KARACHI: Bank Islami Pakistan Limited (PSX: BIPL) reported a 37.34% year-on-year drop in its profit after taxation for the half year ended June 30, 2025. The bank posted a profit of Rs4.41 billion compared to Rs7.04 billion in the same period last year.
Earnings per share (EPS) also decreased by 37.35%, falling to Rs3.98 from Rs6.35. The bank declared an interim cash dividend of Rs1.5 per share, representing 15% for the first half of FY2025.
Total income declined by 4.90% to Rs23.42 billion, while operating expenses surged by 47.15%, reaching Rs15.01 billion. As a result, profit before taxation dropped 34.80% to Rs8.96 billion, compared to Rs13.74 billion in the same period in 2024.
Despite the overall decline, fee and commission income rose 63.60% to Rs1.78 billion, and dividend income climbed 77.74% to Rs111.15 million. Gain on securities also saw a sharp increase of 533.49%, totaling Rs2.39 billion, which helped lift total other income by 90.58% to Rs4.90 billion.
On the other hand, foreign exchange income plummeted by 82.48%, falling to Rs246.61 million. However, income from Shariah-compliant forward foreign exchange contracts turned positive at Rs287.59 million, compared to a loss of Rs445.88 million in the same period last year.
The bank, which is now in its second year of being managed by JS Bank group, has faced operational challenges amid its transition. Since JS Bank took over management in 2023, there has been a strategic focus on streamlining operations, improving profitability, and enhancing customer service. However, these efforts have been met with mixed results so far, reflected in the bank’s declining profitability in the first half of 2025.
At the close of market trading today, Bank Islami’s stock price stood at Rs37.79, down by Rs0.69 or 1.79%, reflecting the market’s reaction to the bank’s profit decline and rising operational costs.