Karachi, April 27, 2024 – In an impressive financial surge, BankIslami Pakistan Limited announced a stellar 80 percent year-on-year growth in its profits for the first quarter of 2024.
The Sharia-compliant bank’s remarkable performance marks a significant milestone, showcasing robust growth and resilience in Pakistan’s banking sector.
According to the financial statement released to the Pakistan Stock Exchange (PSX) on Friday, the bank’s after-tax profit soared to Rs 3.22 billion for the quarter ending March 31, 2024, up from Rs 1.79 billion reported in the corresponding quarter last year. This substantial increase underscores the bank’s successful strategy and operational efficiency.
The earnings per share (EPS) also reflected substantial growth, reaching Rs 2.9 in the first quarter of 2024 compared to Rs 1.62 in the same period the previous year. This jump in EPS is indicative of the bank’s enhanced profitability and value generation for its shareholders.
The board of directors of BankIslami Pakistan, which met on Thursday, April 25, 2024, has approved these financial results. This approval comes as a testament to the bank’s strong financial health and its commitment to maintaining transparent and robust governance practices.
An analysis of the financial statement reveals that the bank’s net earnings escalated to Rs 10 billion in the reviewed quarter from Rs 6.91 billion in the first quarter of 2023. This notable increase is attributed to various income streams, including fees and commission, which surged by approximately 71 percent to Rs 628.81 million. Additionally, the bank significantly improved its foreign exchange income, which climbed to Rs 400 million from Rs 146.35 million in the previous year.
One of the most dramatic increases was observed in the gain on securities, which skyrocketed to Rs 216.25 million in the first quarter from a modest Rs 2.24 million in the same period last year. This gain is reflective of the bank’s savvy investment strategies and favorable market conditions.
The total income for the bank witnessed a substantial rise, reaching Rs 11.64 billion, compared to Rs 7.68 billion recorded in the first quarter of 2023. This growth in total income illustrates the bank’s successful diversification of revenue streams and enhancement of its core banking activities.
However, the bank also faced an increase in operating expenses, which grew to Rs 4.89 billion in the first quarter of 2024 from Rs 3.61 billion in the corresponding period last year. This increase reflects the bank’s expanded operations and investments in technology and infrastructure to better serve its customers.
Despite the rise in expenses, BankIslami Pakistan recorded a significant profit before taxation, which doubled to Rs 6.31 billion from Rs 3.16 billion in the previous year’s first quarter. This performance not only demonstrates the bank’s efficient cost management strategies but also its ability to capitalize on growth opportunities.
The remarkable growth in profit and comprehensive financial health depicted in BankIslami Pakistan’s first-quarter results for 2024 showcase the bank’s strategic vision and operational excellence. As the bank continues to innovate and adapt in a dynamic economic environment, its stakeholders can look forward to continued growth and profitability in the upcoming periods.
