BankIslami reports strong financial performance in 9 months

LAHORE: BankIslami continues its growth trajectory, delivering substantial returns to its shareholders with a remarkable 33.6% increase in profit before tax for the nine-month ended September 2024. The Bank’s profit before tax reached Rs19.9 billion, while its post-tax profit surged to Rs10.2 billion, reflecting a robust 20.5% growth. Despite challenging market conditions, BankIslami remains steadfast in its commitment to financial excellence.

A key highlight of this period was the significant rise in Non-Fund-based Income (NFI), which grew by nearly Rs1.3 billion compared to the same period last year. The NFI ratio to total income also improved, rising to 9.4% from 7% in the previous year, underscoring the Bank’s strategic focus on diversified revenue streams.

In response to ongoing economic uncertainty, BankIslami strategically expanded its investment portfolio while prudently optimizing its financing portfolio. The investment portfolio reached Rs346.7 billion, while the gross financing portfolio saw a controlled reduction of 21.5%, settling at Rs199.5 billion. This strategic adjustment led to an increase in the infection ratio from 9% at the end of 2023 to 12.7% in the current period.

The Bank’s deposit portfolio experienced significant growth, rising by 19.5% compared to the period ended September 30, 2023, and by 5.6% compared to December 31, 2023. This growth was largely fuelled by a 12.2% rise in Term Deposits since December 2023 bringing stability in deposit book. The CASA ratio also remained strong, maintained at 60%, reflecting growing consumer confidence, enhanced liquidity, and a strategic emphasis on expanding trade finance and other business avenues.

With heightened profitability and a strengthened credit risk profile, BankIslami’s Capital Adequacy Ratio (CAR) stood at an impressive 29.16%, well above the regulatory threshold of 11.50%.

Copyright Business Recorder, 2024