BankIslami full-year profit soars 137pc

KARACHI: BankIslami Pakistan Limited, one of the country’s leading Islamic banks, on Wednesday reported a 137 percent surge in its profit after tax for the year 2023, boosted by a strong growth in its core banking income.

The bank said in a statement to Pakistan Stock Exchange that its profit after tax rose to Rs10.61 billion in 2023, from Rs4.47 billion a year earlier. Its earnings per share increased to Rs9.57 , from Rs4.04 in 2022.

The bank also announced an interim cash dividend of Re1 per share, or 10 percent, for the year ended Dec. 31, 2023, in addition to the interim cash dividend of Rs1.75 per share, or 17.5 percent, already paid.

The bank's profit/return earned jumped 100.4 percent to Rs92.76 billion in 2023, from Rs46.35 billion in 2022, driven by a higher net spread earned and a significant increase in non-funded income.

The net profit for the first half of 2024 stood at Rs40.18 billion, up 97 percent from the same period last year.

The income declined 8 percent to Rs3.31 billion in 2023, from Rs3.6 billion in 2022. The bank’s fee and commission income rose 24.4 percent to Rs1.8 billion in 2023, from Rs1.45 billion in 2022, reflecting its diversified product portfolio and enhanced customer base. The tax expense increased 150.7 percent to Rs9.48 billion in 2023, from Rs3.78 billion in 2022.

Nishat Mills H1 profit falls 30pc

Nishat Mills Limited, Pakistan's largest textile company, reported a 30 percent drop in its half-yearly profit on Wednesday, as higher cost of sales and finance weighed on its margins.

The company posted a profit after tax of Rs5.96 billion for the six months ended Dec. 31, 2023, down from Rs8.5 billion in the same period a year earlier, according to a notice sent to the Pakistan Stock Exchange.

Earnings per share fell to Rs13.72 from Rs21.33.

Nishat Mills, which produces yarn, linen and other products from raw cotton and synthetic fiber, said its net sales rose 9.4 percent to Rs102.8 billion, driven by higher demand and prices.

However, its cost of sales increased 11.1 percent to Rs86.2 billion, resulting in a marginal 2 percent increase in gross profit to Rs16.69 billion. The company's gross margin declined to 16.2 percent from 17.4 percent a year ago.

Operating expenses rose 8 percent to Rs7.8 billion, while finance cost more than doubled to Rs5.3 billion.

HABIBMETRO posts 88pc profit growth

HABIBMETRO Bank Ltd reported an 88 percent jump in its pre-tax profit for 2023, driven by higher core earnings and improved margins.

The bank said on Wednesday its profit before tax rose to Rs52 billion for the year ended Dec. 31, from Rs27.6 billion a year earlier.

Its net interest income, the difference between interest earned and interest paid, surged 76 percent to Rs67.8 billion , while its net interest margin, a key measure of profitability, improved to 5.8 percent from 4.1 percent.

The bank's total deposits crossed the Rs1 trillion mark, growing 15 percent year-on-year, with current and savings accounts (CASA) accounting for 74 percent of the total. Its gross advances declined 4 percent to Rs439 billion, with a non-performing loan ratio of 4.5 percent.

The bank's total assets increased 11 percent to Rs1.56 trillion, while its net equity stood at Rs93.28 billion, with a capital adequacy ratio of 18.26 percent.

HABIBMETRO announced a final cash dividend of Rs5.5 per share, in addition to the interim dividend of Rs5 per share, taking the total payout for the year to Rs10.5 per share.

"We are grateful for the blessings of the Almighty as we have surpassed PKR 1 trillion in deposits and achieved a 71 percent increase in profitability this year," said Khurram Shahzad Khan, president and chief executive officer of HABIBMETRO.

"Our success is a testament to the trust that our customers have placed in us and the dedicated effort of our team.

Going forward in 2024, we remain committed to serving our customers with a comprehensive suite of banking solutions and anticipate a continued trajectory of growth with a

focus on technology." he added.

Cnergyico PK narrows loss in H1

Cnergyico PK Limited reported a smaller loss for the first half of the fiscal year 2024, as lower costs and improved margins offset a slight decline in revenue.

The company posted a loss after tax of Rs1.92 billion for the six months ended Dec. 31, 2023, compared with a loss of Rs5.65 billion a year earlier, according to a statement filed to the Pakistan Stock Exchange on Wednesday.

Revenue fell 0.71 percent year-on-year to Rs99.85 billion. The cost of sales dropped 11.5 percent to Rs95.99 billion, resulting in a significant improvement in gross margins to 3.87 percent from a negative 7.88 percent in the same period last year.

Other income plunged 80.82 percent to Rs1.33 billion, while administrative and other expenses rose 26.72 percent and 44.23 percent respectively, to Rs744.04 million and Rs1.51 billion.

The company's finance cost surged 67.09 percent to Rs4.77 billion, mainly due to higher interest rates and borrowings.

The company also paid a higher tax of Rs190.09 million, compared with Rs89.54 million in the corresponding period of last year.