KARACHI: BankIslami has reported it's highest-ever profitability during financial year 2020. Profit after tax closed at Rs 1.70 billion, up by 56 percent comparing with profitability of Rs 1.09 billion during financial year 2019.
Despite downward adjustment in policy rate, net spreads of the Bank increased by 16 percent on account of 21 percent growth in earning assets and improvement in CASA deposit mix to 64 percent from 60 percent in December 2019. Total deposits and current account deposit of the Bank rose by 23 percent and 33 percent respectively despite all challenges due to spread of COVID-19 pandemic.
To remain resilient against ensuing credit risk from economic slowdown and to counter potential delinquencies, the Bank also booked additional provisioning on prudent basis during the outgoing year.
During the year 2020, the Bank was also successful in completing the IPO of Pakistan's First Shariah Compliant and Listed Additional Tier-1 Sukuk, carrying the brand of 'Ehad Sukuk'. Total size of the Ehad Sukuk is Rs 2 billion. The issuance of this capital instrument has paved the way for BankIslami to enhance its financing portfolio and deposit base.
Timely support measures taken by the Government of Pakistan (GoP) and State Bank of Pakistan (SBP) effectively addressed the pressures emanating from pandemic on various businesses and households.
Considering gradual improvement in market appetite on the back of endeavours being made by Government and SBP to enhance private sector financing, the Bank is working on efficiently increasing its exposure towards rated Corporate clients, Government backed avenues, Auto Finance, Low Cost Housing Schemes, Agri Finance and FI placements.-PR
Copyright Business Recorder, 2021
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