Islamabad, Feb 28: BankIslami has reported a record-breaking 24.4% increase in pre-tax profit, reaching Rs. 25.5 billion for the year ending December 31, 2024, further solidifying its position in Pakistan’s Islamic banking sector. Despite economic uncertainties and evolving regulatory conditions, the bank achieved a 7.1% rise in net profit, totaling Rs. 11.8 billion.
Staying true to its commitment to interest-free banking, BankIslami declared a total dividend of Rs. 2.75 per share, which includes a final 12.5% cash dividend in addition to a previously announced 15% interim payout. The bank’s financial growth was underpinned by a steady 7% year-on-year increase in total deposits, which climbed to Rs. 559 billion. Notably, savings deposits surged by 18.9%, while current deposits rose by 9.2%, pushing the CASA ratio to an impressive 65.7%, reflecting strong depositor confidence.
Gross financing witnessed a sharp 28.8% jump to Rs. 327.2 billion, while investments expanded by 9.9% to Rs. 345.1 billion, reflecting a well-calibrated growth strategy. The bank also saw an improvement in non-fund-based income, which rose by Rs. 1.3 billion, increasing its share of total revenue from 7.6% to 9%, diversifying its income streams.
BankIslami’s focus on risk management further strengthened its financial standing, with the infection ratio improving from 9% to 7.4%, driven by proactive credit monitoring and recoveries. Additionally, its Capital Adequacy Ratio (CAR) stood at a robust 24.11%, significantly exceeding the regulatory requirement of 11.50%, highlighting the bank’s financial resilience.
Over the past year, the bank executed Pakistan’s largest Islamic banking marketing campaign, elevating its brand visibility and customer outreach. Simultaneously, it introduced a comprehensive technological transformation by launching new Internet and Mobile Banking applications and upgrading its core banking system to enhance operational efficiency.
With a nationwide network of 540 branches, BankIslami is not only expanding its physical footprint but also investing heavily in digital banking solutions. Looking ahead, the bank aims to strengthen its digital infrastructure, optimize operational efficiencies, and further expand its financing and investment portfolios. With a strong governance framework and customer-centric approach, BankIslami is well-positioned for continued growth in an evolving financial landscape.
