Bank Islami showed strong financial performance with a 33.6% increase in pre-tax profit during the 90 months of the financial year 2024.

 

Online.  25th October 2024) Bank Islami has continued its growth journey by providing extraordinary profits to its shareholders with a 33.6% increase in pre-tax profit in the nine (09) month period ending on November 2024.  During this period, the pre-tax profit of the bank reached Rs.19.9 billion while the post-tax profit reached Rs.10.2 billion, thereby increasing by 20.5%.

 Despite the difficult market conditions, the bank remained committed to Islamic financial performance. A key feature of the nine-month period was the significant increase in Non-Fund Based Income (NFI), compared to the same period last year.  In comparison, there was an increase of about 1.3 billion rupees.  The ratio of NFI to gross income has also improved, rising to 9.4 per cent from 7.0 per cent last year, indicating the bank's strategic focus on diversifying income streams.

 In view of the ongoing uncertain economic situation in the country, Bank Islami has strategically expanded its investment portfolio while prudently improving its financing portfolio.  The investment portfolio reached Rs 346.7 billion while the overall financing portfolio decreased by 21.5% to Rs 199.5 billion.  As a result of this strategic adjustment, the infection rate increased from 9% at the end of 2023 to 12.7% in the current period.

 The bank's deposit portfolio increased by 19.5% over the period ending September 30, 2023 and 5.6% over the period ending December 31, 2023.  This growth was fueled by a 12.2% increase in term deposits since December, 2023 and the consolidation of the deposit book.  The CASA ratio also remained strong at 60 percent, reflecting the strategic focus on increasing consumer confidence, improved liquidity, trade finance and other business opportunities.

 With growing profitability and a strong credit risk profile, Bank Islami's Capital Adequacy Ratio (CAR) stood at 29.16 percent, much higher than the regulatory limit of 11.50 percent. Bank Islami expanded its deposit base, with over 500 branches.  Committed to further solidify its growth by leveraging its extensive network and enhancing customer experience through targeted technological advancements and broader digital impact.#

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