BankIslami Pakistan Limited (‘the Bank’ or ‘BankIslami’) announced its financial results for the quarter ended September 30, 2022. For nine months, BankIslami closed operating profits before provision at Rs. 7.79 Bn, 194% higher than same period last year.
The growth in profitability was achieved primarily due to increase in volumes and yields of earning assets while growth in non-funded income also played pivotal role in improving the profitability.
Given the current economic scenario, as a precautionary measure, the Bank recorded additional general provision of Rs. 1.65 Bn during the nine months, to close the total provision (net of reversals) for nine months ended September 30, 2022 at Rs. 2.25 Bn.
Despite additional provisions and rise in tax rates, Profit after tax of the Bank for nine months closed at Rs. 2.85 Bn, which is 53.7% higher than the profit after tax of same period last year.
Deposits of the Bank grew to Rs. 388.1 Bn, a 12.6% growth during the nine months of 2022 and
25.5% growth since September 2021. Funds generated through growth in deposits was directed towards financing and investing activities. Financing side grew to Rs. 205.3 Bn, depicting 13.3% growth during the nine months of 2022 and 31.9% growth since September 2021.
While the Bank grew its Financing books, NBF ratio reduced from 8.7% to 8.1%. With increase in provisions (including general provision), coverage ratio improved from 90% to 97% as at September 2022.
With rise in profitability and improved credit risk profile of the Bank, Capital Adequacy Ratio (CAR) of the Bank closed at 15.92% as compared to 14.15% as at December 2021. On investment front, funds were particularly directed towards GoP Ijarah Sukuk, which resulted in growth of 11.6% in investment portfolio during the nine months of 2022.
To counter the impact of unusual inflation in the country, BankIslami has announced monthly inflation allowance for its lower and middle cadre employees.
Recent floods in the country have had huge impact on the lives of the masses, especially those in the areas affected by the floods. BankIslami is at the forefront in helping the flood victims.
The Bank conducted various drives and awareness campaigns for collection/distribution of donations and goods, moreover various medical camps were also organized in various parts of Sindh in collaboration with other organizations where apart from free medical treatments, medications were also provided.
