BankIslami’s Cost Efficiency Soars, Profit Hits Rs. 8.47 Billion in Nine-Month Report

In 2023, BankIslami delivered outstanding financial performance, posting an after-tax profit of Rs. 8.47 billion for the nine-month period ending on September 30, marking a remarkable 197% increase compared to the previous year. This exceptional growth was supported by several key factors.

Firstly, the bank demonstrated remarkable cost efficiency, with the cost-to-income ratio dropping to 38.14% from 52.74% in the same period last year. Additionally, BankIslami strategically allocated its excess liquidity into secured investments, leading to a 53.6% growth in its investment portfolio, reaching Rs. 276.16 billion in September 2023.

Although the economic climate, high policy rates, and strict regulations on consumer financing posed challenges, the bank’s financing portfolio still managed a modest 1.2% growth. To safeguard against potential risks, the bank prudently established a strong provision buffer, ensuring a 102% coverage against delinquent loans by the end of the nine-month period.

The bank also saw an 11.1% increase in total deposits, maintaining a favorable CASA mix of 61%. This growth in profitability and improved credit risk profile resulted in an impressive Capital Adequacy Ratio (CAR) of 22.42%, significantly exceeding the regulatory threshold of 11.50%.

Overall, BankIslami’s 2023 performance demonstrated strong financial resilience, efficient management, and a strategic approach to navigating challenging economic conditions, ultimately delivering substantial benefits to its shareholders and maintaining its robust position in the market.

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