February 28, 2020 (MLN): BankIslami Pakistan Limited has reported net profits of Rs. 1.12 billion (EPS: Rs. 1.08) for the year ended December 31, 2019, i.e. around 2.4x higher than the profits of last year.
This applause-worthy rise in profits can be attributed to a 78% increase in Net Interest Income, along with a 99% rise in Forex gains. The company also benefit from a thirteenfold rise in gain on sale of securities.
All of these positive changes led to the total income depicting a growth of 70%, while the total expenses only increased by 13.4%.
However, the company did suffer some of the brunt emanating from fall in profits from associate companies by 92%, and rise in income tax expense by 291%.
Besides the announcement of financial results, the Board of Directors in their meeting held on Thursday, also approved the sale of 8,000,000 shares of Banklslami Modaraba Investments Limited (“MO (representing 100% of the issued and paid-up ordinary share capital of BMIL) to BRR Investment (Private) Limited directly or through any of its affiliates (the “Proposed Transaction').
Profit and loss account for the year ended December 31, 2019 ('000 Rupees) | |||
|---|---|---|---|
Dec-19 | Dec-18 | % Change | |
Profit/return earned | 23,624,544 | 12,204,667 | 93.57% |
Profit/return expensed | 12,832,859 | 6,145,543 | 108.82% |
Net Profit/return | 10,791,685 | 6,059,124 | 78.11% |
OTHER INCOME | |||
Fee, commission and brokerage income | 617,932 | 842,235 | -26.63% |
Dividend income | 10,947 | 23,029 | -52.46% |
Foreign exchange income | 183,612 | 92,182 | 99.18% |
Income from shariah compliant forward and future contracts | 138,673 | ||
Gain on sale of securities | 660,253 | 46,818 | 1310.25% |
Other income | 159,178 | 82,246 | 93.54% |
Total other income | 1,631,922 | 1,225,183 | 33.20% |
Total income | 12,423,607 | 7,284,307 | 70.55% |
OTHER EXPENSES | |||
Operating expenses | 7,720,891 | 6,810,250 | 13.37% |
Workers Welfare Fund | 35,904 | 8,216 | 337.00% |
Other charges | 36,511 | 54,359 | -32.83% |
Total other expenses | 7,793,306 | 6,872,825 | 13.39% |
Profit before provisions | 4,630,301 | 411,482 | 1025.27% |
Provision/ (reversal of provision) and write offs-net | 2,773,316 | (3,165) | |
Extraordinary/ unusual items | – | – | |
(Loss)/profit for the period from BIPL Securities Limited – net of tax | (46,755) | ||
Share of profit from associate before taxation | 11,525 | 145,830 | -92.10% |
Profit before taxation | 1,868,510 | 513,722 | 263.72% |
Taxation | 744,000 | 190,084 | 291.41% |
Profit after taxation | 1,124,510 | 323,638 | 247.46% |
Basic and diluted earnings per share (Rupees) | 1.0800 | 0.3299 | 227.37% |
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