Securities loss, lower income and higher operating expenses weigh on BankIslami’s earnings in 1HCY26.
KARACHI: BankIslami Pakistan Limited reported a 54 percent decline in net profit during the first half of calendar year 2026, primarily due to a sharp reversal in securities-related income and higher operating expenses.
According to the consolidated profit and loss account submitted to the Pakistan Stock Exchange (PSX), the bank posted an after-tax profit of Rs2.03 billion for the half year ended June 30, 2026, compared with Rs4.41 billion in the corresponding period of 2025.
The decline pushed earnings per share (EPS) down to Rs1.83, from Rs3.98 a year earlier.
The bank’s board of directors, at its meeting held on August 19, 2026, approved an interim cash dividend of Rs1.50 per share for the half year ended June 30, 2026.
Securities loss weighs on BankIslami profit
The deterioration in securities-related income was a major factor behind the decline in BankIslami’s profitability.
The bank recorded a loss of Rs140 million from securities during the first half of 2026, compared with a gain of Rs2.39 billion in the same period last year.
The year-on-year reversal of around Rs2.53 billion significantly affected the bank’s overall earnings and contributed to the sharp decline in net profit.
BankIslami’s income declines
BankIslami’s net earnings stood at Rs17.68 billion during 1HCY26, compared with Rs18.52 billion in the corresponding period of 2025.
Fee and commission income also edged down to Rs1.70 billion, from Rs1.78 billion a year earlier.
Total income declined to Rs20.54 billion during the period under review, compared with Rs23.42 billion in the first half of 2025.
At the same time, operating expenses increased considerably to Rs17.14 billion, compared with Rs15 billion a year earlier.
The bank paid Rs2.30 billion in income tax during the first half of 2026, compared with Rs4.55 billion in the corresponding period of 2025.
Quarterly profit falls 37%
BankIslami also reported weaker quarterly earnings.
Profit after tax for the quarter ended June 30, 2026, fell 37 percent to Rs1.13 billion, compared with Rs1.80 billion in the same quarter of 2025.
The latest financial results indicate that weaker securities performance, lower total income and higher operating expenses placed considerable pressure on BankIslami’s profitability during the first half of 2026.