Lower taxes pull up BIPL’s bottom-line

By MG News | August 25, 2021 at 09:16 PM GMT+05:00

0:00

August 25, 2021 (MLN): BankIslami Pakistan Limited (BIPL) has made profits of Rs1.02 billion for the half-year ended June 30, 2021, depicting an increase of around 8% YoY. However, its pre-tax profit inched lower by 0.6% as compared to the same period last year.

This has translated into earnings per share (EPS) of Rs0.92 for the period which is approx. 8% higher than the EPS recorded in the same period of last year.

According to the financial results issued to PSX, the bank witnessed a decline of 25% YoY in its net return during the period. The total other income also dropped by 7.5% on the back of lower foreign exchange income (down by 21%) coupled with an 88% decrease in capital gains.

On the other hand, the bank saw a reversal of provision worth Rs267mn against the provision of Rs1.54bn during 1HCY20.

The major highlight is a 10.4% YoY decrease in taxes which converted a decline in pre-tax profits into growth in the bottom-line during 1HCY21.

Consolidated Profit and Loss Account for the Half Year ended June 30, 2021 ('000 Rupees)
	Jun-21	Jun-20	% Change
Profit/return earned	10,948,721	14,756,112	-25.80%
Profit/return expensed	5,862,446	7,964,772	-26.40%
Net Profit/return	5,086,275	6,791,340	-25.11%
OTHER INCOME
Fee and commission income	611,204	440,033	38.90%
Dividend income	9,048	7,050	28.34%
Foreign exchange income	169,579	213,774	-20.67%
Gain on sale of securities	28,941	232,886	-87.57%
Other income	44,163	39,300	12.37%
Total other income	862,935	933,043	-7.51%
Total income	5,949,210	7,724,383	-22.98%
OTHER EXPENSES
Operating expenses	4,484,473	4,135,818	8.43%
Workers Welfare Fund	40,934	37,642	8.75%
Other charges	2,055	129,732	-98.42%
Total other expenses	4,527,462	4,303,192	5.21%

Profit before provisions	1,421,748	3,421,191	-58.44%
Provision/ (reversal of provision) and write offs-net	(267,278)	1,537,946	-
Share of profit/ (loss) from associate - net of tax	43,858	(140,575)	-
Profit before taxation from continuing operations	1,732,884	1,742,670	-0.56%
Taxation	717,731	800,856	-10.38%
Profit after taxation from continuing operations	1,015,153	941,814	7.79%
Basic and diluted earnings per share for profit from continuing operations attributable to the ordinary equity holders of the bank (Rupees)	0.9156	0.8495	7.78%

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