BankIslami’s consolidated profit up 253% in 6MCY23

BankIslami Pakistan Limited posted consolidated earnings of Rs5.1 billion for the first six months of year 2023, up over 253% from the profit-after-tax of Rs1.44 billion in the same period of the preceding year.

According to a notice sent to the Pakistan Stock Exchange (PSX) on Tuesday, earnings per share clocked in at Rs4.6 for the six-month period. The Board of Directors also announced a nil cash dividend for the half year ended June 30, 2023.

The increase in profit was led by sharp spike in profit/return earned on Islamic financing and related assets, investments and placements.

The net profit/return rose from Rs7.92 billion in 6MCY22 to Rs16.65 billion in 6MCY23, a robust increase of over 110%.

The fee and commission income earned by BankIslami in 6MCY23 amounted to Rs797.91 million, a 9% increase against Rs729.15 million earned in the same period last year.

The dividend income of the firm inched up from Rs12.56 million in 6MCY22 to Rs27.34 million in 6MCY23.

BankIslami foreign exchange income saw a marginal decline from Rs591.4 million to Rs584.6 million in 6MCY23.

However, the Islamic bank saw significant rise in its gain on securities, which jumped from just Rs18.73 million in 6MCY22 to Rs115 million in 6MCY23.

On the other hand, the other income earned by BankIslami declined significantly by 70% as it reduced to Rs107.39 million in 6MCY23 from Rs358 million in SPLY.

During 6MCY23, operating expenses of the firm amounted to Rs7.5 billion, up 36% against Rs5.5 billion in SPLY.

The firm reported a sharp hike in expenditure on worker welfare fund which jumped over 207% during the period. BankIslami spent Rs165.9 million under this head in 6MCY23 as compared to Rs53.9 million in 6MCY22.

Incorporated in Pakistan on October 18, 2004, BankIslami Pakistan Limited is engaged in the business of an Islamic Commercial Bank in accordance with the principles of Islamic Shariah.