FABL Intro:

Faysal Bank Limited is a leading commercial bank in Pakistan, providing a diverse range of
financial services. Established in 1994 and is listed on the Pakistan Stock Exchange.
Faysal Bank caters to individual, business, and corporate clients through a comprehensive suite
of services, including traditional banking products like accounts, loans, and credit cards. In the
corporate sector, it offers solutions such as trade finance, working capital, and corporate lending.
The bank also provides investment advisory and treasury services, with a focus on wealth
management for high-net-worth individuals. Additionally, Faysal Bank is committed to Islamic
banking principles, offering Sharia-compliant products.
With a significant presence across Pakistan, Faysal Bank boasts an extensive branch network and
ATMs, ensuring accessibility for customers in various regions of the country. Now, let's delve
into the financial metrics that provide insights into the bank's performance in the stock market.

CAPM and Beta:

CAPM (Capital Asset Pricing Model): Faysal Bank is expected to deliver a return of 11.5%. This
indicates the anticipated return for investors considering the bank's risk in relation to the overall
market.
Beta (1.055): With a Beta slightly above 1, Faysal Bank's stock tends to be a bit more responsive
to market movements. This suggests that the bank's stock may experience slightly more volatility
compared to the broader market.
Risk Measure - Standard Deviation:
Stock Standard Deviation (0.0219): Faysal Bank's stock exhibits a standard deviation of 0.0219.
A lower standard deviation implies a more stable performance, suggesting that the stock tends to
have less variability in returns.
Rate of Return:
Average Rate of Return (Faysal Bank): -0.38%: On average, Faysal Bank's returns were -0.38%,
indicating a small decrease over the specified period.
Average Rate of Return (KSE-100): -0.07%: In comparison, the broader market, as represented
by the KSE-100, experienced a slightly smaller dec line in returns on average.
Rate of Return (Faysal Bank during a specific period): -4.04%: However, during a specific
timeframe, Faysal Bank faced a decline of -4.04%, while the KSE-100 gained 11.18%.
Analysis:
Faysal Bank's CAPM suggests a relatively optimistic expected return, but it's crucial to consider
the associated risk, indicated by the Beta and standard deviation.
The Beta above 1 suggests that Faysal Bank's stock may have slightly more ups and downs than
the market average.
The lower standard deviation implies relative stability in the stock's performance, although it
should be noted that standard deviation measures historical volatility, and future performance
may vary.
The average rate of return, especially during the specific period of -4.04%, indicates challenges
or volatility faced by Faysal Bank, contrasting with the positive performance of the broader
market.
In conclusion, Faysal Bank's performance is marked by a mix of optimistic expectations, relative
stock stability, and challenges in specific periods, highlighting the importance of considering
both potential returns and associated risks when evaluating the bank's investment prospects.