Bank Islami Pakistan Limited (PSX: BIPL) reported a profit after tax of Rs6.0 billion for CY2025, marking a sharp 49% decline compared to Rs11.83 billion in 2024. The drop reflects lower net financing income and higher operating expenses during the year.
Earnings per share fell to Rs5.42 from Rs10.67, while the bank announced a total cash dividend of Rs2.75 per share for 2025, including the final payout of Rs1.25 per share.
The bank’s profit/return earned dropped 34% to Rs74.24 billion due to lower interest rates and compressed asset yields. Although funding costs also declined significantly, net profit/return still fell 23% to Rs35.68 billion.
Non-markup income showed strong growth, rising 107% to Rs9.51 billion, driven by higher fee income, dividend income, and a sharp increase in gains on securities. However, total income still declined 11% as financing income contraction outweighed these gains.
Operating expenses surged 42% to Rs31.46 billion amid expansion and inflationary pressures, pushing profit before tax down 45% to Rs13.97 billion. After taxation of Rs7.96 billion, profit settled at Rs6.0 billion.
Financial Highlights
| Description | 2025 | 2024 | Change |
|---|---|---|---|
| Profit / return earned | 74,235,332 | 112,800,697 | -34.19% |
| Profit / return expensed | 38,551,351 | 66,414,069 | -41.95% |
| Net profit / return | 35,683,981 | 46,386,628 | -23.07% |
| Total other income | 9,514,672 | 4,590,534 | +107.27% |
| Total income | 45,198,653 | 50,977,162 | -11.34% |
| Operating expenses | 31,457,381 | 22,159,072 | +41.96% |
| Profit before tax | 13,966,188 | 25,529,701 | -45.29% |
| Profit after tax | 6,004,675 | 11,833,541 | -49.26% |
| EPS (Rs) | 5.42 | 10.67 | -49.20% |
