BankIslami Pakistan Limited (BIPL) - March 2023

BankIslami Pakistan Limited (BIPL) – March 2023

Research Team

Table of Contents

Corporate Briefing Notes

BankIslami Pakistan Limited (BIPL) conducted its corporate briefing session today to discuss the financial results for CY22 and to highlight its future roadmap.

Key Highlights

● To recall, the bank reported earnings of PKR4.4bn (EPS: PKR4.04) in CY20 against PKR2.1bn (EPS: PKR1.77) in SPLY, witnessing an increase of 108% YoY.

● BIPL is currently operating a network of 380 branches in over 140 cities across Pakistan. About 18% of the branches are in rural areas.

● During CY22, total deposits of the bank grew by 21%YoY, whereas, Net financing improved by 11%YoY and Investments were up 44%YoY. As of Dec’22, CASA mix stood at 67%. While, current account ratio was recorded at 41% of total deposits as on Dec’22.

● The management informed that the bank will maintain ADR ratio in range of 55-60% in CY23.

● Despite prevailing macroeconomic uncertainties, BIPL successfully managed its Autos and Housing
portfolios during CY22.

● BIPL’s financing portfolio comprises of PKR153bn in Corporate Loans followed by Housing with
PKR27.5bn and Autos by PKR24bn, respectively.

● NPL ratio of the bank was clocked in at 9% as of Dec’22 compared to 10.6% in Dec’21. Whereas, coverage ratio including general provision of total portfolio is 96.1%, while Islamic portfolio is 95.0%.

● BIPL investments book accounts for 77.8% of Federal Govt. securities, 18% Pakistan Energy Sukuk, 3.3% Non-Government Debt Securities and 0.5% in shares. The entire investment book has a re-pricing tenure of ~6 months.

● Bank CAR was recorded at 17.92% during CY22.

● Regarding acquisition with JS group, the management did not disclose any further information as they are still waiting for clarity.

Future Outlook

● The Bank plans to open 60 new branches in CY23 and wants to grow overall deposit base to improve deposit per branch ratio. Moreover, the bank is also working on increasing the digital footprint through their revamped delivery channels.

Important Disclosures


This report has been prepared by Chase Securities Pakistan (Private) Limited and is provided for information purposes only. Under no circumstances, this is to be used or considered as an offer to sell or solicitation or any offer to buy. While reasonable care has been taken to ensure that the information contained in this report is not untrue or misleading at the time of its publication, Chase Securities makes no representation as to its accuracy or completeness and it should not be relied upon as such. From time to time, Chase Securities and/or any of its officers or directors may, as permitted by applicable laws, have a position, or otherwise be interested in any transaction, in any securities directly or indirectly subject of this report Chase Securities as a firm may have business relationships, including investment banking relationships with the companies referred to in this report This report is provided only for the information of professional advisers who are expected to make their own investment decisions without undue reliance on this report and Chase Securities accepts no responsibility whatsoever for any direct or indirect consequential loss arising from any use of this report or its contents At the same time, it should be noted that investments in capital markets are also subject to market risks This report may not be reproduced, distributed or published by any recipient for any purpose.

Analyst certification:

The research analyst for this report certifies that 1.all of the views expressed in this report accurately reflect her personal views about the subject and part of any of the research analyst’s compensation was, is, or will be directly or indirectly related to the specific recommendations or views expressed by the research analyst in this report.

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