JS Bank has enhanced its shareholding by 7.7 percent in BankIslami by acquiring 86.3 million ordinary shares from its sponsor Emirates NBD Bank PJSC.
“In accordance with the approval granted by State Bank of Pakistan, JS Bank Ltd. has acquired 86,316,964 ordinary shares (constituting 7.79 percent of the paid-up capital) of BankIslami Pakistan Ltd. from Emirates NBD Bank PJSC,” said a stock filing filed to the Pakistan Stock Exchange (PSX).
The bank has purchased 86.31 million shares from Emirates NBD Bank PJSC at Rs. 13.24 per share, making the aggregate sale consideration stand up to Rs. 1.14 billion. Accordingly, JS Bank’s shareholding has increased to 28.96 percent with the completion of the transaction.
BankIslami is already an associated company of JS Bank. Jahangir Siddiqui and Company Ltd, which is the parent entity of JS Bank already held a shareholding of 21.26 percent in BankIslami, which constitutes 235 million shares in the bank.
Emirates NBD Bank PJSC owned a shareholding of 13 percent, or 144 million shares, in BankIslami previously, according to the website. Other stakeholders include Ali Hussain and SAJ Capital Management Ltd. with 24.37 percent shareholding and Randeree Family with 14.25 percent stakes.
The bank has reported a profit of Rs. 2.85 billion for nine months of 2022, which is 53.7 percent higher than the profit after tax of the same period last year. The bank’s deposits grew to Rs. 388.1 billion, a 12.6 percent growth during the nine months of 2022 and a 25.5 percent growth since September 2021.
The enhanced shareholding of JS Bank in BankIslami will also reflect its future profitability.