BankIslami crossed Rs300b deposit landmark with PAT of Rs1.16b

16
Observer Report
Karachi

HY’21 proved to be a prolific financial cycle for BankIslami as the Bank crossed Rs. 300 Bn bench-mark for its Deposit book.

This landmark was achieved as a result of constant efforts made by the Bank to strengthen its distribution structure and ‘feet on street’ field force which proved to be piv-otal in enhancing its deposit base, particularly the low cost CASA deposits.

When compared with balances at Jun’20, the Bank’s overall Deposit grew by 26% at Jun’21 (growth of 7% from Dec’20) while CASA deposits witnessed an increase of 34% at Jun’21 (increase of 16% from Dec’20).

Out of this increase, the growth in Current Deposits was recorded at 39% (increase of 18% from Dec’20).

The continuation of CASA growth trend will play an essential role in enhancing Bank’s net income margin (NIM) going forward.

On the credit side, the Bank disbursed funds to cor-porate entities and retail segment while investment book was increased through investments in GoP Sukuks to improve overall credit risk profile of the Bank.

BankIslami having the largest portfolio in Housing Finance has successfully achieved SBP’s mandatory targets for Housing and Construction and the Gov-ernment Markup Subsidiary Scheme (MPMG).

The Bank provides facilities including housing construc-tion, purchasing and renovation to both Resident & Non-Resident Pakistani.

While the Bank witnessed growth in its earning assets and low cost CASA deposits, net spreads of the Bank reduced by 25.4% mainly attributable to outweighing impact of downward repricing on as-sets vis-à-vis repricing of expense bearing liabilities.

However, BankIslami’s non-funded income rose by 13% based on growth sustained via service based fee income earned through its Digital Delivery Channel, Trade Business, Consumer Finance and Wealth Management desk.

Previous articleBitcoin nears $48,000 level as cryptos make gains
Next articlePrivatisation Commission seeks applications for PSM’s revival