Home Economy Islamic banking industry assets increased by 2.8pc

Economy

Islamic banking industry assets increased by 2.8pc

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June 26, 2018

Islamic Banking Industry maintains outstanding growth

Assets of Islamic banking industry have increased by 2.8 percent during the quarter January to March, 2018 and were recorded at 2,334 billion rupees, compared to 2,272 billion rupees in the previous quarter.

According to data released by State Bank of Pakistan the financing recorded growth of 6.4 percent (77 billion rupees) during the period under review whereas market share of Islamic banking industry’s assets in overall banking industry’s assets increased by 1.1 percent during the period under review.

The share of net financing and investments in total assets (net) of Islamic banking industry stood at 54.9 percent and 22.7 percent, respectively by end March, 2018.

Posted on: 2018-06-26T22:42:00+05:00

Most Recent

EFUG’s net earnings swell by 78.5% YoY during 9MCY20

October 22, 2020 (MLN): EFU General Insurance Limited (EFUG) has posted its profit after tax of Rs 2.22 billion (EPS: Rs 8.16) for the nine months ended September 30, 2020, showing a robust growth of 78.5% YoY against the net profits of Rs 1.24 billion (EPS: Rs 4.56) of the corresponding period last year.

The financial results announced today were also accompanied by a third interim cash dividend for the nine months ended September 30, 2020, at Rs 1.5 per share i.e. 15% in addition to an aggregate amount of the first and second interim dividend already paid at Rs 3 per share i.e. 30%.

As per the financial statement issued by the company, the increase in profitability of the company was attributable to a twenty-three fold increase in net fair value gain on financial assets to Rs 3.31 billion along with a net realized fair value gain of Rs 3.41 billion in 9MCY20 against the losses of Rs 7.28 billion in 9MCY19

Moreover, the investment income of the insurance company went up by 11% YoY to Rs 9.50 billion.

The company reported a loss in underwriting income of Rs 13.11 billion mainly due to 5 times YoY increase in net change in insurance liabilities along with a 2.67% YoY increase in net insurance claims and acquisition expenses.

During the period, the rental income and other income jumped by 10% YoY to Rs 89 million. On the other hand, other income plunged by 21.4% YoY to stand at Rs 170 million.

Meanwhile, the tax expenses of the company went up by 12% YoY to Rs 1.22 billion.

Consolidated Profit and Loss Account for the Nine Months ended September 30, 2020 (Rupees in '000)
	Sep-20	Sep-19	% Change
Net insurance premium	27,535,205	27,012,023	1.94%
Net insurance claims	(15,658,108)	(14,445,858)	8.39%
Net commission and other acquisition costs	(4,941,168)	(5,618,428)	-12.05%
Insurance claims and acquisition expenses	(20,599,276)	(20,064,286)	2.67%
Management expenses	(3,446,669)	(3,519,371)	-2.07%
Net change in insurance liabilities (other than outstanding claims)	(16,602,496)	(2,861,894)	480.12%
Underwriting result	(13,113,236)	566,472	-
Investment income	9,504,234	8,545,413	11.22%
Net realized fair value gain/(losses) on financial assets	3,418,818	(7,286,219)	-
Net fair value gain / (loss) on financial assets at fair value through profit and loss	3,313,867	141,658	2239.34%
Rental income	89,715	81,779	9.70%
Other income	170,725	217,241	-21.41%
Other expenses	(87,428)	(77,043)	13.48%
	16,409,931	1,622,829	911.19%
Results of operating activities	3,296,695	2,189,301	50.58%
Profit from window takaful operations - Operator's Fund	154,076	153,750	0.21%
Profit before tax	3,450,771	2,343,051	47.28%
Income tax expense	(1,228,364)	(1,097,805)	11.89%
Profit after tax	2,222,407.00	1,245,246.00	78.47%
Profit attributable to:
Equity holders of the parent	1632916	911567	79.13%
Non-controlling interest	589491	333679	76.66%
	2222407	1245246	78.47%
Earnings (after tax) per share - Rupees	8.16	4.56	78.95%

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Askari Bank’s profits rise by 87% in 9MCY20 despite...

October 22, 2020 (MLN): Askari Bank Limited has earned profits of Rs. 8.2 billion (EPS: 6.5) for the nine months ended September 30, 2020, which is nearly 87% higher than the figures recorded in the same period of last year.

The growth in earnings was led by a 39% increase in net interest income, coupled with a 44% rise in the non-interest income. The latter mainly saw contribution from gains on securities, whilst other components reported meagre declines.

The Bank incurred operating expenses of Rs. 14.9 billion, i.e. 13% higher than the same period of last year. Other expenses such as Workers’ Welfare Fund and Non-core charges showed a decline of 51% and 57%, respectively.

However, there were some setbacks faced in the form of provisioning cost and income tax expense, which rose by 81% and 86% respectively.

