Security Investment Bank lays out plans for Shariah compliance conversion

Security Investment Bank Limited (SIBL), one of Pakistan’s smaller publicly listed investment banks, reported modest earnings growth for the calendar year 2024, supported by a strong investment performance and early signs of success in its consumer financing strategy. The bank also revealed ambitious plans to fully transition into a Shariah-compliant institution, marking a potential turning point in its strategic direction and market positioning.

For CY24, SIBL posted earnings per share (EPS) of Rs1.35, up marginally from Rs1.31 in the previous year. In 1QCY25, EPS stood at Rs0.26, slightly below the Rs0.30 posted in the same period last year, reflecting a more cautious start to the year.

Total revenue for CY24 came in at Rs126 million, a 9% decline from Rs139 million in CY23, driven by lower income from financing and reduced returns on securities. However, gains on the sale of investments rose sharply to Rs44 million from Rs15 million — a 193% increase — providing much-needed support to the bottom line. Administrative expenses were brought down significantly, by 32% year-on-year, helping sustain operating profitability.