KARACHI: The Pakistan Credit Rating Agency Limited has reaffirmed the ratings of BankIslami Pakistan Limited, following a period marked by strategic ownership changes and operational growth. As the first Islamic commercial bank in Pakistan to receive an Islamic banking license, BankIslami has seen a notable transformation after JS Bank Limited increased its stake to 75.12%, securing its position as the majority shareholder and integrating BankIslami into the JS Group.

This transition has facilitated enhanced operational performance and financial stability for the bank. Leveraging the strategic support of the JS Group, BankIslami has expanded its product portfolio, improved operational efficiency, and extended its market reach. The bank's recent technological advancement includes the launch of a digital mobile app, 'AIK', which aligns with the JS Group's app 'Zindigi', aiming to improve customer service and drive sustainable growth.

In the fiscal year 2024, BankIslami expanded its branch network from 440 to 540 branches, primarily in Punjab, to capitalize on high-potential markets. The bank's deposit base grew by 7%, reaching PKR 559 billion, while net advances increased by 28% to PKR 296 billion. The bank's investment portfolio also expanded to PKR 345 billion, primarily due to increased exposure to government Ijara Sukuk.

Despite a significant increase in operating expenses due to branch expansion, BankIslami's profit after taxation remained stable at PKR 11.8 billion, supported by an improved net interest margin. The bank's equity base and risk absorption capacity improved, with the Capital Adequacy Ratio rising to 24.1%.

BankIslami's strategic focus remains on deposit and trade business growth, enhanced risk management, and strengthening its digital presence. The reaffirmed ratings reflect the bank's robust market position and improved risk management, underscoring the value of its transformed ownership structure. Further improvements in asset quality are deemed crucial for continued success.