BankIslami Posts Staggering 197% Profit Growth in 9 Months of 2023

In the year 2023, BankIslami posted an astounding after-tax profit of Rs. 8.47 billion for the nine-month period that ended on September 30, 2023, up 197 percent compared to the same period last year. Along with the result, the bank also announced an interim cash dividend of Rs. 1.75 per share. The Bank exhibited impressive cost efficiency, evident in the reduced cost-to-income ratio of 38.14 percent during the period, compared to 52.74 percent in the same period last year. The Bank’s net assets surged by 23.6 percent due to a strategic allocation of excess liquidity into secured investments. This move propelled the investment portfolio from Rs. 179.74 billion in December 2022 to Rs. 276.16 billion in September 2023, marking a healthy growth of 53.6 percent. Simultaneously, the Bank’s financing portfolio experienced a modest 1.2 percent growth, influenced by the current economic climate, high policy rates, and stringent regulatory measures on consumer financing. In the face of ongoing challenges in the country, the Bank prudently established a robust buffer of provision, taking coverage against the delinquent portfolio to 102 percent by the end of the nine-month period, and acting as a shock absorber. The Bank also saw an 11.1 percent rise in total deposits, maintaining a favorable CASA mix of 61 percent. Bolstered by heightened profitability and an improved credit risk profile, the Bank’s Capital Adequacy Ratio (CAR) reached an impressive 22.42 percent, well above the regulatory threshold of 11.50 percent.