BankIslami Pakistan Limited posted a profit of Rs. 522 million for the quarter ended March 31, 2022, depicting a growth of 33.9 percent from a profit of Rs. 390 million posted during the same period last year.
With respect to its balance sheet, BankIslami 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.
Likewise, the Bank diverted its asset mix towards better yielding corporate and consumer segments which was 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 BankIslami’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.
