BankIslami continues to demonstrate strong financial performance, reporting a notable 33.6% increase in profit before tax for the nine months ending September 2024. The bank’s profit before tax reached Rs. 19.9 billion, while post-tax profit surged to Rs. 10.2 billion, reflecting a robust 20.5% growth despite challenging market conditions.
A significant highlight of this period was the substantial rise in non-fund-based income (NFI), which grew by nearly Rs. 1.3 billion compared to the same period last year. The NFI ratio to total income improved from 7% to 9.4%, underscoring the bank’s strategic focus on diversified revenue streams.
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In response to ongoing economic uncertainty, BankIslami strategically expanded its investment portfolio, which now stands at Rs. 346.7 billion. The gross financing portfolio, however, saw a controlled reduction of 21.5%, settling at Rs. 199.5 billion. This adjustment led to an increase in the infection ratio from 9% at the end of 2023 to 12.7% in the current period.
The bank’s deposit portfolio experienced substantial growth, rising by 19.5% compared to the period ended September 30, 2023, and by 5.6% compared to December 31, 2023. This growth was largely attributed to a 12.2% increase in Term Deposits since December 2023, providing stability in the deposit book. The CASA ratio remained strong at 60%, reflecting growing consumer confidence and enhanced liquidity.
BankIslami’s Capital Adequacy Ratio (CAR) stands at an impressive 29.16%, well above the regulatory threshold of 11.50%, highlighting its strengthened credit risk profile.
Looking forward, BankIslami is committed to further growth by expanding its deposit base, leveraging its extensive network of over 500 branches, and enhancing customer experience through targeted technological advancements and an expanded digital footprint.
