August 28, 2019 (MLN): The net earnings of BankIslami Pakistan Limited for the half year ended June 30, 2019, stood at Rs. 612 million (EPS: Rs. 0.6064), i.e. nearly 288% greater than the earnings recorded in the same period of last year.
The uplift in net income was primarily caused by Net Interest Income, which increased by 77% during the stated period, due to higher interest rates.
On the other hand, the total expenses of the bank grew by 13%, mainly due to a ridiculous increase in non-core expenses as well as workers’ welfare fund.
The bank also suffered a substantial blow from income tax expense, which displayed almost tenfold increase over the same period of last year.
Profit and loss account for the half year ended June 30, 2019 (Rupees'000) | |||
|---|---|---|---|
| June, 2019 | June, 2018 | % Change |
Profit / return earned | 9,853,085 | 5,636,494 | 74.81% |
Profit / return expensed | 4,991,039 | 2,894,289 | 72.44% |
Net Profit / return | 4,862,046 | 2,742,205 | 77.30% |
OTHER INCOME |
|
|
|
Fee and commission income | 328,790 | 369,247 | -10.96% |
Dividend income | 8,597 | 6,618 | 29.90% |
Foreign exchange income | 106,208 | 98,477 | 7.85% |
Gain / (loss) on securities | 17,581 | 43,832 | -59.89% |
Other income | 61,868 | 42,594 | 45.25% |
Total other income | 523,044 | 560,768 | -6.73% |
Total Income | 5,385,090 | 3,302,973 | 63.04% |
OTHER EXPENSES |
|
|
|
Operating expenses | 3,547,353 | 3,174,610 | 11.74% |
Workers Welfare Fund | 17,533 | 1,934 |
|
Other charges | 36,180 | 50 |
|
Total other expenses | 3,601,066 | 3,176,594 | 13.36% |
Profit before provisions | 1,784,024 | 126,379 |
|
Provisions and write offs – net | 876,033 | 27,654 |
|
Profit / (loss) for the period from BIPL Securities Limited – net of tax | 6,912 | -22,042 |
|
Share of profit from associate | 11,525 | 110,555 | -89.58% |
PROFIT BEFORE TAXATION | 926,428 | 187,238 | 394.79% |
Taxation | 313,898 | 29,290 | 971.69% |
PROFIT AFTER TAXATION | 612,530 | 157,948 | 287.80% |
Basic earnings per share | 0.6064 | 0.1617 | 275.02% |
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