BankIslami posts nearly 19% decline in quarterly profit

April 22, 2025 (MLN): BankIslami Pakistan Limited (PSX: BIPL) has released its condensed interim consolidated financial results for the period ended March 31, 2025, reporting a profit after taxation of Rs2.61 billion, reflecting an 18.72% decline from Rs3.21bn recorded in the same period last year.

The bank’s earnings per share dropped to Rs2.3575 from Rs2.9004.

Total income rose by 6.34% to Rs12.38bn, compared to Rs11.64bn in March 2024.

This was despite a 33.90% decline in profit/return earned, which stood at Rs19.67bn, down from Rs29.75bn. Profit/return expensed also decreased significantly by 47.03% to Rs10.43bn.

Other income witnessed a sharp growth of 98.10%, reaching Rs3.15bn, mainly driven by a substantial increase in gain on securities, which surged by 874.65% to Rs2.11bn.

Fee and commission income grew by 16.89% to Rs735 million.

However, foreign exchange income dropped by 66.78% to Rs132.89m, and income from Shariah-compliant alternatives of forward FX contracts declined by 64.76%.

On the expenses side, operating expenses jumped by 44.29% to Rs7.05bn, contributing to a 45.16% increase in total other expenses which reached Rs7.28bn.

Despite a positive impact from a credit loss recovery of Rs390.5m, profit before taxation declined by 12.94% to Rs5.49bn, compared to Rs6.31bn in the same period last year.

The bank incurred taxation of Rs2.88bn, slightly lower than the Rs3.09bn paid in the previous year.

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