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Bank Islami Pakistan Limited has reported a sharp drop in its profits this year. The bank earned Rs5.07 billion after tax for the nine months ending September 30, 2025 — a 50% decline from Rs10.17 billion during the same period last year.
Earnings per share (EPS) also fell to Rs4.58, compared to Rs9.18 in 2024.
Total Income and Earnings Performance
The bank’s total income took a major hit as profit and return earnings dropped 35% year-on-year, falling to Rs56.09 billion from Rs86.44 billion last year.
The decline was largely due to lower yields during the period.
Expenses, however, decreased at a slower pace — 43% down to Rs29.8 billion from Rs52.5 billion — leaving the bank with a reduced net profit of Rs26.35 billion, compared to Rs33.9 billion in the previous year.
Fee, Dividend, and Foreign Exchange Income Trends
Despite the overall dip, the bank managed to improve some parts of its business.
- Fee and commission income jumped 53% to Rs2.56 billion.
- Dividend income more than doubled, reaching Rs165.8 million from Rs64.1 million last year.
- Foreign exchange income, however, slipped 15% to Rs1.05 billion.
- The bank also recorded a Rs54.7 million loss from its Shariah-compliant forward foreign exchange contracts, higher than the Rs13.3 million loss in 2024.
Investment Gains and Rising Costs
One bright spot came from investments in securities, where gains rose sharply — over seven times higher — to Rs3.36 billion from Rs395.8 million a year earlier.
Other income also improved slightly, increasing 5.6% to Rs142.6 million.
Even so, total income for the period fell 10%, dropping to Rs33.59 billion from Rs37.39 billion.
The biggest drag on profits came from rising costs:
- Operating expenses soared 44% to Rs23.04 billion from Rs15.97 billion.
- The workers’ welfare fund dropped 45% to Rs221.8 million,
- But other charges jumped from Rs1.8 million to Rs188.6 million.
As a result, total expenses rose 43% to Rs23.45 billion.
Profit Before and After Tax Performance
The bank also lost the Rs62.8 million profit share it had earned from associates last year.
- Profit before tax declined 45% to Rs10.87 billion, compared to Rs19.92 billion a year earlier.
- Tax payments also fell 40% to Rs5.79 billion.
After taxes, the bank was left with Rs5.07 billion in profit, cutting its net profit margin to 15.1%, down from 27.2% last year.
Overall, Bank Islami’s performance weakened due to smaller net profit returns and higher operating expenses, though these losses were partly offset by strong investment gains and better fee-based income.
Financial Summary for 9MFY25
| Category | 9MFY25 (Rs.000) | 9MFY24 (Rs.000) | Change (%) |
| Profit/Return Earned | 56,089,075 | 86,444,730 | -35.1% |
| Profit/Return Expensed | 29,736,286 | 52,542,898 | -43.4% |
| Net Profit/Return | 26,352,789 | 33,901,832 | -22.3% |
| Fee & Commission Income | 2,563,645 | 1,674,010 | +53.1% |
| Dividend Income | 165,842 | 64,096 | +158.7% |
| FX Income | 1,053,251 | 1,241,523 | -15.2% |
| Gain on Securities | 3,364,401 | 395,841 | +749.9% |
| Total Income | 33,587,714 | 37,399,004 | -10.2% |
| Operating Expenses | 23,036,668 | 15,968,190 | +44.3% |
| Profit Before Tax | 10,868,100 | 19,923,410 | -45.5% |
| Profit After Tax | 5,073,342 | 10,172,525 | -50.1% |
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