About 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. The bank is engaged in corporate, commercial, consumer, retail banking
and investment activities. Dubai Bank and Jehangir Siddiqui is major
shareholder of this bank and hold more than 20% outstanding shares.
Website
Key Data:
The bank increased its presence
by spreading its branch network during 2011-13. The deposits of the bank almost
doubled during this period. However, the bank does not meet minimum capital of
Rupees 10 Billion set by State Bank of Pakistan. The bank is in the process of
increasing its capital.
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Key Data BANK ISLAMI PAKISTAN
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||||||
|
2011
|
2012
|
2013
|
Mar-14
|
Jun-14
|
Sep-14
|
|
|
Net Assets (‘000)
|
5,312,638
|
5,572,454
|
6,242,201
|
6,524,974
|
6,884,816
|
6,811,722
|
|
Branches (No)
|
102
|
144
|
201
|
201
|
201
|
201
|
|
Employees (No)
|
1,448
|
1,410
|
1,520
|
|||
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Deposits (‘000)
|
50,568,785
|
64,216,485
|
75,225,869
|
77,576,016
|
85,466,298
|
89,589,962
|
|
Deposit growth %
|
32.38
|
26.99
|
17.14
|
3.12
|
13.61
|
19.09
|
Income Profile
The banks Net Spread
Income as percentage of Deposits is declining. From 6.9% in 2011, it has
declined to 4% in 2013. The bank merely covers its admin expenses out of its
core banking activities. The earnings per share EPS is also low.
|
2011
|
2012
|
2013
|
Mar-14
|
Jun-14
|
Sep-14
|
|
|
Net Spread Income NSI
|
2,618,799
|
2,468,341
|
2,499,504
|
719,649
|
782,398
|
898,546
|
|
NSI as % of Deposits T-1
|
6.86
|
4.88
|
3.89
|
0.96
|
1.01
|
1.05
|
|
NSI /Admin expenses
|
1.22
|
1.09
|
1.00
|
0.95
|
0.95
|
1.01
|
|
EPS /LPS
|
0.78
|
0.78
|
0.35
|
0.14
|
0.16
|
0.25
|
Leverage:
Over the period 2011-13,
the bank has assumed significant risk in its loan portfolio as evidenced by its
advances to equity ratio. However the loan portfolio shows very low infection.
The bank should increase its equity capital.
|
2011
|
2012
|
2013
|
Mar-14
|
Jun-14
|
Sep-14
|
|
|
Total Assets/equity
|
11.07
|
13.32
|
13.91
|
13.54
|
14.11
|
15.11
|
|
advances/equity
|
3.79
|
4.92
|
6.14
|
5.82
|
5.48
|
6.32
|
|
Non-Performing Loans/Advances T-1
|
4.79
|
5.99
|
4.04
|
2.96
|
2.88
|
3.01
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Stock Valuation:
|
2011
|
2012
|
2013
|
Mar-14
|
Jun-14
|
Sep-14
|
|||||||
|
Book Value
|
10.06
|
10.55
|
11.82
|
12.36
|
13.04
|
12.90
|
||||||
|
book value without revaluation reserve
|
9.74
|
10.52
|
10.45
|
10.59
|
11.28
|
11.54
|
||||||
|
book value without RR and adjusted for NPL
|
8.84
|
9.12
|
9.44
|
9.56
|
10.29
|
10.33
|
||||||
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RR Revaluation Reserve NPL Non-performing Loans
|
||||||||||||
|
01-2012-11-2014
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Maximum
|
Minimum
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Range
|
Average
|
Current Price
|
|
||||||
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Stock Price
|
12.04
|
3.09
|
8.95
|
8.13
|
10.5
|
|
||||||
Dividend distribution:
The bank has no history
of dividend distribution.
Conclusion:
The bank is in the
expansion mode and facing bottlenecks due to short of capital. The banks income
profile is sustainable.
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