BankIslami 9M profit falls 39% to Rs3bn

October 23, 2026 (MLN): Consolidated profit after taxation of BankIslami Pakistan Limited (PSX: BIPL) fell 39.23% year-on-year to Rs3.08bn for the nine months ended September 30, 2026, compared with Rs5.07bn in the same period last year.

Basic and diluted earnings per share (EPS) declined 39.30% to Rs2.78 from Rs4.58 in the corresponding period last year.

The decline came from a swing in securities to a small loss from a gain of Rs3.36bn last year, along with a 15.81% rise in operating expenses. Higher net profit/return, stronger foreign exchange income and a larger reversal of credit loss allowance, along with a lower tax charge, only partly cushioned the impact.

Profit/return earned fell 6.17% to Rs52.63bn from Rs56.09bn, while profit/return expensed declined faster, by 15.11%, to Rs25.24bn from Rs29.74bn. Net profit/return rose 3.92% to Rs27.39bn from Rs26.35bn.

Foreign exchange income grew 62.82% to Rs1.71bn from Rs1.05bn, fee and commission income rose 6.15% to Rs2.72bn from Rs2.56bn, and dividend income increased 15.31% to Rs191.23m from Rs165.84m. Other income edged down 1.15% to Rs140.92m from Rs142.56m.

However, the bank booked a loss of Rs7.29m on securities (net), against a gain of Rs3.36bn last year, and the loss from Shariah-compliant alternative of forward foreign exchange contracts widened more than 2.5-fold to Rs138.47m from Rs54.67m.

As a result, total other income fell 36.11% to Rs4.62bn from Rs7.23bn, pulling total income down 4.70% to Rs32.01bn from Rs33.59bn.

Operating expenses increased 15.81% to Rs26.68bn from Rs23.04bn, while Workers’ Welfare Fund declined 40.89% to Rs131.10m from Rs221.80m and other charges fell 92.29% to Rs14.55m from Rs188.61m. Total other expenses grew 14.40% to Rs26.82bn from Rs23.45bn.

Profit before credit loss allowance fell 48.87% to Rs5.19bn from Rs10.14bn. A net reversal of provisions, credit loss allowance and write-offs of Rs1.26bn, up 72.96% from Rs727.46m, cushioned the decline, leaving profit before taxation down 40.71% at Rs6.44bn, compared with Rs10.87bn.

Taxation fell 42.01% to Rs3.36bn from Rs5.79bn, which left profit after taxation at Rs3.08bn.

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