Bank Islami witnesses 296% increases in half yearly profits, in the wake of increased top-line earnings

Bank Islami Pakistan’s bottom-line profits for the half year ended June 30th 2018, skyrocketed by 296%, mainly due to admirable gains in top-line earnings.

The company conducted its Board of Directors meeting on August 29th, 2018, in order to review Bank Islami’s financial earnings for the above said period and provide a detailed comparison with the earnings made during the half year ended June 30th 2017.

Since the Bank received reversal of provision against diminution in the value of investments and placements – net this year, the net spread after provision increased by 25.8%.

However, due to a net loss of Rs.331.5 million, on sale of securities, the company’s total income suffered a dip of 56%.

Furthermore, Bank Islami’s total expenses increased by 6.6% as well.

Fortunately, since share of results of associates increased by 145% on year-on-year basis, profits before taxation shot up by 689%.

There were tax provisions during this period as compared to tax reversals during the same period last year. This led to a 296% rise in profits after taxation, as they increased from Rs.39.9 million to Rs.157.9 million.

Apart from this, Bank Islami’s Earnings per share increased from Rs.0.227 per share to Rs.0.3234 per share.

Profit and loss account for the half year ended June 30th 2018 ('000 Rupees)

 

Jun-18

Jun-17

% Change

Profit/return earned

                 5,636,494

                     5,050,432

11.60%

Profit/return expensed

                 2,894,289

                     2,578,927

12.23%

Net spread earner

                 2,742,205

                     2,471,505

10.95%

(Reversal of provision)/provision against non-performing Islamic financing and related assets – net

                       17,201

                         (89,376)

 

(Reversal of provision)/provision against diminution in the value of investments and placements – net

                   (373,970)

                           97,479

 

Bad debts written off directly

                                 –  

                                    –  

 

Net spread after provision

                 3,098,974

                     2,463,402

25.80%

OTHER INCOME

 

 

 

Fee, commission and brokerage income

                     368,534

                         321,438

14.65%

Dividend income

                          6,618

                                 389

1601.29%

Income from dealing in foreign currencies

                       98,478

                           30,855

219.16%

(Loss)/gain on sale of securities – net

                   (331,503)

                           46,532

 

Unrealized gain/(loss)on revaluation of investments classified as held for trading

                          2,218

                             1,054

110.44%

Other income

                       43,307

                           30,860

40.33%

Total other income

                     187,652

                         431,128

-56.47%

 

 

 

 

OTHER EXPENSES

 

 

 

Administrative expenses

                 3,174,610

                     3,099,531

2.42%

Other provision/(reversals) – net

                       11,307

                      (131,652)

 

Other charges

                          1,984

                           21,623

-90.82%

Total other expenses

                 3,187,901

                     2,989,502

6.64%

 

 

 

 

(Loss)/profit for the period from BIPL Securities Limited – net of tax

                     (22,042)

                           73,693

 

Share of results of associates before taxation

                     110,555

                           44,993

145.72%

Profit before taxation

                     187,238

                           23,714

689.57%

Taxation

                       29,290

                         (16,142)

 

Profit after taxation

                     157,948

                           39,856

296.30%

Basic and diluted earnings per share (Rupees)

                       0.3234

                           0.2270

42.47%

 

Posted on: 2018-08-30T10:34:00+05:00

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