BIPL's profit nearly triples to Rs8.46bn in 9MCY23, declares Rs1.75 DPS

October 24, 2023 (MLN): BankIslami Pakistan Limited (PSX: BIPL) has revealed its financial statement today for the 9MCY23, as per which the bank posted a profit worth Rs8.46 billion [EPS: Rs7.63], depicting a surge of 2.96x YoY, compared to Rs2.86bn [EPS: Rs2.58] in the same period last year (SPLY), bank’s filing on PSX showed today.

Along with the 9MCY23, the Board of Directors (BoD) of MEBL has recommended an interim cash dividend at Rs1.75/- per share i.e. 17.5%.

Going by the income statement, the bank witnessed an increase of 2.08x in its net interest income (NII) to stand at Rs28.34bn, compared to Rs13.64bn in SPLY. The surge in NII is due to a jump in interest-earning (Rs65.31bn), up by 2.07x YoY.

Conversely, the bank’s total other income decreased by 24.38% YoY to Rs2.15bn, owing to a significant decline in Foreign Exchange Income to clock in at Rs376.06m, depicting a fall of 69.39% YoY.

Moreover, BIPL’s other income also reduced to Rs252.86m in 9MCY23, against Rs473.85m recorded in 9MCY22.

Going forward, the bank incurred a provision reversal of Rs3.9bn during the review period compared to the reversal of Rs2.25bn in the corresponding period last year.

On the expense side, the bank’s total other expenses increased by 33.76% YoY to Rs11.63bn in 9MCY23 compared to Rs8.7bn in 9MCY22.

The increase was attributed to the jump of 32.05% YoY in the operating expenses from Rs8.58bn in 9MCY22 to Rs11.33bn in 9MCY23.

Similarly, MEBL’s expenses towards the Workers' welfare fund also went up by 2.69x YoY during the review period.

On the tax front, the bank paid Rs6.49bn, 2.41x higher than the amount paid in 9MCY22.

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