CY2023: BankIslami unveils after-tax profit of Rs11.04bn

KARACHI: BankIslami has announced its remarkable financial results for the year ended December 31, 2023. The bank reported a staggering after-tax profit of Rs 11.04 billion, showcasing its exceptional performance. Net profit and return surged by an impressive 97 percent, while profit after tax augmented by 149 percent.

The bank has declared a final cash dividend of 10 percent, which is in addition to the interim dividend of 17.5 percent announced in Q4 2023. This brings the total cash dividend payout to Rs 2.75 per share for the year of 2023 which reaffirms the bank’s unwavering commitment to deliver a value to its esteemed shareholders.

There has been a phenomenal growth in the bank’s net asset of 37.9 percent, due to its strategic allocation of excess liquidity into secured investments. This move propelled the investment portfolio from Rs 179.74 billion in December 2022 to an impressive Rs 314.08 billion in December 2023, marking a healthy growth of 74.7 percent.

Meanwhile, the bank’s financing portfolio witnessed a modest growth of 14.3 percent, influenced by the current economic condition, high policy rates, and stringent regulatory measures on consumer financing.

Despite the challenges, BankIslami prudently established a buffer of provision, ensuring a coverage of 104.2 percent against delinquent portfolio. This will act as a strong shock absorber, safeguarding the bank’s stability.

The bank also experienced a remarkable growth of 25.6 percent rise in total deposits, maintaining a favorable CASA mix of 62.2 percent. Boost by heightened profitability and an improved credit risk profile, BankIslami’s Capital Adequacy Ratio (CAR) has reached 23.79 percent, well above the regulatory threshold of 11.50 percent.

Looking ahead, BankIslami aims to strengthen its growth trajectory by expanding its deposit base, and enriching the customer experience by further growing its footprint. With its extraordinary financial triumph, BankIslami is poised to continue its success story and make a significant impact in the financial industry

With a network of 440+ 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.

Copyright Business Recorder, 2024