BankIslami Pakistan Limited reported earnings per share of PKR 5.41 in CY25, down 49% from PKR 10.67 in CY24. This translates into profit after tax of PKR 6.0 Bn compared to PKR 11.8 Bn in SPLY. The bank declared a dividend of PKR 2.75 per share in CY25, in line with PKR 2.75 in CY24.
Total income in CY25 reached PKR 45.2 Bn against PKR 51.0 Bn in CY24, a decrease of 6%. This was primarily driven by a 107% increase in non-mark-up income from PKR 4.6 Bn in CY24 to PKR 9.5 Bn in CY25. The bank saw its total deposits rose from PKR 559 Bn at the end of CY24 to PKR 660 Bn at the end of CY25, an increase of 18%. Current accounts saw 35% growth during the year and now contribute 44% of the deposit base compared to 38% at the end of CY24.
Management expects CY25 deposit growth to continue. Investments stood at PKR 323 Bn at the end of CY25, down 6% from PKR 345 Bn at the end of CY24. The primary driver of this drop has been the reclassification of PKR 30 Bn of Pakistan Energy Sukuks. Management highlighted that out of its investments PKR 314 Bn is allocated to government sukuks with 95.5% in floaters and 4.5% in fixed rate instruments.
The bank’s cost to income ratio for CY25 stood at 69.6% compared to 43.5% in CY24. This was driven by branch network expansion, investment in marketing, tech and HR. Moving forward, the bank expects this to normalize near 50%. It was highlighted that larger players are able to achieve near 30% due to the scale of their operations. Capital Adequacy Ratio stood at 16.6% at end Dec-25, up from 24.1% at the end of CY24.
Moving forward, the management believes that the policy rate environment is uncertain moving forward and highly dependent on the global geo political environment which can potentially result in rate increases if the situation prolongs. The management plans to continue focus on branch networkexpansion and enhancement of low-cost deposits to drive
profitability.
Important Disclosures
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