BankIslami Announced 142% Growth in Profit Before Tax and First Ever Dividend Profit after tax closed at Rs. 4.44 billion as compared to Rs. 2.13 billion closed during last year i.e. growth of Rs. 108% despite significant increase in tax rates.

BankIslami Announced 142% Growth in Profit Before Tax and First Ever Dividend

LAHORE ( Web News )

BankIslami Pakistan Limited (‘the Bank’ or ‘BankIslami’) announced its financial results for the year ended December 31, 2022 declaring a remarkable growth of 142% in profit before tax i.e. Rs. 8.23 billion as compared to Rs. 3.39 billion during last year. Profit after tax closed at Rs. 4.44 billion as compared to Rs. 2.13 billion closed during last year i.e. growth of Rs. 108% despite significant increase in tax rates. Year 2022 has been a great success for BankIslami, where it not only achieved highest ever profitability, but also announced its first ever dividend of 10% to its shareholders. This is a result of all round performance of the Bank where almost all of its segments have contributed very well. This deposits surpassed Rs. 400 billion landmark and closed at Rs. 415.91 billion, depicting a prominent rise of Rs. 71.1 billion and growth of 20.63%.

Despite increase in policy rates, around 50% of the increase in deposits was contributed by Current Account. This was outcome of the Bank’s all out efforts in introducing new and innovative products, expanding its sales team across the country and pursuing aggressive marketing initiatives. The Bank also seized the opportunity of rising policy rate scenario by offering attractive term deposit products which enabled healthy growth of 27.5% (Rs. 29.72 billion) in term deposits.

Despite slowdown in economic activities at country level, the Bank was able to achieve growth of 12.20% in its Financing book (gross). Composition of Consumer financing in overall financing portfolio remained at 23.19% despite regulatory measures to curb the demand of auto financing. Financing to deposit ratio (ADR – gross) plunged to 52.98% as at December 31, 2022. Infection ratio of the Bank as at December 31, 2022 increased to 9.02% from 8.7% as compared to last year due to classification of certain corporate accounts. In view of prevailing economic situation, the Bank has recorded an additional general provision of Rs. 2.15 billion during the year, which improved the coverage ratio against delinquent accounts to 96.14% as compared to 89.57% at the end of last year.

The Bank deployed its surplus liquidity mainly in GoP Ijarah Sukuks, which resulted in considerable growth of 43.98% in investment portfolio and closed investment book at Rs. 179.74 billion.

With rise in profitability and improved credit risk profile of the Bank, Capital Adequacy Ratio (CAR) of the Bank improved to 17.92%, well above the regulatory threshold of 11.50%, while it stood at 14.15% at the end of last year.

The Bank has declared its first ever dividend to its shareholders of Re. 1 per share (10%) subject to approval of the shareholders in its upcoming Annual General Meeting.

Going forward, in order to continue this growth trajectory, the Bank will focus on increasing its branch network, improving the overall customer experience through leveraging technology, expanding its digital footprint and developing low cost deposit products.

In the recent hard times, the Bank stood firmly with its employees to cope with the impact of daunting inflation in the country and provided monthly adhoc allowance for its lower and middle cadre employees. The Bank being a socially responsibly entity, remained committed in making constructive contributions to the economy and society. In this respect, the Bank provided utmost support to flood victims in the country and set up a ‘Tent City’ for flood victims in collaboration with other entities. Besides this, the Bank also released emergency funds to different NGOs, distributed ration, medicines, tents, facilitated setting up medical camps and conducted other relief activities.