LAHORE-BankIslami Pakistan Limited has announced its financial results for the year ended December 31, 2022 declaring a remarkable growth of 142% in profit before tax i.e. Rs. 8.23 billion as compared to Rs. 3.39 billion during last year. Profit after tax closed at Rs. 4.44 billion as compared to Rs. 2.13 billion closed during last year i.e. growth of Rs. 108% despite significant increase in tax rates. Year 2022 has been a great success for BankIslami, where it not only achieved highest ever profitability, but also announced its first ever dividend of 10% to its shareholders. Deposits surpassed Rs. 400 billion landmark and closed at Rs. 415.91 billion, depicting a prominent rise of Rs. 71.1 billion and growth of 20.63%.
Despite increase in policy rates, around 50% of the increase in deposits was contributed by current account. The bank also seized the opportunity of rising policy rate scenario by offering attractive term deposit products which enabled healthy growth of 27.5% (Rs. 29.72 billion) in term deposits. Bank was able to achieve growth of 12.20% in its financing book (gross). Composition of consumer financing in overall financing portfolio remained at 23.19% despite regulatory measures to curb the demand of auto financing. Financing to deposit ratio (ADR - gross) plunged to 52.98% as at December 31, 2022. Infection ratio of the bank as at December 31, 2022 increased to 9.02% from 8.7% as compared to last year due to classification of certain corporate accounts. In view of prevailing economic situation, the bank has recorded an additional general provision of Rs. 2.15 billion during the year, which improved the coverage ratio against delinquent accounts to 96.14% as compared to 89.57% at the end of last year. The bank deployed its surplus liquidity mainly in GoP Ijarah Sukuks, which resulted in considerable growth of 43.98% in investment portfolio and closed investment book at Rs. 179.74 billion. With rise in profitability and improved credit risk profile of the bank, Capital Adequacy Ratio (CAR) of the bank improved to 17.92%, well above the regulatory threshold of 11.50%, while it stood at 14.15% at the end of last year. The bank has declared its first ever dividend to its shareholders of Re. 1 per share (10%) subject to approval of the shareholders in its upcoming annual general meeting.
Tessori vows to continue consultations with stakeholders for economic stability