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Bank Islami Pakistan Limited (PSX: BIPL) has reported a profit after tax of Rs5.07 billion for the nine months ended September 30, 2025, marking a sharp 50.1% decline from Rs10.17 billion recorded in the same period last year.
Earnings per share fell to Rs4.58 compared to Rs9.18 in 9MFY24. The drop in profitability primarily stemmed from reduced net profit/return income and higher operating costs during the review period.
According to the financial results, Bank Islami Pakistan saw profit/return earned fall 35.1% year-on-year to Rs56.09 billion from Rs86.44 billion due to lower yields. Profit/return expensed decreased 43.4% to Rs29.8 billion from Rs52.54 billion. Consequently, net profit/return shrank 22.3% to Rs26.35 billion against Rs33.90 billion in 9MFY24.
On the income side, fee and commission income rose 53.1% to Rs2.56 billion, while dividend income more than doubled to Rs165.8 million from Rs64.1 million last year. However, foreign exchange income slipped 15.2% to Rs1.05 billion, and the bank recorded a loss of Rs54.7 million from Shariah-compliant forward contracts compared to Rs13.3 million a year ago.
A bright spot was a significant surge in gain on securities, which increased 7.5 times to Rs3.36 billion from Rs395.8 million, while other income improved 5.6% to Rs142.6 million. Overall, total income dropped 10.2% to Rs33.59 billion from Rs37.39 billion in the same period last year.
Operating expenses jumped 44.3% to Rs23.04 billion from Rs15.97 billion, while workers welfare fund declined 45.6% to Rs221.8 million. Total other expenses climbed 43.2% to Rs23.45 billion from Rs16.38 billion.
Profit before credit loss allowance fell 51.9% to Rs10.14 billion from Rs21.08 billion. Profit before tax dropped 45.5% to Rs10.87 billion compared to Rs19.92 billion last year, while taxation decreased 40.6% to Rs5.79 billion.
Bank Islami Pakistan closed the nine-month period with a net profit margin of 15.1%, down from 27.2% a year earlier, mainly due to compressed net returns and rising costs, offset slightly by gains on securities and stronger fee-based income.
