BankIslami Achieves Remarkable 255% Growth in Profit After Tax During First Half of 2023
The first half of 2023 has marked its significance for BankIslami, as it attained a notable milestone by securing a ‘AA-’ long term entity rating assigned from PACRA. This rating upgrade acknowledges the outstanding performance the Bank has consistently delivered in recent periods. Further, the Bank also takes pride in the distribution of its maiden cash dividend to its valued shareholders during the same period.
The Bank has unveiled its half-yearly results for 2023, showcasing robust expansion in its operational performance. Notably, the Bank’s pre-tax profit for the period stands at Rs. 8.3 billion, highlighting a remarkable surge of 208% compared to the corresponding period last year. The post-tax profit has reached to Rs. 5.1 billion, representing an impressive leap from the Rs. 1.4 billion achieved in the first half of 2022, signifying a remarkable growth of 255%. Moreover, the Bank has demonstrated significant headway in cost-efficiency ratio, as evidenced by the improvement in the cost-to-income ratio from 57.9% to 41.9% on a year-on-year basis.
The Bank’s deposit book exhibited 11.3% growth during first half of 2023, with current accounts showing a 7.7% increase, while maintaining a healthy CASA (Current Account & Savings Account) mix of 64.3%. The Bank has achieved an expansion of 20.93% in its financing portfolio. This strategic move has consequently elevated the Advance to Deposit ratio (gross) from 53% in December 2022 to 57% by the close of June 2023. Furthermore, given the current economic outlook, the Bank has prudently enhanced provisions against doubtful debts to improve coverage ratio from 96% at the end of December 2022 to 100% as at the end of June 2023.
The diligent expansion of the credit book and the unwavering commitment to recover delinquent portfolio have resulted in a notable decline in the infection ratio. Specifically, this ratio has decreased from 9.0% to 7.9% during the first half of 2023. With increased profitability and an enhanced credit risk profile, the Bank’s Capital Adequacy Ratio (CAR) has reached an impressive 19.14%, well above the regulatory threshold of 11.50%.
Looking ahead, the Bank’s growth strategy will focus on developing its deposit base, expanding its branch network which has reached to 400 branches and enhancing the overall customer experience through the strategic use of technology and expanding its digital presence.