About the Bank Islami:
The BankIslami Pakistan limited incorporated in October 2004. BankIslami started its Banking operations on 7th April 2006 with its first branch in SITE, Karachi.
Registered Office
11th Floor, Executive Tower,
Dolmen City, Marine Drive,
Block-4 Clifton,
Karachi.
Phone: (92-21) 111- 247(BIP)-111
Fax: (92-21) 35378373
Email: info@bankislami.com.pk
Website
Key Financial and Operating data: (year ended Dec 2010)
Total Assets: 45,036,000
Net Assets: 4,766,386
No. of Branches: 102
No. of Staff: 1347
Profit or Loss per Share(Year Ended Dec 2010):0.09
Profit or Loss per Share (Quarted Ended March 2011):0.093
Market Price per Share (As of 9/9/2011): Rs 3.35 Per share
Credit Rating As of June 2011
Short Term: A1
Long Term: A
Income Analysis:
The bank achieved breakeven during the year ended Dec 2010. The bank barely covers its administrative expenses out of its core banking activities i.e. taking deposits and undertaking loans and investment activities. Net spread income has shown up trend owing to increase in deposit base. Both profit before tax and profit after tax remained negative most of the time.
Return and Efficiency:
The return to net assets remained negative over the years but during the year ended December 2010 the return is albeit positive although insignificant. The cost of deposit is high in terms of administrative expenses incurred. Similarly spread income over deposits is declining over the years 2007 to 2010.
Risk, Liquidity and Depth of Banking Operations:
The banks risk profile is increasing over the years 2006-2010 owing to increase in leverage. The liquidity of the banks asset profile is high owing to the higher proportion of liquid investments as compared to the ill-liquid loan portfolio. However, the bank ability to extend loan is reduced over the years.
Conclusion:
Overall financial performance of the bank was not entertaining. The bank need to improve capital so that it can increase its banking operation i.e. accepting deposits and extending loans. The banks efficiency and return parameters are not satisfactory.
No comments :
Post a Comment