In comparison to the previous year, BankIslami Pakistan Limited’s financial results for 2022 demonstrate a tremendous increase in profit before tax of 142%, reaching Rs. 8.23 billion as opposed to Rs. 3.39 billion. Additionally, the bank announced its first-ever 10% dividend to its shareholders.
The bank’s remarkable results were made possible by its strong overall performance, to which nearly all of its segments made important contributions. Deposits closed at Rs. 415.91 billion, representing a significant increase of Rs. 71.1 billion and growth of 20.63%, surpassing the Rs. 400 billion milestones.
Despite an increase in policy rates, the bank’s emphasis on launching cutting-edge products, growing its sales force, and aggressive marketing tactics helped to explain the 50% growth in deposits from the current account.
The bank’s financing book expanded by 12.20% (gross) notwithstanding a decrease in national economic activity. Despite regulatory actions to reduce the demand for auto finance, the proportion of consumer financing in the total financing portfolio remained at 23.19%.
Also, the bank added an extra general provision of Rs. 2.15 billion throughout the year, bringing the coverage ratio for past-due accounts up to 96.14%. The bank’s Capital Adequacy Ratio (CAR) increased to 17.92%, significantly over the legal limit of 11.50%, as a result of the better credit risk profile.
The bank remained dedicated to making beneficial contributions to the economy and society notwithstanding the current economic climate. The bank worked closely with other organizations to establish a “Tent City” for flood victims and gave flood victims across the country its full assistance.
The bank’s decision to give monthly ad hoc allowance to its lower and middle cadre employees to deal with the effects of the alarming inflation in the country is evidence of its dedication to social responsibility and enhanced financial performance.
The bank’s future priorities include extending its branch network, enhancing customer experiences generally through the use of technology, boosting its online presence, and creating low-cost deposit products.
The bank’s financial performance for 2022 as a whole shows its strong commitment to development and social responsibility.
