KARACHI: BankIslami Pakistan Limited reported a pretax profit of Rs13.9 billion for the year ended December 31, 2025, as growth in fee-based income helped offset pressure from lower policy rates.
The bank declared a cash dividend of Rs1.25 per share, taking the total payout for the year to Rs2.75 per share.Non-funded income more than doubled from a year earlier, rising 107 per cent, reflecting higher fee and commission earnings. Total income fell 11 per cent amid declining interest rates and narrower spreads, though the bank said the contraction was less severe than broader industry trends.
Deposits rose 18 per cent year-on-year (YoY) to Rs660 billion, driven largely by a 35.2 per cent increase in current accounts. The growth pushed the bank’s current and savings account ratio to 71 per cent, its highest level on record.
Operating expenses increased 42% during the year, reflecting investments in digital infrastructure, branch expansion and the acquisition of a 32-storey tower in Karachi that will serve as its new headquarters.
The capital adequacy ratio stood at 16.6 per cent, above the regulatory minimum, while the asset-to-deposit ratio was 48.8 per cent.Asset quality improved, with non-performing financing declining 9.4 per cent to Rs21.9 billion. The infection ratio fell to 6.8 per cent from 7.4 per cent a year earlier.
During the year, the bank was named Pakistan’s Best Islamic Bank at the Euromoney Islamic Finance Awards.President and Chief Executive Officer Rizwan Ata said the lender had navigated industry headwinds through diversification and disciplined risk management, adding that it would continue to focus on strengthening its balance sheet and expanding Islamic banking services in 2026.
BankIslami operates more than 560 branches nationwide and offers a range of Shariah-compliant banking products across retail, digital banking, trade finance and investment banking.
