Home Islamic BankIslami posts profit after tax Rs251m in Q1

BankIslami posts profit after tax Rs251m in Q1

Staff Reporter

Karachi

The Board of Directors of BankIslami has approved the Bank’s First Quarter Financial Statements for the period ended March 31, 2019 in their meeting held here.
The Bank has witnessed a promising start of the year 2019 and posted impressive results during first quarter of the current year. The Bank recorded operating profit before provisions of Rs866.973 million which is 9 times higher than numbers reported for the same period last year. Adopting a prudent approach, the Bank recorded accelerated provisions against its delinquent portfolio and closed the pre-tax profit of Rs. 408.237 million; 6 times higher than numbers reported for corresponding period last year. Post-tax profit was recorded as Rs. 251.303 million.
Despite economic slowdown, the Bank was able to grow its deposit base by 3.6% and closed at Rs. 191 billion; while its asset base grew by 5.2%. One of the major highlights of the financial results was the infection ratio which has reduced massively to 10.03% from 11.88% as at Dec 31, 2018. Further, the coverage ratio i.e. provision against non-performing portfolio has increased to 88.3% from 70.97% as at Dec 31, 2018 which is higher than the industry average of 83.2% as reported in SBP’s Islamic Banking Bulletin for Dec 2018.
The Bank has also announced on bourses that, to provide impetus to its growth plan, the Board of the Bank has in principle agreed to consider the issuance of right shares by Rs. 1 billion during the year. Further, it has also approved the issuance of Additional Tier-1 Capital to the tune of Rs. 2 billion (inclusive of green-shoe option of Rs. 500 million). This would stage the Bank to take various growth initiatives which would ultimately contribute towards the growth of overall Islamic banking industry.