Islamabad, Aug 27: As it continues on its current growth trajectory, BankIslami has increased its profit before taxes by an impressive 66.2 percent for the half-year that concluded in 2024, providing significant returns to its shareholders.
The Bank’s profit after taxes increased to Rs. 7.1 billion from Rs. 13.8 billion before taxes, a strong 32.1 percent growth. In spite of difficult market conditions, BankIslami is unwavering in its dedication to excellence in finance.
The notable increase in non-fund-based income (NFI), which increased by almost a billion rupees in comparison to the same period previous year, was one of the period’s main highlights. The Bank’s strategic focus on varied revenue streams is shown by the improvement in the NFI ratio to total income, which increased to 10.5 percent from 8.9 percent in the previous year.
The Board of Directors of BankIslami has declared an interim dividend of Rs. 1.5 (15 percent) for the first half of 2024, in line with the company’s strong financial performance. This choice demonstrates the Bank’s dedication to its significant shareholders and its faith in its ability to develop.
Amidst persistent economic instability, BankIslami judiciously broadened its range of investments and meticulously enhanced its financing portfolio. The gross finance portfolio saw a controlled drop of 12.8% to settle at Rs. 221.5 billion, while the investment portfolio reached Rs. 346.5 billion. The infection ratio increased as a result of this tactical change, rising from 9% at the end of 2023 to 10.9 % in the current era.
The Bank’s deposit portfolio grew significantly, increasing by 5.39 percent from December 31, 2023, and by 18.95 percent from the period ending June 30, 2023. The Bank’s Current Accounts (CA) ratio increased from 37.32 percent to 37.88 percent on December 31, 2023, mostly due to a 7 percent increase in CA.
Additionally, the CASA ratio held steady, surpassing 60 percent, indicating rising consumer confidence, improved liquidity, and a deliberate focus on strengthening trade financing and other commercial channels. Due to increased profitability and a more robust credit risk profile, BankIslami’s Capital Adequacy Ratio (CAR) exceeded the statutory threshold by a significant margin, standing at an astounding 24.83 percent.
In the future, BankIslami is dedicated to fortifying its growth through the extension of its deposit base, the utilization of its vast network of more than 490 branches, and the improvement of the customer experience via focused technology innovations and a wider digital influence, with 1.36 million shares, BIPL’s scrip in the market closed at Rs. 23.76 on Tuesday, down 1.12% or Rs. 0.27.
