KARACHI: The Board of Directors of BankIslami has approved the Bank’s Annual Audited Financial Statements, for the year ended December 31, 2018, in their meeting held in Karachi on February 28, 2019. BankIslami posted profit before tax (PBT) of Rs. 403 million for the year 2018, depicting a growth by 156% compared to PBT of last year, says a Press release.
During the year 2018, the Bank grew its deposits by 3.6% while its CASA (Current Accounts and Saving Accounts) grew by 4.8%, hence improving the mix of deposits. On financing side, Bank continued its growth momentum in consumer finance, being its flagship business line, which witnessed the growth of 21.6%.
With gradual influx of funds through deposits together with an increase in policy rates, the Bank registered improvement in its return on average earning assets during the year 2018, which ensued in an increase of 18.2% in its net spread earned. Along the same line, Bank’s non-funded income comprising of fee and commission income earned through trade business, alternative distribution channels, investment banking and general banking also grew by 30% during the year 2018 as the Bank operated with a strategy to enhance its fee based revenue streams.
The Bank’s operating expenses increased by 8.2% reflecting Bank’s spending on areas of growth and effect of inflation.
During the year 2018, BankIslami witnessed a transition in its leadership with appointment of Syed Amir Ali as the President and CEO who is a seasoned professional with over 20 years’ experience to his credit. With change at the helm of the Organization, the Bank underwent an internal reorganization to optimize its management structure and operational platform. This reorganization was carried out to (i) promote business transformation and innovation, (ii) enhance service and performance standards, (iii) strengthen Bank’s financial profile to counter potential economic shocks, and (iv) generate healthy returns for its stakeholders.
BankIslami has also received the accolade of ‘Most Innovative Banking Solution Provider – Bio metric’ at International Finance Banking Awards 2018, for its Bio-Banking service. This service has now been branded as ‘One Touch Banking’ and was formally launched in February 2019. This has enabled the Bank’s customers to carry out transactions by using their thumb impression.