Bank Islami’s bottom-line gains drop by quarter

 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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Posted on: 2018-10-24T13:09:00+05:00

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