KARACHI
\nBankIslami Pakistan Limited (\u2018the Bank\u2019 or \u2018Bankislami\u2019) announced its financial results for the quarter ended March 31, 2022. Underpinned by growth in customer base, increase in income levels and improvements in cost efficiency; BankIslami\u2019s underlying operating profit before provisioning for 1Q22 registered an increase by 95.8% i.e. increase from Rs. 684 Mn recorded during 1Q21 to Rs. 1,339 Mn during 1Q22.
\nWith respect to its balance sheet, BankIslami had a robust start to the year 2022 wherein it continued its strategy to improve its deposit mix and deployment of liquidity towards profitable Shariah compliant avenues. Consequently, Bank\u2019s Current Account composition improved from 39.0% in Dec\u201921 to 40.4% in Mar\u201922. Likewise, the Bank diverted its asset mix towards better yielding corporate and consumer segments which was in line with increase in domestic demand.
\nAs a result, the net Islamic Financing of the Bank grew by 8.2%, whereas a decline of 23.9% was witnessed in its treasury placements.
\nOwing to growth in credit book and persistent recovery efforts against delinquent exposures, infection ratio reduced from 8.7% in Dec\u201921 to 8.1% in Mar\u201922 with an improved coverage ratio (including general provision) of 91.4% in Mar\u201922 versus 89.6% in Dec\u201921.
\nTo improve overall credit risk profile, the Bank booked additional provisioning against its existing and potential delinquencies during the 1Q22. Despite recording additional provisioning, the Bank posted Profit After Tax amounted to Rs. 522 Mn for the quarter ended March 31, 2022, depicting a growth of 33.9% from PAT of Rs. 390 Mn posted during same period last year.
\nGoing forward, the Bank will remain poised towards enhancing its Current Account Base; increasing its trade based business turnover; and expanding its Corporate, SME, Auto and Agri finance book backed by its dynamic risk management capabilities. Moreover, to reinforce BankIslami\u2019s capital structure and to fortify its asset base, the Bank has also planned further issue of an Additional Tier-1 Sukuk to the tune of Rs. 1 billion, subject to regulatory approvals.<\/p>\n","protected":false},"excerpt":{"rendered":"
KARACHI BankIslami Pakistan Limited (\u2018the Bank\u2019 or \u2018Bankislami\u2019) announced its financial results for the quarter ended March 31, 2022. Underpinned by growth in customer base, increase in income levels and improvements in cost efficiency; BankIslami\u2019s underlying operating profit before provisioning for 1Q22 registered an increase by 95.8% i.e. increase from Rs. 684 Mn recorded during […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":{"0":"post-258312","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-business"},"yoast_head":"\n