BIPL profit drops 49% to Rs6bn in CY25

February 18, 2026 (MLN): Bank Islami Pakistan Limited (PSX: BIPL) posted a profit after tax (PAT) of Rs6.00bn for the year ended December 31, 2025, marked a 49.26% year-on-year (YoY) decline compared to Rs11.83bn in CY24.

Earnings per share (EPS) fell to Rs5.42 from Rs10.67 last year, down 49.20% YoY.

The board declared a final cash dividend of Rs1.25 per share (12.5%), in addition to an interim dividend of Rs1.50 per share (15%) already paid, bringing the total payout for CY25 to Rs2.75 per share (27.5%).

Profit/return earned declined 34.19% YoY to Rs74.24bn from Rs112.80bn, showing the impact of lower interest rates and compressed asset yields during the year.

However, profit/return expensed fell at a steeper rate of 41.95% YoY to Rs38.55bn from Rs66.41bn, indicating significantly reduced funding costs across the bank's deposit base.

As a result, net profit/return (gross profit) contracted 23.07% YoY to Rs35.68bn compared to Rs46.39bn in CY24, showing the asymmetric repricing between earning assets and funding liabilities during the rate transition.

Total other income surged 107.27% YoY to Rs9.51bn from Rs4.59bn. Fee and commission income rose 48.19% to Rs3.43bn, while dividend income jumped 278.84% to Rs255m.

Foreign exchange income grew 5.76% to Rs1.37bn. The bank recorded a loss of Rs90m from shariah-compliant instruments versus a gain of Rs43m in the prior year.

Gain on securities net soared 495.19% to Rs4.17bn from Rs701m, while other income climbed 122.91% to Rs381m.

Despite the surge in other income, total income declined 11.34% YoY to Rs45.20bn from Rs50.98bn, as the contraction in net financing income outweighed gains in the non-markup segment.

On the cost side, total other expenses rose 40.28% YoY to Rs31.86bn from Rs22.71bn. Operating expenses increased 41.96% to Rs31.46bn amid ongoing business expansion and inflationary pressures.

Workers' Welfare Fund (WWF) declined 45.30% to Rs285m, while other charges surged 260.06% to Rs122m from Rs34m.

Profit before credit loss allowance and taxation contracted 52.82% YoY to Rs13.33bn from Rs28.26bn.

The bank recorded a net reversal of credit loss allowance of Rs632m in CY25, compared to a charge of Rs2.73bn in CY24, reflecting an improved asset quality environment and reduced provisioning requirements.

Consequently, profit before taxation fell 45.29% YoY to Rs13.97bn from Rs25.53bn.

Taxation declined 41.87% YoY to Rs7.96bn from Rs13.70bn, leading to the reported PAT of Rs6.00bn.

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