BIPL continues momentum of growth, net profits surge by 55.76% YoY

April 30, 2020 (MLN): BankIslami Pakistan Limited (BIPL) continued its momentum of growth in 2020 as its net profits during 1QCY20 has surged by 55.76% YoY to Rs 311.64 million against the profits of Rs 200 million in the similar quarter of last year.

The earning per share of the bank also rose from Rs 0.199 to Rs 0.286, depicting a growth of 433% YoY.

The quarterly report of the bank reveals that during the quarter, the bank’s Assets and Deposits rose by 32% and 31% as compared to its position in March 2019. Increase in Deposits mainly ensued on the back of aggressive deposit mobilization strategy adopted by the Bank, while Asset base of the BIPL thrived through effective channelizing of funds towards Islamic Financing and Shariah Compliant Treasury Placements.

There was an increase in NPFs in March 2020 as opposed to March 2019 due to which the infection ratio of the Bank inched up to 10.9% at the end of March 2020 as compared to 10.0% in March 2019. The Bank made accelerated provisioning during the quarter under review due to which the coverage ratio (including general provisions) of the Bank improved to 86.6% as of March 31, 2020, despite an increase in NPFs, the report stated.

The Net spread earned during the quarter improved by 47% as a result of an increase in a Balance Sheet size of the Bank and repricing impact of rise in benchmark rates during the latter half of 2019. However, it is pertinent to mention that, post 1st Quarter of 2020, the top line of the Bank is expected to witness compression on account of strategy adapted by the apex authority to gradually decline benchmark rates to enable the country to sustain prevailing economic challenges posed by COVID-19.

During the period, the bank also witnessed an increase in Bank’s other income by 113% owing to improved FX income, increase in fee, commission and brokerage income by 50% and booking of capital gains on sale of securities, all of which further helped in uplifting BIPL’s profitability.

Furthermore, despite witnessing a rise in operating expenses of the bank by 22.83%, the cost to income ratio reduced significantly from 67% in IQCY19 to 54% in 1QCY20.

Profit and loss account for the Quarter ended March 31st, 2020 ('000 Rupees)

 

Mar-20

Mar-19

% Change

Profit/return earned

 7,971,768

 4,637,336

71.90%

Profit/return expensed

 4,619,047

 2,357,081

95.96%

Net Profit/return

 3,352,721

 2,280,255

47.03%

OTHER INCOME

 

 

 

Fee, commission and brokerage income

 271,906

 181,048

50.18%

Dividend income

 2,350

 2,989

-21.38%

Foreign exchange income

 114,127

 25,948

339.83%

Income from shariah compliant forward and future contracts

 –  

 –  

 

Gain on sale of securities

 105,286

 (4,145)

 

Other income

 18,282

 34,089

-46.37%

Total other income

 511,951

 239,929

113.38%

Total income

 3,864,672

 2,520,184

53.35%

OTHER EXPENSES

 

 

 

Operating expenses

 2,088,584

 1,700,391

22.83%

Workers Welfare Fund

 12,213

 8,057

51.58%

Other charges

 137

 36,150

-99.62%

Total other expenses

 2,100,934

 1,744,598

20.43%

 

 

 

 

Profit before provisions

 1,763,738

 775,586

127.41%

Provision/ (reversal of provision) and write offs-net

 1,126,928

 441,312

155.36%

(Loss)/profit for the period from BIPL Securities Limited – net of tax

 –  

 (9,121)

-100.00%

Share of profit from associate before taxation

 (60,653)

 –  

 

Profit before taxation

 576,157

 325,153

77.20%

Taxation

 264,508

 125,070

111.49%

Profit after taxation

 311,649

 200,083

55.76%

Basic and diluted earnings per share (Rupees)

 0.2859

 0.1995

43.31%

 

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Posted on: 2020-04-30T14:51:00+05:00

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