Corporate Briefing Notes
BankIslami Pakistan Limited (BIPL) conducted its corporate briefing session today to discuss the financial results for CY22 and to highlight its future roadmap.
Key Highlights
● To recall, the bank reported earnings of PKR4.4bn (EPS: PKR4.04) in CY20 against PKR2.1bn (EPS: PKR1.77) in SPLY, witnessing an increase of 108% YoY.
● BIPL is currently operating a network of 380 branches in over 140 cities across Pakistan. About 18% of the branches are in rural areas.
● During CY22, total deposits of the bank grew by 21%YoY, whereas, Net financing improved by 11%YoY and Investments were up 44%YoY. As of Dec’22, CASA mix stood at 67%. While, current account ratio was recorded at 41% of total deposits as on Dec’22.
● The management informed that the bank will maintain ADR ratio in range of 55-60% in CY23.
● Despite prevailing macroeconomic uncertainties, BIPL successfully managed its Autos and Housing
portfolios during CY22.
● BIPL’s financing portfolio comprises of PKR153bn in Corporate Loans followed by Housing with
PKR27.5bn and Autos by PKR24bn, respectively.
● NPL ratio of the bank was clocked in at 9% as of Dec’22 compared to 10.6% in Dec’21. Whereas, coverage ratio including general provision of total portfolio is 96.1%, while Islamic portfolio is 95.0%.
● BIPL investments book accounts for 77.8% of Federal Govt. securities, 18% Pakistan Energy Sukuk, 3.3% Non-Government Debt Securities and 0.5% in shares. The entire investment book has a re-pricing tenure of ~6 months.
● Bank CAR was recorded at 17.92% during CY22.
● Regarding acquisition with JS group, the management did not disclose any further information as they are still waiting for clarity.
Future Outlook
● The Bank plans to open 60 new branches in CY23 and wants to grow overall deposit base to improve deposit per branch ratio. Moreover, the bank is also working on increasing the digital footprint through their revamped delivery channels.
Important Disclosures
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