KARACHI: BankIslami Pakistan Ltd on Thursday reported a 197 percent jump in profit after tax for the first nine months of 2023, boosted by higher investment income and lower operating costs.
The bank said it earned Rs8.47 billion in the period ended September 30, compared with Rs2.85 billion a year earlier. It also announced an interim cash dividend of 17.5 percent, or Rs1.75 per share, for its shareholders.
BankIslami's long-term entity rating was upgraded by the Pakistan Credit Rating Agency (PACRA) to 'AA-' from 'A+', reflecting its improved financial performance, asset quality and capital adequacy.
The bank's net assets grew by 23.6 percent to Rs569.9 billion, driven by a 53.6 percent increase in its investment portfolio, which reached Rs276.16 billion. The bank said it strategically allocated its excess liquidity into secured investments amid challenging market conditions.
The bank's financing portfolio rose by 1.2 percent to Rs175.9 billion, as the bank faced stiff competition, high policy rates and regulatory restrictions on consumer financing. The bank said it prudently increased its provision coverage to 102 percent of its non-performing loans, enhancing its risk management.
The bank's total deposits rose by 11.1 percent to Rs465.4 billion, with a favorable current and savings account (CASA) ratio of 61 percent. The bank's cost-to-income ratio improved to 38.14 percent from 52.74 percent a year ago, reflecting its operational efficiency.
The bank's capital adequacy ratio (CAR) stood at 22.42 perceny, well above the minimum requirement of 11.5 percent, indicating its strong capital base and solvency. BankIslami said it plans to further expand its deposit base, branch network and digital presence, as well as enhance its customer experience through technological innovations.
Bank Alfalah posts 93.4pc profit growth in Q3
Bank Alfalah Limited on Thursday reported a 93.4 percent increase in its profit after tax for the third quarter of 2023, driven by higher net interest income and fee income.
The bank said its profit after tax rose to Rs27.252 billion in the July-September period, from Rs14.087 billion a year earlier. Earnings per share (EPS) stood at Rs17.28, compared with Rs7.93 in the same quarter last year.
The bank's net interest income, the difference between interest earned and interest paid, grew by 36.8 percent year-on-year to Rs41.751 billion, while its non-interest income, which includes fee income, commission income and foreign exchange income, increased by 25.9 percent to Rs13.142 billion. The bank's deposit base expanded by 31.5 percent year-on-year to Rs1.821 trillion as of September 30, 2023, with a current account ratio of 41.0 percent and a current and savings account (CASA) ratio of 70.6 percent.
The bank's advances stood at Rs708.228 billion as of September 30, 2023, reflecting a cautious lending strategy amid challenging market conditions. The bank maintained a high provision coverage ratio of 112.5 percent, including general provision, against non-performing loans.
The bank's capital adequacy ratio (CAR) was 15.50 percent as of September 30, 2023, well above the regulatory requirement of 11.50 percent. The bank said it was focused on growing its market share, extending its footprint and delivering unparalleled services to its customers while expanding its reach to a broader audience.
Mari Petroleum Q1 profit jumps 51pc
Mari Petroleum Company Limited, Pakistan's second-largest oil and gas exploration and production company, reported a 51 percent increase in its net profit for the first quarter of fiscal year 2024, driven by higher gas sales and currency devaluation.
The company posted a net profit of Rs19.1 billion, or Rs143.5 per share, for the quarter ended Sept. 30, compared with Rs12.7 billion, or Rs95.3 per share, in the same period last year. Revenue rose 51 percent year-on-year and 3 percent quarter-on-quarter to Rs38.9 billion, as the company achieved its highest-ever quarterly hydrocarbon sales of 10 million barrels of oil equivalent (MMBOE), up 12 percent from a year ago.
The increase in sales volume was mainly due to higher gas offtake from the Mari field, the company's flagship asset, which accounts for about 90 percent of its total production.
The company also benefited from the depreciation of the rupee, as most of its sales contracts are dollar-denominated. Exploration expenses increased by 30 percent year-on-year to Rs1.2 billion, as the company pursued an aggressive exploration strategy to enhance its reserves base.
However, exploration expenses declined by 72 percent quarter-on-quarter, as the company did not incur any impairment losses on its exploration assets in the first quarter, unlike the previous quarter. Finance income rose by 144 percent year-on-year and 12 percent quarter-on-quarter to Rs4.6 billion, possibly due to higher income from financial assets. The effective tax rate for the quarter was 41 percent compared with 34 percent in the same period last year.
Along with the results, the company announced that it had signed a memorandum of understanding (MOU) with Barrick Gold Corporation (ABX TO), one of the world's largest gold mining companies, for strategic collaboration on mining projects in Pakistan. The company said it had secured a license for mineral exploration in the Chagai district of Balochistan province.
SCB profit surges 121pc in first nine months
Standard Chartered Bank Pakistan reported a record profit after tax of Rs31.4 billion for the first nine months of 2023, up 121 percent from a year earlier, driven by strong income growth and lower impairments.
The bank, a unit of London-based Standard Chartered Plc, said its revenue increased 70 percent to RS76.9 billion. The bank's net interest income jumped 131 percent year on year, helped by proactive balance sheet management, pricing discipline and higher interest rates, it said in a statement.
Operating expenses rose 27 percent, in line with inflation, while impairments fell to Rs615 million from Rs1.9 billion a year earlier, reflecting a prudent risk approach and recoveries of bad debts. The bank's total deposits stood at Rs725 billion at the end of September, up 17 percent from the start of the year, with current accounts growing 21 percent. Net advances grew 9 percent to Rs217 billion.
The bank said it had a strong return on equity of 46.3 percent and a capital adequacy ratio of 20.4 percent. The board of directors declared an interim cash dividend of Rs2.50 per share, or 25 percent, for the nine-month period, in addition to a 40 percent interim cash dividend announced for the first half of the year.
"I am pleased to share our third quarter results reflecting our resilience, strong foundations, continued transformation and enhanced headway towards achieving our strategic priorities," Rehan Shaikh, chief executive officer of Standard Chartered Pakistan, said. "The external environment remains challenging; however, we remain fully committed to delivering a sustainable growth for our shareholders, bringing the best-in-class services and solutions for our clients and playing our part in the growth story of Pakistan."
