BankIslami posts Rs251m profit after tax in 1st quarter 2019

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The Board of Directors (BoD) of BankIslami has approved the bank’s first quarter financial statements for the period ended March 31, 2019.

The bank has witnessed a promising start to the year 2019 and posted impressive results during the first quarter of the current year. The bank recorded operating profit before provisions of Rs866.973 million, which is nine times higher than the numbers reported for the same period last year.

Adopting a prudent approach, the bank recorded accelerated provisions against its delinquent portfolio and closed the pre-tax profit at Rs408.237 million; six times higher than the numbers reported for the corresponding period last year. Post-tax profit was recorded as Rs251.303 million.

Despite economic slowdown, the bank was able to grow its deposit base by 3.6pc and closed at Rs191 billion; while its asset base grew by 5.2pc. One of the major highlights of the financial results was the infection ratio which has reduced massively to 10.03pc from 11.88pc as at Dec 31, 2018. Further, the coverage ratio i.e. provision against non-performing portfolio has increased to 88.3pc from 70.97pc as at Dec 31, 2018, which is higher than the industry average of 83.2pc as reported in SBP’s Islamic Banking Bulletin for Dec 2018.

The bank has also announced on bourses that in order to provide impetus to its growth plan, the board has in principle agreed to consider the issuance of right shares by Rs1 billion during the year. Further, it has also approved the issuance of Additional Tier-1 Capital to the tune of Rs2 billion (inclusive of green-shoe option of Rs500 million). This would stage the bank to take various growth initiatives which would ultimately contribute towards the growth of overall Islamic banking industry.

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