BankIslami reported a profit of Rs. 580 million in the first half of 2019, which is 8 times greater than the profit in the same period last year.
According to the financial report, BankIslami’s after-tax profit increased to Rs. 580 million in the period from January to June 2019 (half a year) compared to Rs. 65 million reported in the same period last year.
The bank generated operating profits, before provisions, for the sum of Rs. 1,789 billion, which is 13.7 times greater than the numbers reported for the same period last year. The increase in operating profits was mainly due to the general increase in the bank’s net income by 63.6% compared to HY2018.
The cost / revenue ratio has been reduced to 66.8% during HY2019 compared to 96.3% in HY2018.
BankIslami’s balance sheet showed strong growth thanks to the strength of its extensive bank branch business and its recently rejuvenated sales structure, which allowed the bank to increase its deposit base by 15.8% at the end of June 2019 with compared to December 2018 and closed at Rs. 214 billion.
In addition, as a result of the effective measures taken by the bank in front of the recovery, the BankIslami general infection rate has decreased from 11.9% as of December 31, 2018 to 9.9% as of June 30, 2019. Meanwhile, The coverage ratio (including general provisions) increased from 72.4% at December 31, 2018 to 89.4% at the end of June 2019.
In order to strengthen the capital base, BankIslami is in the process of issuing its additional Tier 1 (Sukuk) capital of Rs. 2 billion [including a green shoe option of Rs. 500 million] during the year 2019. In addition to this, the bank also decided, in principle, to increase its share capital during the current year by issuing correct shares worth Rs. 1 billion