JS Bank Limited has expressed its intention to acquire over 51% shares and control of Banklslami Pakistan Limited, it was learnt on Tuesday.

“On behalf of our client, JS Bank Limited, we, Next Capital Limited, hereby submit acquirer's public announcement of Intention to acquire more than 51% shares and control of Banklslami Pakistan Limited,” said Next Capital, appointed manager to the offer by JS Bank, in a notice to the PSX.

JS Bank already owns 7.79% shares in BankIslami Pakistan Limited and is now looking to acquire voting shares of the target company.

The public announcement of intention to acquire voting shares/ control of BankIslami is subject “to obtain the requisite regulatory approvals including fit and proper clearance from the State Bank of Pakistan”.

Last week, JS Bank Limited, after receiving approval from the central bank, acquired 86,316,954 ordinary shares, constituting 7.79% paid-up capital of BankIslami Pakistan Limited from Emirates NBD Bank PSJC on November 11, 2022.

As per its financial results for the quarter ended September 30, 2022, BankIslami achieved an operating profit before provision at Rs7.79bn, 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 Rs1.65 billion during the nine months, to close the total provision (net of reversals) for nine months ended September 30, 2022 at Rs2.25 billion.

Despite additional provisions and rise in tax rates, profit after tax of the BankIslami for nine months closed at Rs2.85 billion, 53.7% higher than the profit after tax of same period last year.