BankIslami, one of Pakistan’s fastest-growing Islamic financial institutions, has announced a profit before tax (PBT) of PKR 13.9 billion for the year ended December 31, 2025. The Bank announced a cash dividend of PKR 1.25 per share (12.5%), bringing the total payout for the year to PKR 2.75 per share (27.5%).
The Bank’s non-funded income surged by 107% year-on-year, demonstrating strong diversification of revenue streams. Total income declined by 11% due to declining policy rates and compressed spreads; however, the contraction remained moderate relative to broader industry trends.
In 2025, BankIslami expanded its deposit base by over PKR 100 billion for the second time in a decade, closing the year at PKR 660 billion. This represents 18% year-on-year growth, mainly driven by a robust 35.2% increase in current accounts, elevating the CASA ratio to a record 71%.
During the year, BankIslami made several strategic investments to support its long-term expansion, including strengthening its digital infrastructure, expanding its branch network, and acquiring a 32-storey tower in Karachi, which is set to serve as the Bank’s new headquarters. These investments contributed to a 42% increase in operating expenses.
Prudent capital management remained a cornerstone of performance, with the Capital Adequacy Ratio (CAR) standing at a solid 16.6%, comfortably above the regulatory requirement. The Asset-to-Deposit Ratio stood at 48.8%, reflecting disciplined balance sheet deployment.
Asset quality continued to improve, with delinquent financing declining by 9.4% to PKR 21.9 billion, resulting in a reduction in the infection ratio from 7.4% to 6.8%.
The highlight of the year was being named Pakistan’s Best Islamic Bank at the Euromoney Islamic Finance Awards, along with several other accolades that further strengthened the Bank’s achievements and brand equity.
Commenting on BankIslami’s performance, President & CEO, Rizwan Ata, said, “2025 was a year of learning and opportunity. While the industry faced headwinds, it reinforced the importance of disciplined diversification across risks and investments.”
“As we step into 2026, our focus is to become stronger and more stable and continue contributing to the evolution of the broader industry. We remain committed to our purpose of Saving Humanity from Riba and to advancing Islamic banking as the first choice for customers across Pakistan,” he added.
BankIslami is currently operating over 560 branches across Pakistan and delivering a diverse range of Shariah-compliant banking products to its customers. The Bank is strategically expanding its presence across high-impact business areas, including Retail and Digital Banking, Cash Management, Investment Banking, Trade Finance, and Home Remittance, to capture emerging opportunities and enhance customer engagement. The Bank remains committed to delivering ethical, digitally empowered, and customer-centric financial services across its growing footprint.
