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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