2.06), an astounding growth of 69% Y/Y. This translates into 4QCY15 earnings of PKR825mn (EPS: PKR0.69), recording an increment of 4% Q/Q driven by capital gains, lower taxation charges and administrative expenses. We expect the bank to announce a cash payout of PKR1.00‐ 1.15/share.

Performance Preview 4QCY15

Deposits for the bank are likely to ratcheted up by a substantive 10.6% Q/Q, ena‐ bling FABL to break the 300mn mark (PKR319mn). On the flip side, loan book is also anticipated to expand by 8% Q/Q;

We foresee core funded income to be slashed by 12% Q/Q primarily due to a 5% Q/Q shrinkage in interest income on the back of laggard asset pricing coupled with low quantum of high yielding PIBs (25% of deposits). On the other hand, interest expenses are likely to  decline by 1% Q/Q;

is expected to remain subdued at PKR170mn with Agri‐ tech exposure being fully provisioned for in the quarter under review;

On a sequential basis, we expect non‐core income to witness an uptick of 8% Q/ Q driven by robust fee income;

Bottom line will be supported by a 12% Q/Q tapering in administrative expenses due to lower pension cost;

By: Habib Metropolitan Financial Services Limited