BIPL reports profit decline amid soaring expenses

By MG News | Category Q32024 | October 24, 2024 at 04:36 PM GMT+05:00

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October 24, 2024 (MLN): BankIslami Pakistan Limited (PSX: BIPL) revealed its financial statement for the quarter ended September 30, 2024, as per which the bank posted a profit worth Rs3.14 billion [EPS: Rs2.83], depicting a fall of 6.29% compared to Rs3.35bn [EPS: Rs3.03] in the same quarter last year.

The income statement shows that the bank's net return income inched up to Rs11.79bn, compared to Rs11.69bn in Q3 CY23.

The bank's total other income was a key area of focus, rising 79.47% year-over-year to Rs928.17m.

This growth was primarily driven by increased foreign exchange income and the transition of income from Shariah-compliant forward and futures contracts into profit.

On the expense side, the bank’s total other expenses increased by 47.01% year-over-year, a rise that the increase in both incomes failed to cover, resulting in a decline in earnings.

Going forward, the bank incurred a provision expense of Rs7099.03m during the review period compared to Rs1.58bn in the corresponding period last year.

On the tax front, the bank paid Rs3.06bn, 6.95% lower than the tax paid in Q2CY23.

Consolidated Profit and loss account for the quarter ended September 30, 2024 ('000 Rupees)
	Sep-24	Sep-23	% Change
Profit/return earned	27,247,721	26,144,636	4.22%
Profit/return expensed	15,454,924	14,453,407	6.93%
Net Profit/return	11,792,797	11,691,229	0.87%
OTHER INCOME
Fee, commission and brokerage income	584,289	476,971	22.50%
Dividend income	1,560	16,975	-90.81%
Foreign exchange income	(165,702)	510,175	-132.48%
Loss/Income from shariah compliant forward and future works	432,617	(718,691)
Gain on sale of securities	18,876	86,261	-78.12%
Other income	56,526	145,474	-61.14%
Total other income	928,166	517,165	79.47%
Total income	12,720,963	12,208,394	4.20%
OTHER EXPENSES
Operating expenses	5,702,991	3,831,461	48.85%
Workers Welfare Fund	126,543	132,322	-4.37%
Other charges	1,429	2,590	-44.83%
Total other expenses	5,830,963	3,966,373	47.01%

Profit before provisions	6,890,000	8,242,021	-16.40%
Credit loss allowance and write offs - net	709,029	1,578,042	-55.07%
Share of profit / (loss) from associate - net of tax	19,645	(24,011)	-
Profit before taxation	6,200,616	6,639,968	-6.62%
Taxation	3,057,813	3,286,140	-6.95%
Profit after taxation	3,142,803	3,353,828	-6.29%
Basic and diluted earnings per share (Rupees)	2.83	3.03	-

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