The Board of Directors of BankIslami Pakistan Limited (‘The Bank’ or ‘BankIslami’) in their meeting held on August 28, 2020 in Karachi approved the Bank’s interim financial results for the first half year ended June 30, 2020. BankIslami generated operating profits (before provisions and tax) to the tune of Rs. 3,382 Mn, registered a growth of 89% from last year. Growth in operating profits was driven by higher spreads, enhancement in core earning assets on the back of increase in deposits and improvement in cost to income ratio of the Bank. Provision against credit losses increased by around Rs. 670 Mn as the Bank, on prudent basis, booked subjective charge against potential impairments. In spite of this, the Bank posted a profit after tax of Rs. 1,074 Mn for the period ended June 30, 2020 which is 85% higher than profit after tax of Rs.581 Mn recorded during the same period last year. The COVID-19 pandemic resulted in uncertainty and disruption at social and economic level across the globe. BankIslami being a responsible institution, took a various counter measuring steps based on guidelines issued by WHO, SBP and Govt. of Pakistan to ensure provision of safe and healthy environment for its employees and valued customers. Furthermore, pursuant to the deferment related relief packages announced by SBP, the Bank, profoundly engaged with its customers so that they can inhibit the financial challenges ensuing from COVID – 19. The Bank also approached existing and new customers to extend credit facilities under specialized re-financing schemes introduced by the apex authority. In order to cement its risk absorption capacity and strengthen its capital adequacy, the Bank successfully issued Pakistan’s first ever Listed Islamic Additional Tier-I Capital Sukuk (ADT-1 Sukuk’) during the current year. The total issue size of ADT-1 Sukuk is Rs.2 Bn, of which Rs.1.7 Bn was raised by the Bank during the Pre-IPO phase in 2019, while the remaining Rs. 300 Mn was collected via successful IPO which was oversubscribed by 1.07 times, Alhamdullilah. The second quarter of 2020 was influenced by economic challenges escalated due to COVID-19, resulting in a policy rate cut of 625 bps to facilitate the leveraged segments of the economy. In line with this, moving forward banking spreads are expected to decline, as the asset portfolio will be repriced largely during the latter half of the year 2020. Risk averse strategy towards credit offtake, re-profiling of deposits with greater focus towards accumulating low cost CASA deposits and controlled growth in operating expenses will be Bank’s focal areas going forward.