BankIslami Pakistan Limited (‘the Bank’ or ‘BankIslami’) announced its financial results for the quarter ended March 31, 2023 registering a notable increase of 262% in profit before tax i.e. Rs. 3.16 billion as compared to Rs. 0.87 billion for corresponding period of last year. Profit after tax closed at Rs. 1.79 billion as compared to Rs. 0.52 billion during same period last year i.e. growth of 244%. From beginning of the year 2023, BankIslami focused on deployment of its surplus liquidity in profitable Shariah compliant avenues due to which its financing book increased by 19.6% in first three months of 2023, improving the Advance to Deposit ratio (gross) from 53% in Dec 2022 to 63% at the end of Mar 2023. Likewise, investment portfolio also grew by 11.9% during first quarter of 2023. Owing to growth in credit book and persistent recovery efforts against delinquent exposures, infection ratio reduced from 9.0% to 8.0% during first quarter of 2023. With the increase in general provision, the overall coverage ratio has been maintained at a desirable level of 95.6%. With the improvement in earnings of the Bank, the cost to income ratio has improved from 49.8% for the year 2022 to 47.9% for the quarter ended Mar 2023. The deposit book of the Bank observed contraction by 1.2%, however, the Bank is poised to grow its deposit book during remaining part of the year on the back of improved CASA mix. With rise in profitability and improved credit risk profile of the Bank, Capital Adequacy Ratio (CAR) of the Bank recorded at 17.9%, well above the regulatory threshold of 11.50%. In order to reinforce its capital base and fortify its asset base, the Bank is in process of listing of its Additional Tier-1 Sukuk (Ehad Sukuk 2) to the tune of Rs. 1 billion, out of which Rs. 850 million worth of Pre-IPO phase has already been completed. Going forward, in order to continue its growth trajectory, the Bank will focus on increasing its branch network, grow its deposit book and improving the overall customer experience through leveraging technology and expanding its digital footprint.