Karachi: BankIslami Pakistan Limited reported a substantial increase in its financial performance for the first nine months of 2024, marking a 33.6% surge in profit before tax which totaled Rs. 19.9 billion. The bank also noted a significant 20.5% rise in post-tax profit, reaching Rs. 10.2 billion, despite prevailing market challenges.

According to Bank Islami Pakistan Limited, the period saw a notable rise in non-fund-based income (NFI), which increased by nearly Rs. 1.3 billion from the previous year, enhancing the NFI ratio to total income to 9.4% from 7%. This improvement highlights the bank’s strategic emphasis on diversifying its revenue streams.

In the face of economic uncertainties, BankIslami took measures to expand its investment portfolio to Rs. 346.7 billion while deliberately reducing its gross financing portfolio by 21.5% to Rs. 199.5 billion. This strategic shift resulted in an increased infection ratio, moving from 9% at the end of 2023 to 12.7% currently.

The bank’s deposit portfolio witnessed robust growth, expanding by 19.5% since September 2023 and 5.6% since December 2023, largely driven by a 12.2% increase in term deposits. The continued strong CASA ratio at 60% reflects heightened consumer confidence and BankIslami’s focus on broadening its trade finance and other business sectors.

BankIslami also reported a sturdy Capital Adequacy Ratio (CAR) of 29.16%, significantly above the regulatory requirement of 11.50%, indicating a strengthened credit risk profile and heightened profitability.

Looking forward, BankIslami plans to further enhance its growth trajectory by expanding its deposit base, leveraging its extensive network of over 500 branches, and improving customer experience through advanced technological initiatives and expanding its digital presence.