Bank Islami's bottom-line gains drop by quarter

MG News | October 24, 2018 at 01:09 PM GMT+05:00

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October 23, 2018 (MLN): October 24, 2018 (MLN): Bank Islami Pakistan (BIPL)’s consolidated profit for the nine month period ended September 30th, 2018 suffered a dip of 25.5% due to substantial losses worth 451.2 million in reversal of provision against diminution in the value of investments and placements, and 354 million in sale of securities.

Despite the loss in reversal of provisions, the Company’s net spread earnings augmented by 12.09%.

Though, the taxation for the company recorded a considerable decline of around 21.5%, it was not enough to pull up the profits of the company by significant margin.

As a result of this, Bank Islami’s earnings per share declined from Rs.0.20 per share to Rs.0.17 per share.

Profit and loss account for the Nine months ended September 30th 2018 ('000 Rupees)
	Sep-18	Sep-17	% Change
Profit/return earned	8,574,894	7,644,995	12.16%
Profit/return expensed	4,358,760	3,883,495	12.24%
Net spread earner	4,216,134	3,761,500	12.09%
(Reversal of provision)/provision against non-performing inslamic financing and related assets - net	11,307	(474,899)
(Reversale of provision)/provision against diminution in the value of investments and placements - net	(451,236)	105,343
Bad debts written off directly	-	-
Net spread after provision	4,656,063	4,131,056	12.71%
OTHER INCOME
Fee, commission and brokerage income	585,997	471,296	24.34%
Dividend income	18,580	1,045	1677.99%
Income from dealing in foreign currencies	135,808	62,251	118.16%
(Loss)/gain on sale of securities - net	(354,088)	63,583
Unrealized gain/(loss)on revaluation of investments classified as held for trading	2,538	(1,327)	-291.26%
Other income	67,698	43,653	55.08%
Total other income	456,533	640,501	-28.72%

OTHER EXPENSES
Administrative expenses	4,941,904	4,701,457	5.11%
Other provision/(reversals) - net	(22,038)	(131,652)
Other charges	28,748	21,623	32.95%
Total other expenses	4,948,614	4,591,428	7.78%

(Loss)/profit for the period from BIPL Securities Limited - net of tax	(51,867)	69,518
Share of results of associates before taxation	110,555	44,993	145.72%
Profit before taxation	222,670	294,640	-24.43%
Taxation	61,823	78,761	-21.51%
Profit after taxation	160,847	215,879	-25.49%
Basic and diluted earnings per share (Rupees)	0.17	0.20	-14.92%

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