BankIslami reported a profit of Rs. 580 million in the first half of 2019, which is 8 times higher than the profit in the same period last year.
According to the financial report, the profit after tax of BankIslami increased to Rs. 580 million in the period of January to June 2019 (Half-year) as compared to Rs. 65 million reported in the same period last year.
The bank generated operating profit, before provisions, to the tune of Rs. 1.789 billion which is 13.7 times higher than numbers reported for the same period last year. The surge in operating profits was mainly attributable to the overall increase in net revenue of the bank by 63.6% as compared to HY2018.
The cost to income ratio has reduced to 66.8% during HY2019 as compared to 96.3% in HY2018.
BankIslami’s balance sheet demonstrated a robust growth on the strength of its extensive branch banking business and its recently rejuvenated sales structure, enabling the bank to increase its deposit base by 15.8% at the end of June 2019 vis-à-vis December 2018 and closed at Rs. 214 billion.
Moreover, on the back of effective measures taken by the bank on the recovery front, BankIslami’s overall infection ratio has declined from 11.9% as on December 31, 2018 to 9.9% as of June 30, 2019. Meanwhile, the coverage ratio (including general provisions) rose from 72.4% on December 31, 2018 to 89.4% at the end of June 2019.
In order to strengthen the capital base, BankIslami is in the process of issuing its listed Additional Tier-1 Capital (Sukuk) of Rs. 2 billion [including a greenshoe option of Rs. 500 million] during the year 2019. In addition to this, the bank has also decided, in principle, to increase its share capital during the current year by issuing right shares amounting to Rs. 1 billion.