BankIslami PakistanLimited (‘the Bank’ or ‘Bankislami’) announced its financial results for the year ended December 31, 2021.
Year 2021 proved to be a successful year for the Bank wherein the Bank not only crossed Rs. 300 billion landmark in Deposits by closing its Deposit book at Rs. 344.8 billion as at Dec 31, 2021, depicting a growth of 21.6% from last year, but it also crossed deposit per branch benchmark of Rs. 1 billion at the end of the year 2021. Moreover, the Bank also posted its highest ever profit after tax of Rs. 2.13 billion.
Vis-à-vis last year, BankIslami’s deposit base grew by 21% in 2021, which was mainly attributable to its aggressive deposit mobilization strategy pursued by the Bank to amplify its Current Account (CA) deposits. CA Deposit of the Bank went up by 36.9% and closed at Rs. 130.6billion, which in turn also elevated Bank’s CA composition to 37.9% at Dec 2021 from the level of 33.6% at Dec 2020.
With improvement in its deposit base, earning assets of the Bank also showed healthy growth whereby funded exposure was increased by means of financing to Corporate and Consumer segment and growth in Investment portfolio.
Consequently, Islamic Financing of the Bank increased by 39.2% whereas Investments registered growth of 31.1%. On account of increase in overall financing and endeavors made towards recoveries from delinquent portfolio, infection ratio of the Bank reduced to 8.7% with a coverage ratio of 85.1% at the end of Dec 2021 as compared to infection and coverage ratios of 12.1% and 82.7% respectively at the end of Dec 2020.
