Impressive financial statistics for the first quarter of 2023 were released by BankIslami Pakistan Limited, who reported a 262% increase in earnings before tax over the same time in the previous year. The bank’s profit after tax was Rs. 1.79 billion, up 244% over the same time the previous year.
The bank credited the growth of its financing book by 19.6% in the first three months of the year to the efficient use of excess liquidity in profitable Shariah-compliant channels. During the same time period, the bank’s investment portfolio also increased by 11.9%.
Additionally, the bank’s efforts to recover past-due exposures led to a drop in infection ratio in the first quarter of 2023 from 9.0% to 8.0%. The cost to income ratio increased from 49.8% in 2022 to 47.9% for the quarter ending in March 2023 as a result of the increase in earnings.
Although the bank’s deposit book shrank by 1.2%, the bank is confident that an improved CASA mix will help it grow. The bank’s Capital Adequacy Ratio (CAR) was 17.9%, which is much higher than the regulation limit of 11.50%.
BankIslami is in the process of listing its Additional Tier-1 Sukuk (Ehad Sukuk 2) worth Rs. 1 billion in order to strengthen its capital foundation and asset base. The bank has already finished the 850 million rupee Pre-IPO process.
By utilising technology and growing its digital footprint, BankIslami intends to concentrate on developing its branch network, expanding its deposit book, and enhancing the general customer experience.
