Karachi: BankIslami, a prominent Islamic financial institution in Pakistan, has reported a profit before tax of PKR 13.9 billion for the fiscal year ending December 31, 2025. The bank declared a cash dividend of PKR 1.25 per share, culminating in a total annual payout of PKR 2.75 per share.
According to Bank Islami Pakistan Limited, the bank experienced a 107% increase in non-funded income, highlighting the diversification of its revenue streams. While the total income saw an 11% decline due to reduced policy rates and compressed spreads, the decrease was moderate compared to broader industry trends. BankIslami's deposit base grew by over PKR 100 billion, reaching PKR 660 billion, marking an 18% year-on-year increase. The rise was largely driven by a 35.2% growth in current accounts, which elevated the CASA ratio to a record 71%.
In 2025, BankIslami made strategic investments to bolster its long-term growth, including enhancing digital infrastructure, expanding its branch network, and acquiring a 32-storey tower in Karachi for its new headquarters. These initiatives resulted in a 42% increase in operating expenses. The bank maintained a Capital Adequacy Ratio of 16.6%, surpassing regulatory requirements, with an Asset-to-Deposit Ratio of 48.8%, reflecting disciplined balance sheet management.
Asset quality improved, with a 9.4% reduction in delinquent financing, lowering the infection ratio from 7.4% to 6.8%. The bank was recognized as Pakistan's Best Islamic Bank at the Euromoney Islamic Finance Awards, among other accolades. Rizwan Ata, President and CEO of BankIslami, emphasized the importance of diversification and expressed commitment to advancing Islamic banking in Pakistan. The bank operates over 560 branches nationwide, offering Shariah-compliant banking products and is expanding in areas such as Retail and Digital Banking, Cash Management, Investment Banking, Trade Finance, and Home Remittance.
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