October 24, 2025 (MLN): Bank Islami Pakistan Limited (PSX: BIPL) reported a profit after taxation of Rs5.07bn for the nine months ended September 30, 2025, down 50.1% from Rs10.17bn in the corresponding period last year.
Earnings per share declined to Rs4.58 compared to Rs9.18 in 9MFY24.
Profit/return earned decreased 35.1% YoYto Rs56.09bn from Rs86.44bn, a lower yields during the period. Profit/return expensed fell 43.4% to Rs29.8bn from Rs52.54bn.
Net profit/return contracted 22.3% to Rs26.35bn against Rs33.90bn in 9MFY24.
Fee and commission income increased 53.1% to Rs2.56bn, while dividend income surged 2.6 times to Rs165.8m from Rs64.1m last year.
Foreign exchange income declined 15.2% to Rs1.05bn from Rs1.24bn. The bank reported a loss from Shariah compliant alternative of forward foreign exchange contracts of Rs54.7m, compared to a loss of Rs13.3m in 9MFY24.
Gain on securities surged 7.5 times to Rs3.36bn from Rs395.8m.
Other income increased 5.6% to Rs142.6m.
Total income declined 10.2% to Rs33.59bn from Rs37.39bn in 9MFY24.
Operating expenses increased 44.3% to Rs23.04bn from Rs15.97bn last year.
Workers welfare fund declined 45.6% to Rs221.8m from Rs407.9m.
Total other expenses climbed 43.2% to Rs23.45bn from Rs16.38bn. Share of profit from associates stood at Rs62.8m in 9MFY24, which was absent in the current period.
Profit before credit loss allowance and write offs (net) stood at Rs10.14bn, down 51.9% from Rs21.08bn in 9MFY24. The bank reported extra ordinary/unusual items in both periods which were nil.
Profit before taxation declined 45.5% to Rs10.87bn from Rs19.92bn in 9MFY24.
Taxation declined 40.6% to Rs5.79bn from Rs9.75bn in the prior period.
The bank concluded 9MFY25 with a net profit of Rs5.07bn, delivering a net profit margin of 15.1% compared to 27.2% in 9MFY24.
The profit decline was driven by compressed net profit/return income and substantially higher operating expenses, partially offset by strong gains on securities and improved fee-based income.
|
STATEMENT OF PROFIT OR LOSS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2025 (Rs.000) |
|||
|
Description |
9MFY25 |
9MFY24 |
change% |
|
Profit / return earned |
56,089,075 |
86,444,730 |
-35.1% |
|
Profit / return expensed |
29,736,286 |
52,542,898 |
-43.4% |
|
Net profit / return |
26,352,789 |
33,901,832 |
-22.3% |
|
OTHER INCOME |
|||
|
Fee and commission income |
2,563,645 |
1,674,010 |
53.1% |
|
Dividend income |
165,842 |
64,096 |
158.7% |
|
Foreign exchange income / (loss) |
1,053,251 |
1,241,523 |
-15.2% |
|
(Loss) / Income from shariah compliant alternative of forward foreign exchange contracts |
(54,672) |
(13,266) |
312.1% |
|
Gain on securities - net |
3,364,401 |
395,841 |
749.9% |
|
Net gains on derecognition of financial assets measured at amortised cost |
- |
- |
|
|
Other income |
142,558 |
134,958 |
5.6% |
|
Total Income |
33,587,714 |
37,399,004 |
-10.2% |
|
OTHER EXPENSES |
|||
|
Operating expenses |
23,036,668 |
15,968,190 |
44.3% |
|
Workers welfare fund |
221,798 |
407,987 |
-45.6% |
|
Other charges |
188,611 |
1,843 |
10133.9% |
|
Total other expenses |
23,447,077 |
16,378,020 |
43.2% |
|
Share of profit from associates |
- |
62,692 |
|
|
Profit before credit loss allowance and write offs - net |
10,140,637 |
21,083,676 |
-51.9% |
|
Credit loss allowance and write offs - net |
(727,463) |
1,160,266 |
-162.7% |
|
Extra ordinary / unusual items |
- |
- |
|
|
PROFIT BEFORE TAXATION |
10,868,100 |
19,923,410 |
-45.5% |
|
Taxation |
5,794,758 |
9,750,885 |
-40.6% |
|
PROFIT AFTER TAXATION |
5,073,342 |
10,172,525 |
-50.1% |
|
Earning per share |
4.58 |
9.18 |
-50.1% |