KARACHI: BankIslami Pakistan Limited has declared 34 per cent growth in profit after tax during quarter ended March 31, 2022.
Underpinned by growth in customer base, increase in income levels and improvements in cost efficiency; BankIslami’s underlying operating profit before provisioning for 1Q22 registered an increase by 95.8 per cent i.e. increase from Rs. 684 million recorded during 1Q21 to Rs 1,339 million during 1Q22.
With 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’s Current Account composition improved from 39.0 per cent in December 2021 to 40.4 per cent in March 2022.
Likewise, the Bank diverted its asset mix towards better yielding corporate and consumer segments which was in line with increase in domestic demand.
As a result, the net Islamic Financing of the Bank grew by 8.2 per cent, whereas a decline of 23.9 per cent was witnessed in its treasury placements.
Owing to growth in credit book and persistent recovery efforts against delinquent exposures, infection ratio reduced from 8.7 per cent in December 2021 to 8.1 per cent in March 2022 with an improved coverage ratio (including general provision) of 91.4 per cent in March 2022 versus 89.6 per cent in December 2021.
To 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 million for the quarter ended March 31, 2022, depicting a growth of 33.9 per cent from PAT of Rs. 390 million posted during same period last year.
Going 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’s 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.