Faysal Bank Limited (FBL) (Urdu ：فیصل بینک لمیٹڈ） is a Pakistani Islamic bank headquartered in Karachi. It is a subsidiary of Ithmaar Bank. It is named after Mohammed bin Faisal Al Saud.

History

1987-2002: Started as an investment bank and traditional bank

Faysal Bank was established in Pakistan in October 1987 as a small branch, a subsidiary of Faysal Islamic Bank, a Barings Bank owned by Mohammed bin Faisal Al Saud, son of the late King Faisal of Saudi Arabia. The bank is part of a broader initiative of the Dar al-Maal al-Islami Trust (DMI), a Geneva-based organisation established in 1981 to promote Islamic banking worldwide. Faysal Bank's operations in Pakistan include a branch established in 1987 and the Faisal Islamic Investment Bank established in 1996.

In 1995, the branches of Faysal Islamic Bank were incorporated in Pakistan as a traditional bank and took over the six branches of Faysal Islamic Bank of Bahrain E. C in Pakistan. In the same year, it was listed on the Karachi Stock Exchange.

2002-2008: Mergers, Slow Growth and Controversies

In 2002, the Islamic Investment Bank merged with the traditional bank, causing it to lose its Shariah compliant status. This decision, driven by the choice of management rather than the demands of shareholders, led to a significant drop in deposits, from Rs 31.90 billion in 2001 to Rs 24 billion at the end of 2002, a decrease of 23%. Despite these setbacks, Faysal Bank managed to recover, even doubling its initial deposit base by the end of 2005. This recovery is largely due to deposits owned by Arab businesses, especially Attock Group, which has a presence in Pakistan's oil industry. At one point, Attock Group alone accounted for nearly a quarter of the bank's deposits.

In the mid-2000s, Faysal Bank faced other challenges related to its involvement in capital markets and legal issues involving its head of investment banking, Ajaz Rahim, who was accused of insider trading in New York.

2008-Present: Acquisition of Pakistan's Royal Bank of Scotland and Growth

In March 2008, Faysal Bank appointed Naved A. Khan, a former ABN Amro banker, as its new head. The board entrusted him with restructuring the bank's management. He implemented major changes, including laying off many existing staff and hiring a large team from ABN Amro.

In 2010, under Khan's leadership, Faysal Bank bought RBS Pakistan for £34 million, which had previously bought ABN Amro's Pakistan operations. Previously, ABN Amro Pakistan bought Prime Commercial Bank, a 69-branch bank spread across 24 cities, for $227 million in 2007, which was merged into Faysal Bank following the acquisition by RBS Pakistan.

Nauman Ansari, who succeeded Naved Khan, focused on roll-up and streamlining the bank's operations. Ansari cut the number of employees at the bank, which had grown significantly over the years. During Ansari's tenure, Faysal Bank turned its focus to growth, which included converting more branches into Islamic banking to take advantage of faster deposit growth associated with Islamic finance. The bank also expanded its branch network.

In 2014, it announced that it would transform itself into a full-fledged Islamic bank in 3 to 5 years. It eventually transformed into a full-fledged Islamic bank in December 2022