BANKISLAMI POSTS 92PC RISE IN PROFIT AFTER TAX IN MARCH-2020.

Byline: S.KAMAL HAYDER KAZMI

A cross the globe, COVID-19 pandemic has created disruption and uncertainty for the common man and business community. BankIslami Pakistan Limited being a responsible institution in the banking sector, to inhibit the impact of this pandemic situation, took a number of precautionary initiatives based on World Health Organization (WHO) health principles to ensure safe work environment for employees as well as customers.

Furthermore, BankIslami, in light of relief packages proclaimed through State Bank of Pakistan (SBP), is closely working with its financing clients, who have been affected by COVID-19, through advising them on restructuring. Keeping in view the ensuing economic problems because of this pandemic, BankIslami on conservative basis has registered additional provisioning to the tune of Rs. 700 million during the quarter ended March 31, 2020 against potential losses in asset portfolio. The experts further recorded in the financial report that despite the pandemic outbreak, the bank was able to post a profit after tax of Rs. 368 million for the quarter ended March 31, 2020 which is 92 percent higher than profit after tax of Rs. 192 million generated during the corresponding period last year.

No doubt, BankIslami envisioned to focus mainly on Wealth Management as the core area of business in addition to Shariahcompliant retail banking products, proprietary and third party products, and Integrated financial planning services. Moreover, In the financial results of BankIslami Pakistan Limited for quarter ended March 31, 2020, experts recorded that BankIslami continued its momentum of growth in 2020 whereby its Assets and Deposits grew by 32 percent and 31 percent as against to its position in March 2019.

Rise in Deposits chiefly ensued on the back of aggressive deposit mobilization strategy adapted through the bank, while asset base of the bank thrived by effectual channelizing of funds towards Islamic Financing and Shariah Compliant Treasury Placements. There was a rise in NPFs in March 2020 as opposed to March 2019 because of which the infection ratio of the Bank inched up to 10.9 percent at the end of March 2020 as against to 10.0 percent in March 2019.

Statistics of the report also revealed that BankIslami made accelerated provisioning during the quarter under review because of which the coverage ratio of the bank enhanced to 86.6 percent as of March 31, 2020 despite rise in NPFs. Net spread earned during...

To continue reading

Request your trial

VLEX uses login cookies to provide you with a better browsing experience. If you click on 'Accept' or continue browsing this site we consider that you accept our cookie policy. ACCEPT