BankIslami Pakistan Limited has announced its financial results for the year ended December 31, 2022. The Bank reported a remarkable growth of 142% in profit before tax, which amounted to Rs. 8.23 billion as compared to Rs. 3.39 billion in the previous year. Despite a significant increase in tax rates, profit after tax closed at Rs. 4.44 billion, representing a growth of 108% as compared to Rs. 2.13 billion in the previous year.
The year 2022 was a great success for BankIslami, where it achieved its highest ever profitability and announced its first-ever dividend of 10% to its shareholders. This was the result of the Bank’s all-round performance, with almost all of its segments contributing significantly. Deposits surpassed the Rs. 400 billion landmark and closed at Rs. 415.91 billion, showing a prominent rise of Rs. 71.1 billion and a growth of 20.63%.
Around 50% of the increase in deposits was contributed by Current Account, despite the increase in policy rates. This was the outcome of the Bank’s all-out efforts in introducing new and innovative products, expanding its sales team across the country, and pursuing aggressive marketing initiatives. The Bank also offered attractive term deposit products, which enabled healthy growth of 27.5% (Rs. 29.72 billion) in term deposits.
Despite the slowdown in economic activities at the country level, the Bank was able to achieve growth of 12.20% in its Financing book (gross). The composition of consumer financing in the overall financing portfolio remained at 23.19%, despite regulatory measures to curb the demand for auto financing. Financing to deposit ratio (ADR – gross) plunged to 52.98% as at December 31, 2022.
The Bank deployed its surplus liquidity mainly in GoP Ijarah Sukuks, which resulted in considerable growth of 43.98% in the investment portfolio and closed the investment book at Rs. 179.74 billion. With the rise in profitability and improved credit risk profile of the Bank, Capital Adequacy Ratio (CAR) improved to 17.92%, well above the regulatory threshold of 11.50%.
In order to continue this growth trajectory, the Bank will focus on increasing its branch network, improving the overall customer experience through leveraging technology, expanding its digital footprint, and developing low-cost deposit products. The Bank also remained committed to making constructive contributions to the economy and society. In this respect, it provided utmost support to flood victims in the country and set up a ‘Tent City’ for flood victims in collaboration with other entities. Besides this, the Bank also released emergency funds to different NGOs, distributed ration, medicines, tents, facilitated setting up medical camps and conducted other relief activities.
In the recent hard times, the Bank stood firmly with its employees to cope with the impact of daunting inflation in the country and provided monthly adhoc allowance for its lower and middle cadre employees. The Bank has declared its first-ever dividend to its shareholders of Re. 1 per share (10%) subject to approval of the shareholders in its upcoming Annual General Meeting.