KARACHI: BankIslami Pakistan Limited’s profit depicted a growth of 33.9 per cent to clock-in at Rs522 million for the quarter ended March 31, 2022, compared with a profit of Rs390 million during the same period last year.

BankIslami continued its strategy to improve its deposit mix and deployment of liquidity towards profitable Shariah compliant avenues.

Consequently, the bank’s Current Account composition improved to 40.4 per cent in March 2022 from 39.0 per cent in December 2021.

Likewise, the bank diverted its asset mix towards better yielding corporate and consumer segments which was in line with increase in domestic demand. As a result, the net Islamic financing of the bank grew 8.2 per cent, while a decline of 23.9 per cent was witnessed in its treasury placements.

The bank’s underlying operating profit before provisioning registered an increase of 95.8 per cent to Rs1.33 billion during the first quarter of 2021.

The bank recorded the profit of Rs684 million during the same period of last year.

The infection ratio reduced from 8.7 per cent in December 2021 to 8.1 per cent in March 2022, with an improved coverage ratio (including general provision) of 91.4 per cent in March 2022, compared with 89.6 per cent in December 2021.

To improve overall credit risk profile, the bank booked additional provisioning against its existing and potential delinquencies during the period under review.

To reinforce BankIslami’s capital structure and to fortify its asset base, the bank has also planned further issue of an Additional Tier-1 Sukuk to the tune of Rs1 billion, subject to regulatory approvals.

The Bank will remain poised towards enhancing its Current Account Base; increasing its trade based business turnover; and expanding its Corporate, Small and Medium Enterprises (SME), Auto and Agri finance book backed by its dynamic risk management capabilities.