Karachi April 29, 2024:Maintaining its growth momentum, BankIslami delivered an impressive return for its shareholders, with a remarkable 99% surge in its profit before tax for the first quarter of 2024. The Bank’s profit before tax reached Rs. 6.3 billion, with a post-tax profit of Rs. 3.2 billion, representing a growth of 79.2%. Despite adverse market conditions, the Bank remains committed to financial excellence. Prominently, it demonstrated magnificent cost efficiency, as evidenced by the reduced cost-to-income ratio of 43.1% during the period, compared to 47.9% in the same period last year.
BankIslami strategically expanded its investment portfolio and grew its financing portfolio despite navigating through ongoing economic uncertainty. Consequently, the investment portfolio reached Rs. 332.2 billion, while the financing portfolio was at Rs. 253.6 billion showing an improvement in infection ratio to 8.2% from 9.0% in December 2023. The infection ratio of Islamic portfolios (i.e. excluding conventional portfolios inherited from combined entities) also improved from 6.9% in December 2023 to 6.3% in March 2024.
In Q1 2024, in spite of a 4.9% decrease in the deposit book compared to December 2023, the Bank observed a substantial year-on-year increase of 20.8%. The Bank is dedicated to increase its deposit base by promoting healthy growth in Current and Savings Accounts (CASA), supported by a strategic blend of initiatives aimed at strengthening trade finance, employee banking, and cash management business. With heightened profitability and an enhanced credit risk profile, the Bank’s Capital Adequacy Ratio (CAR) stood at an impressive 22.82%, well above the regulatory threshold of 11.50%
Way forward, the Bank is committed to its trajectory growth by expanding its deposit base, leveraging its extensive network, which has now surpassed 450 branches, and improved the customer experience through targeted technological advancements and an expanded digital footprint.
About BankIslami:
With a network of 450+ branches in over 175+ cities nationwide, BankIslami Pakistan Ltd. was the first Islamic commercial bank to receive the Islamic banking license under the Islamic banking policy of 2003 from the State Bank of Pakistan on March 31, 2005. The Bank started its operations on 7th April 2006 and offers Shariah-compliant retail banking, investment banking, consumer banking, and trade finance products.
For more information, please visit: https://bankislami.com.pk/
