Karachi: BankIslami Pakistan Limited has announced a significant 66.2% increase in its profit before tax, reaching Rs. 13.8 billion for the first half of 2024, underscoring the institution’s robust performance and strategic financial management amid challenging market conditions.

According to Bank Islami Pakistan Limited, the bank’s post-tax profit also saw a substantial rise, amounting to Rs. 7.1 billion, marking a 32.1% growth compared to the previous period. This financial upturn is largely attributed to a notable increase in non-fund-based income (NFI), which grew by nearly a billion rupees year-over-year, enhancing the NFI ratio to total income from 8.9% to 10.5%.

Reflecting confidence in its financial health and commitment to shareholder value, the Board of Directors declared an interim dividend of Rs. 1.5 (15%) per share for the first half of 2024. In response to ongoing economic fluctuations, BankIslami has also strategically managed its portfolios; the bank’s investment portfolio expanded to Rs. 346.5 billion, whereas the gross financing portfolio was cautiously reduced by 12.8% to Rs. 221.5 billion, adjusting the infection ratio to 10.9% from 9% at the end of the previous year.

BankIslami’s deposit portfolio demonstrated remarkable growth, increasing by 18.95% since June 30, 2023, and by 5.39% since December 31, 2023. The growth in Current Accounts by 7% since the end of last year has bolstered the bank’s CA ratio to 37.88%. The continued strength of the CASA ratio, exceeding 60%, reflects increased consumer confidence and strategic emphasis on expanding trade finance and other business avenues.

With a solid Capital Adequacy Ratio (CAR) of 24.83%, well above the regulatory minimum of 11.50%, BankIslami is well-positioned for future growth. The bank plans to continue expanding its deposit base, leveraging its extensive branch network, and enhancing customer experience through targeted technological improvements and digital initiatives.