Bank Islami's 9MFY25 profit declines 50%

MG News | October 24, 2025 at 11:09 AM GMT+05:00

0:00

October 24, 2025 (MLN): Bank Islami Pakistan Limited (PSX: BIPL) reported a profit after taxation of Rs5.07bn for the nine months ended September 30, 2025, down 50.1% from Rs10.17bn in the corresponding period last year.

Earnings per share declined to Rs4.58 compared to Rs9.18 in 9MFY24.

Profit/return earned decreased 35.1% YoYto Rs56.09bn from Rs86.44bn, a lower yields during the period. Profit/return expensed fell 43.4% to Rs29.8bn from Rs52.54bn.

Net profit/return contracted 22.3% to Rs26.35bn against Rs33.90bn in 9MFY24.

Fee and commission income increased 53.1% to Rs2.56bn, while dividend income surged 2.6 times to Rs165.8m from Rs64.1m last year.

Foreign exchange income declined 15.2% to Rs1.05bn from Rs1.24bn. The bank reported a loss from Shariah compliant alternative of forward foreign exchange contracts of Rs54.7m, compared to a loss of Rs13.3m in 9MFY24.

Gain on securities surged 7.5 times to Rs3.36bn from Rs395.8m.

Other income increased 5.6% to Rs142.6m.

Total income declined 10.2% to Rs33.59bn from Rs37.39bn in 9MFY24.

Operating expenses increased 44.3% to Rs23.04bn from Rs15.97bn last year.

Workers welfare fund declined 45.6% to Rs221.8m from Rs407.9m.

Total other expenses climbed 43.2% to Rs23.45bn from Rs16.38bn. Share of profit from associates stood at Rs62.8m in 9MFY24, which was absent in the current period.

Profit before credit loss allowance and write offs (net) stood at Rs10.14bn, down 51.9% from Rs21.08bn in 9MFY24. The bank reported extra ordinary/unusual items in both periods which were nil.

Profit before taxation declined 45.5% to Rs10.87bn from Rs19.92bn in 9MFY24.

Taxation declined 40.6% to Rs5.79bn from Rs9.75bn in the prior period.

The bank concluded 9MFY25 with a net profit of Rs5.07bn, delivering a net profit margin of 15.1% compared to 27.2% in 9MFY24.

The profit decline was driven by compressed net profit/return income and substantially higher operating expenses, partially offset by strong gains on securities and improved fee-based income.

STATEMENT OF PROFIT OR LOSS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2025 (Rs.000)
Description	9MFY25	9MFY24	change%
Profit / return earned	56,089,075	86,444,730	-35.1%
Profit / return expensed	29,736,286	52,542,898	-43.4%
Net profit / return	26,352,789	33,901,832	-22.3%
OTHER INCOME
Fee and commission income	2,563,645	1,674,010	53.1%
Dividend income	165,842	64,096	158.7%
Foreign exchange income / (loss)	1,053,251	1,241,523	-15.2%
(Loss) / Income from shariah compliant alternative of forward foreign exchange contracts	(54,672)	(13,266)	312.1%
Gain on securities - net	3,364,401	395,841	749.9%
Net gains on derecognition of financial assets measured at amortised cost	-	-
Other income	142,558	134,958	5.6%
Total Income	33,587,714	37,399,004	-10.2%
OTHER EXPENSES
Operating expenses	23,036,668	15,968,190	44.3%
Workers welfare fund	221,798	407,987	-45.6%
Other charges	188,611	1,843	10133.9%
Total other expenses	23,447,077	16,378,020	43.2%
Share of profit from associates	-	62,692
Profit before credit loss allowance and write offs - net	10,140,637	21,083,676	-51.9%
Credit loss allowance and write offs - net	(727,463)	1,160,266	-162.7%
Extra ordinary / unusual items	-	-
PROFIT BEFORE TAXATION	10,868,100	19,923,410	-45.5%
Taxation	5,794,758	9,750,885	-40.6%
PROFIT AFTER TAXATION	5,073,342	10,172,525	-50.1%
Earning per share	4.58	9.18	-50.1%

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