In its financial results announcement for the year ending December 31, 2022, Bank Islami Pakistan Limited reported a tremendous increase in profit before tax of 142%, or Rs. 8.23 billion, as opposed to Rs. 3.39 billion the year prior. Despite a large increase in tax rates, profit after tax increased to Rs. 4.44 billion from Rs. 2.13 billion at the end of last year, or Rs. 108%.
For BankIslami, 2022 was a very successful year because it saw the company attain its highest-ever profitability and declare its first-ever 10% dividend to its stockholders. Deposits broke the 400 billion rupee milestone and ended the day at 415.91 billion rupees, representing a notable increase of 71.1 billion rupees and growth of 20.63%.Â
Despite the increase in policy rates, around 50% of the increase in deposits was contributed by current accounts. The bank also seized the opportunity of a rising policy rate scenario by offering attractive term deposit products, which enabled healthy growth of 27.5% (Rs. 29.72 billion) in term deposits.
The bank was able to achieve growth of 12.20% in its financing book (gross). The composition of consumer financing in the overall financing portfolio remained at 23.19 percent despite regulatory measures to curb the demand for auto financing.
As of December 31, 2022, the financing to deposit ratio (ADR/gross) had fallen to 52.98%. Due to the categorization of some corporate accounts, the bank’s infection ratio as of December 31, 2022 climbed to 9.02% from 8.7 percent as compared to last year.
