BankIslami Reports its Highest-Ever Profit During 2020 - Android

BankIslami has reported the highest-ever profitability during the financial year 2020. The bank reported a profit after tax of Rs.… Read More

The post BankIslami Reports its Highest-Ever Profit During 2020 appeared first on .

BankIslami has reported the highest-ever profitability during the financial year 2020.

The bank reported a profit after tax of Rs. 1.70 billion, up by 56 percent compared with the profitability of Rs. 1.09 billion during the financial year 2019.

Despite downward adjustment in the policy rate, net spreads of the Bank increased by 16 percent on account of 21 percent growth in earning assets and improvement in CASA deposit mix to 64 percent from 60 percent in December 2019.

Total deposits and current account deposits of the Bank rose by 23 percent and 33 percent, respectively, despite all challenges due to the spread of the COVID-19 pandemic.

To remain resilient against ensuing credit risk from the economic slowdown and to counter potential delinquencies, the Bank also booked additional provisioning on a prudent basis during the outgoing year.

During the year 2020, the Bank was also successful in completing the IPO of Pakistan’s First Shariah Compliant and Listed Additional Tier-1 Sukuk, carrying the brand of ‘Ehad Sukuk’.

ALSO READ

BankIslami Posts 81% Growth in Profit After Tax in 2020

The total size of the Ehad Sukuk is Rs. 2 billion. The issuance of this capital instrument has paved the way for BankIslami, to enhance its financing portfolio and deposit base.

The Government of Pakistan (GoP) took timely support measures, and the State Bank of Pakistan (SBP) effectively addressed the pressures emanating from the pandemic on various businesses and households.

Considering the gradual improvement in market appetite on the back of endeavors being made by the Government and SBP to enhance private sector financing, the Bank is working on efficiently increasing its exposure towards rated Corporate clients, Government-backed avenues, Auto Finance, Low-Cost Housing Schemes, Agri Finance, and FI placements.

Furthermore, the Bank will continue with its current strategy to capture low-cost CASA deposits, which will, in turn, provide stable returns during the prevailing low benchmark rate regime.

The post BankIslami Reports its Highest-Ever Profit During 2020 appeared first on .