BankIslami Reports 66.2% Surge in Half-Year Profit, Declares Interim Dividend
BankIslami Pakistan continues to demonstrate robust growth, reporting a substantial 66.2% increase in profit before tax for the first half of 2024, amounting to Rs. 13.8 billion. The bank’s post-tax profit also surged by 32.1%, reaching Rs. 7.1 billion, highlighting its resilience and strategic focus amid challenging market conditions.
One of the standout achievements during this period was the significant rise in non-fund-based income (NFI), which grew by nearly Rs. 1 billion compared to the same period last year. The NFI ratio to total income improved notably, rising to 10.5% from 8.9% in 2023, underscoring BankIslami’s commitment to diversifying its revenue streams.
In recognition of its solid financial performance, BankIslami’s Board of Directors has declared an interim dividend of Rs. 1.5 per share (15%) for the first half of 2024. This decision reflects the bank’s ongoing commitment to delivering value to its shareholders and its confidence in sustaining its growth trajectory.
Amidst ongoing economic uncertainty, BankIslami has strategically expanded its investment portfolio while optimizing its financing portfolio. The bank’s investment portfolio grew to Rs. 346.5 billion, while the gross financing portfolio saw a controlled reduction of 12.8%, settling at Rs. 221.5 billion. This strategic adjustment, however, led to an increase in the infection ratio from 9% at the end of 2023 to 10.9% in the current period.
The bank’s deposit portfolio also experienced significant growth, rising by 18.95% compared to the period ended June 30, 2023, and by 5.39% compared to December 31, 2023. This growth was largely driven by a 7% increase in Current Accounts (CA) since December 2023, boosting the CA ratio from 37.32% to 37.88%. The CASA ratio remained strong, exceeding 60%, reflecting growing consumer confidence, enhanced liquidity, and a strategic emphasis on expanding trade finance and other business avenues.
BankIslami’s Capital Adequacy Ratio (CAR) stood at an impressive 24.83%, well above the regulatory threshold of 11.50%, indicating heightened profitability and a strengthened credit risk profile.
Looking ahead, BankIslami plans to further bolster its growth by expanding its deposit base, leveraging its extensive network of over 490 branches, and enhancing customer experience through targeted technological advancements and a broader digital impact.
Despite the positive financial results, BIPL’s scrip at the bourse closed at Rs. 23.76, down 1.12% or Rs. 0.27, with 1.36 million shares traded on Tuesday.
