BankIslami 9M20 Profit After Tax grows by 81%

Lahore (Muhammad Yasir) The Board of Directors of BankIslami Pakistan Limited (‘The Bank’ or ‘BankIslami’) in their meeting held on October 29, 2020 in Karachi approved the Bank’s financial results for the nine months ended September 30, 2020.

BankIslami posted profit after tax of Rs. 1.76 Bn during 9M20, depicting a growth of 81% vis-à-vis same period last year. Similarly, operating profit of the Bank has increased to Rs. 4.79 Bn i.e. 72% growth from same period last year. The growth in profit was achieved on the back of rise in Core CASA deposits by 20%, persistent growth in earning assets, along with improvement in net spreads and cost to income ratio. Total Deposit base of the Bank grew by 11%, while total Assets grew by 8% during the nine months of 2020. Keeping in view the credit risks emanating from COVID-19, the Bank has recorded additional provisioning so as to improve the risk appetite of the Bank.

To fortify its overall capital adequacy, the Bank successfully completed the issuance Pakistan’s first ever Listed Islamic Additional Tier-I Capital Sukuk (ADT-1 Sukuk’) during the current year. The instrument has been branded as ‘Ehad Sukuk’ which is consistent with BankIslami’s commitment to offer authentic Islamic Banking products and provide Halal returns to its customers. The total issue size of this ADT-1 Sukuk was Rs. 2,000 Mn.

BankIslami being a responsible institute actively participated in various schemes launched by Government of Pakistan and State Bank of Pakistan to provide relief to masses and enhancing the country’s capacity to combat the adversities caused due to COVID-19. Additionally, pursuant to the deferment related relief schemes announced by SBP, the Bank, remain engaged with its customers so that they can utilize these packages and get financial assistance against challenges ensuing from COVID – 19.

In order to deal with current challenges along with SBP supportive monetary policy stance, the Bank will continue with a strategy to enhance its CASA deposits base so as to generate stable net revenue stream. As the economic indicators are gradually improving, the Bank is working on building a steady financing book through its Corporate, SME, Agri and Retail clientele.