Consolidated Financial Results for nine months ended September 30, 2020 (Rupees'000)
	Sep-20	Sep-19	% Change
Mark-up / return / interest earned	60,036,205	50,742,385	18%
Mark-up / return / interest expensed	(37,540,633)	(34,509,976)	9%
Net mark-up / interest income	22,495,572	16,232,409	39%
NON MARK-UP / INTEREST INCOME
Fee and commission income	2,602,860	2,645,654	-2%
Dividend income	202,950	206,815	-2%
Foreign exchange income	1,850,817	1,865,711	-1%
Income / (loss) from derivatives
Gain / (loss) on securities - net	2,388,880	98,709	2320%
Share of profit from associates			#DIV/0!
Other income	230,012	232,252	-1%
Total non-markup / interest income	7,275,519	5,049,141	44%
Total income	29,771,091	21,281,550	40%
NON MARK-UP / INTEREST EXPENSES
Operating expenses	(14,903,577)	(13,169,818)	13%
Workers welfare fund	(33,442)	(68,239)	-51%
Other charges	(42,904)	(99,766)	-57%
Total non-markup / interest expenses	(14,979,923)	(13,337,823)	12%
Profit before provisions	14,791,168	7,943,727	86%
Provisions and write offs - net	(1,320,797)	(731,119)	81%
Extraordinary / unusual items
PROFIT BEFORE TAXATION	13,470,371	7,212,608	87%
Taxation	(5,264,202)	(2,830,064)	86%
PROFIT AFTER TAXATION	8,206,169	4,382,544	87%
Earnings per share	6.5	3.48	87%

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Descon Oxychem records a profit of PKR 14 million...

October 22, 2020 (MLN): Descon Oxychem Limited has recorded profits of Rs. 14.06 million (EPS: 0.11) for the quarter ended September 30, 2020, i.e. nearly 79% lower than the earnings reported in the same period of last year.

The major reason for such a significant decline in profits was i) almost no change in revenue and ii) higher cost of goods sold. These two factors caused the gross profits to decline by 55%.

While there were some positive changes such as a 21% decline in administrative expenses, 36% decline in other expenses and 85% decline in finance costs, their impact on the profit before tax was disguised as it fell by nearly 68%.

The company paid an income tax expense of Rs. 7.6 million during the period, which is around 43% lower than the same period of last year.

Financial Results for the quarter ended September 30, 2020 (Rupees'000)
	Sep-20	Sep-19	% Change
Sales	620,514	628,817	-1.3%
Cost of goods sold	(556,414)	(484,481)	14.8%
Gross profit	64,100	144,336	-55.6%
Distribution costs	(13,644)	(13,804)	-1.2%
Administrative expenses	(20,857)	(26,387)	-21.0%
Other expenses	(4,683)	(7,296)	-35.8%
Other income	2,149	6,320	-66.0%
Finance cost	(5,315)	(35,462)	-85.0%
Profit before taxation	21,750	67,707	-67.9%
Taxation	(7,684)	(13,547)	-43.3%
Profit after taxation	14,066	54,160	-74.0%
Earnings per share	0.11	0.53	-79.2%

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National Foods’ net profits surge by 43% YoY during...

October 22, 2020 (MLN): National Foods Limited (NATF) has announced its financial results for the three months ended on September 30, 2020 wherein the bottom-line of the company grew by around 43% YoY, to Rs 594 million, translating into an EPS of Rs 3.54 when compared with the same period last year in which net profits were recorded at Rs 416 million (EPS: Rs 2.98).

During the 1QFY21, the top line witnessed a surge of 12% YoY to Rs 8.09 billion owing to the continuous growth of volumetric local sales, resulting in an 8.5% YoY increase in gross profits despite an increase in the cost of sales.

On the cost front, the positive highlight is the decrease in its major expense heads as distribution cost came down by nearly 8% YoY due to sales and marketing promotion while administrative cost and other expenses jumped by 27% and 5.46%, YoY, respectively.

As per the financial statement issued by the company, the other positive highlight includes an 18% decrease in financial charges on the back of a steep decline in interest rate.

Meanwhile, the company paid taxes worth Rs 189 million, ballooned by 25% YoY, restricting the growth in the company’s net profits.

Consolidated Financial Results for the first quarter ended September 2020 ('000 Rupees)
	Sep-20	Sep-19	% Change
Sales	8,090,465	7,234,824	11.83%
Cost of sales	(5,761,498)	(5,088,639)	13.22%
Gross profit	2,328,967	2,146,185	8.52%
Distribution cost	(1,120,634)	(1,214,459)	-7.73%
Administrative expenses	(340,374)	(267,768)	27.12%
Other expenses	(34,320)	(32,542)	5.46%
Other income	18,257	18,301	-0.24%
Operating profit	851,896	649,717	31.12%
Finance costs	(67,237)	(81,696)	-17.70%
Profit before taxation	784,659	568,021	38.14%
Taxation - net	(189,726)	(151,220)	25.46%
Profit after tax	594,933	416,801	42.74%
Basic and diluted earnings per share - Rupees	3.54	2.98	18.79%

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Islamic banking industry assets increased by 2.8pc

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