BankIslami’s half-year profit up 38pc

KARACHI: BankIslami Pakistan Limited (BIPL) has reported a 38 per cent increase in its half-year net profit due to increased profit earned income.

In a statement to the Pakistan Stock Exchange (PSX), the bank reported a net profit of Rs7.1 billion for the half-year that ended June 30, up from Rs5.1 billion during the same period the previous year.

The bank also announced an interim cash dividend of Rs1.5 a share.

Earnings per share came in at Rs6.37, compared with Rs4.60 per share during the same period last year.

The bank said its profit earned income for the half-year rose to Rs58.72 billion, compared with Rs39.16 billion during the same period a year earlier. Profit expensed income also remained higher at Rs36.74 billion from Rs22.511 billion a year ago.

For the quarter that ended June 30, the bank reported a net profit of Rs3.85 billion, up from Rs3.31 billion during the same quarter last year.

EPS for the quarter was recorded at Rs3.47 against Rs2.98 a share last year.

In a statement on Tuesday, the bank said a key highlight of this period was the significant rise in non-fund-based income (NFI), which grew by nearly a billion rupees compared to the same period last year.

The NFI ratio to total income also improved, rising to 10.5 per cent from 8.9 per cent in the previous year, underscoring the bank’s strategic focus on diversified revenue streams.

The investment portfolio reached Rs346.5 billion, while the gross financing portfolio saw a controlled reduction of 12.8 per cent, settling at Rs221.5 billion. This strategic adjustment led to an increase in the infection ratio from 9.0 per cent at the end of 2023 to 10.9 per cent in the current period.

Looking ahead, BankIslami is committed to further strengthening its growth by expanding its deposit base, leveraging its extensive network of over 490 branches, and enhancing the customer experience through targeted technological advancements and a broader digital impact.