KARACHI, Oct 24 (Focus Pakistan) - BankIslami profit fell 39% to Rs3.08 billion in the first nine months of 2026, as securities gains that boosted last year's earnings turned negative and rising administrative expenses outpaced growth in the Islamic lender's core income.
The Shariah-compliant bank, which trades as BIPL on the Pakistan Stock Exchange, earned Rs3.08 billion after tax from January through September. Per-share profit came to Rs2.78, against Rs4.58 a year ago.
BankIslami Profit Under Pressure
Over the same nine months of 2025, sales of securities brought in about Rs3.36 billion. This year BankIslami lost a little money on that line.
Net profit and return income, the Islamic banking equivalent of net interest income, rose 3.92%. Administrative costs went up 15.81% in the same stretch, roughly four times the pace.
Also Read: Meezan Bank Deposits Surge Rs632bn as Lending Shrinks, Profit Jumps 22%
A bank books such a gain when it sells sukuk or other bonds for more than it paid. Falling rates make that easier, since bond prices move opposite to rates.busi
BankIslami Earnings Slide
BankIslami’s earnings have weakened through the year. In the January-March quarter alone, after-tax profit fell 65% to Rs903.88 million, TechJuice reported. Securities gains shrank 97% and operating costs grew 20%.
By the end of June, six-month pre-tax profit stood at Rs4.31 billion, down from Rs8.95 billion, the bank said. The decline also extends a longer slide. Pre-tax profit nearly halved in 2025 to Rs13.9 billion, from a record Rs25.5 billion in 2024, the bank’s annual figures show. The squeeze on earnings contrasts with steady growth in the balance sheet.
BankIslami said in August its deposits crossed Rs700 billion for the first time at the end of June, up 11.1% from a year earlier. Deposits stood at Rs660 billion at end-2025.
Its current and savings account (CASA) ratio rose above 77%, from 71% in December, a level the bank called a record at the time. Gross financing reached Rs338.6 billion.
Current and savings accounts generally cost banks less than fixed-term deposits, which lowers funding costs.
The bank’s results come as Islamic banking gains ground in Pakistan. Islamic banking institutions grew 13% in the first half of 2026, compared with 11.5% a year earlier, the State Bank of Pakistan said in its mid-year review of the banking sector.
JS Bank acquired control of BankIslami in 2023. The lender operates more than 550 branches in over 210 cities. BankIslami said at the time that growth in fee income helped offset pressure from lower policy rates in 2025.
The bank released its full-year results on Feb 19 this year and on Feb 28 in 2025.
