BankIslami delivers record 24pc surge in profit in FY24

KARACHI: BankIslami has posted a record-breaking 24.4 percent rise in pre-tax profit to Rs 25.5 billion for the year ending December 31, 2024, reinforcing its stature in Pakistan’s Islamic banking sector. Despite economic volatility and shifting regulatory conditions, net profit rose 7.1 percent to Rs. 11.8 billion.

Upholding its mission of “Saving Humanity from Riba,” the Bank announced a total dividend of Rs 2.75 per share, comprising a final 12.5 percent cash dividend alongside a previously declared 15 percent interim payout.

BankIslami’s balance sheet expanded steadily, with total deposits rising 7 percent year-on-year to Rs 559 billion. A notable 18.9percent surge in savings deposits and a 9.2 percent uptick in current deposits pushed the CASA ratio to 65.7percent, underscoring strong liquidity and depositor confidence. Gross financing jumped 28.8 percent to Rs 327.2 billion, while investments grew 9.9 percent to Rs 345.1 billion, reflecting a measured growth strategy.

Meanwhile, non-fund-based income (NFI) increased by Rs 1.3 billion, lifting its share of total income from 7.6 percent to 9%, broadening revenue streams.

The Bank’s risk management efforts further strengthened its financial position, with the infection ratio improving from 9 percent to 7.4 percent, driven by proactive credit risk management and recoveries. At the same time, the Bank’s Capital Adequacy Ratio (CAR) stood at 24.11 percent, well above the 11.50 percent regulatory requirement, highlighting its financial strength and stability.

Over the past year, BankIslami launched Pakistan’s largest Islamic banking marketing campaign, amplifying brand presence and customer engagement.

The Bank also spearheaded a major technological overhaul, with the launch of its new Internet and Mobile Banking applications as well as revamping its core banking system to enhance operational efficiency and digital capabilities.

Looking ahead, BankIslami is poised to deepen its digital footprint, enhance operational efficiencies, and expand its financing and investment portfolios.

With robust risk governance and a customer-centric strategy, the Bank remains well-positioned for sustained growth in an evolving financial landscape.

Copyright Business Recorder, 2025