KARACHI: BankIslami continues its growth trajectory, delivering substantial returns to its shareholders with a remarkable 66.2 percent increase in profit before tax for the half-year ended 2024. The Bank’s profit before tax reached Rs13.8 billion, while its post-tax profit surged to Rs7.1 billion, reflecting a robust 32.1 percent growth. Despite challenging market conditions, BankIslami remains steadfast in its commitment to financial excellence.
A key highlight of this period was the significant rise in Non-Fund-based Income (NFI), which grew by nearly a billion rupees compared to the same period last year. The NFI ratio to total income also improved, rising to 10.5 percent from 8.9 percent in the previous year, underscoring the Bank’s strategic focus on diversified revenue streams.
Reflecting its solid financial performance, BankIslami’s Board of Directors has declared an interim dividend of Rs1.5 (15 percent) for the first half of 2024. This decision emphasises the Bank’s commitment to valuable shareholders and its confidence in continued growth.
In response to ongoing economic uncertainty, BankIslami strategically expanded its investment portfolio while thoughtfully optimising its financing portfolio. The investment portfolio reached Rs346.5 billion, while the gross financing portfolio saw a controlled reduction of 12.8 percent, settling at Rs221.5 billion. This strategic adjustment led to an increase in the infection ratio from 9 percent at the end of 2023 to 10.9 percent in the current period.
The Bank’s deposit portfolio experienced significant growth, rising by 18.95 percent compared to the period ended June 30, 2023, and by 5.39 percent compared to December 31, 2023. This growth was largely driven by a 7 percent increase in Current Accounts (CA) since December 31, 2023, which boosted the Bank’s CA ratio from 37.32 percent to 37.88 percent. The CASA ratio also remained strong, exceeding 60 percent, reflecting growing consumer confidence, enhanced liquidity, and a strategic emphasis on expanding trade finance and other business avenues.
With heightened profitability and a strengthened credit risk profile, BankIslami’s Capital Adequacy Ratio (CAR) stood at an impressive 24.83 percent, well above the regulatory threshold of 11.50 percent.
Looking ahead, BankIslami is committed to further strengthening its growth by expanding its deposit base, leveraging its extensive network of over 490 branches, and enhancing the customer experience through targeted technological advancements and a broader digital impact.
Copyright Business Recorder, 2024
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