BankIslami crossed a benchmark of Rs 1 billion pre-tax profit for the first time in its history, showing an outstanding performance so far in the calendar year 2016.
According to the financial results, BankIslami posted a pre-tax profit of Rs 1.006 billion by the end of three quarters of 2016. This figure is 633% percent higher as compared with similar period of previous year.
The growth in profits were seen as the bank has succeeded in streamlining its operations gradually after its merger with KASB Bank last year . The merger affected its its profitability and operations throughout the country last year.
According to the financial results, the bank recorded a profit of Rs 651.326 million in the three quarters of 2016 as against Rs 155.369 million reported in the corresponding period of 2015, showing growth of 320 percent.
The Bank recorded an increase of 6.87% from the same period last year, which increased to Rs 155 billion, showing continuous growth in customers base with increasing penetration of bank and its services in the local market.
The asset base has grown significantly and closed at Rs. 192.8 billion, denoting an increase of 6.78% from the same period last year. The bank’s deposit mix has also improved, which constituted 70.53% of the Current and Saving Accounts (‘CASA’), due to which the cost of fund has declined by 154bps.
The bank is aggressive in consumer financing specially automobile and house financing which helped improved its bottom line significantly.
This year, the bank made Rs 595 million through auto-finance and non-funded income as compared to Rs 135 million for the same period last year.
Key initiatives taken during the quarter include launch of mBankIslami (Bank’s mobile app), repackaged version of Auto Finance product, Diminishing Musharakah product for corporates & remittance agreement with Ria Financials Services, a globally renowned money transfer company.