Home Business Bank Islami Reports 34% Growth During Q1 2022

Bank Islami Reports 34% Growth During Q1 2022

BankIslami Pakistan Limited recorded a tremendous profit of Rs. 522 million for the first quarter ended on March 31, 2022.

358
0

Bank Islami Pakistan Limited recorded a tremendous profit of Rs. 522 million for the first quarter ended on March 31, 2022.

The Q1 results depicted a growth of 33.9 percent from a profit of Rs. 390 million posted during the same period last year.

As per the company’s Q1 balance sheet, Bank Islami had a robust start to the year wherein it continued its strategy to improve its deposit mix and deployment of liquidity towards profitable Shariah-compliant avenues.

Consequently, Bank’s Current Account composition improved from 39.0 percent in Dec 2021 to 40.4 percent in March 2022.

Similarly, the Bank diverted its asset mix towards better yielding corporate and consumer segments which were in line with the increase in domestic demand.

As a result, the net Islamic Financing of the Bank grew by 8.2 percent, whereas a decline of 23.9 percent was witnessed in its treasury placements.

Owing to growth in credit book and persistent recovery efforts against delinquent exposures, the infection ratio reduced from 8.7 percent in Dec 2021 to 8.1 percent in March 2022 with an improved coverage ratio (including general provision) of 91.4 percent in March 2022 versus 89.6 percent in Dec 2021.

To improve the overall credit risk profile, the bank booked additional provisioning against its existing and potential delinquencies during the 1Q22. Despite recording additional provisioning,

Going forward, the bank will remain poised towards enhancing its Current Account Base; increasing its trade-based business turnover; and expanding its Corporate, SME, Auto, and Agri finance book backed by its dynamic risk management capabilities.

Moreover, to reinforce Bank Islami’s capital structure and fortify its asset base, the Bank has also planned further issue of an Additional Tier-1 Sukuk to the tune of Rs. 1 billion, subject to regulatory approvals.

For all the latest updates and news, visit CxO Global FORUM.

Previous articleSoorty Partners With ABHI to Facilitate Its Employees through Wage Digitization
Next articleEnablers Inks an MoU with Alibaba to Facilitate Its Expansion In Pakistan