BankIslami's acquisition of KASB Bank cost it bottom-line as it third quarter profit showed a decline of 53 percent compared with the profit of 2014. According to financial disclosure, the second largest full-fledged Islamic Bank recorded a profit of Rs 135 million by end of September 2015 as compared to Rs 291 million reported in the similar period of previous calendar year. The overall revenue income grew to Rs 6.47 billion as compared to Rs 5.707 billion since 2014. The acquisition of KASB Bank with operations, branches and staff members also delayed its auditing and reporting process of financial results. It is also hectic for the bank management to utilize optimally the inherited liabilities and deposits of the bank in a way as challenge to keep bank remain in profit on its balance sheet.
On the positive side, its deposits grew to Rs 145 billion by September 2015 as compared to Rs 90 billion which was standing on the closing of 2014 accounts. Retaining deposits at nearly Rs 150 billion is success of the bank which witnessed outflow of deposits by depositors transferred from previous KASB Bank.
The payable bill expense also grew to 1.353 billion by September end as compared to less than one billion, Rs 918 million standing by end of 2014. Of course, the bank witnessed increase in the administrative expenses from Rs 2.48 billion to Rs 3.172 billion in the said period which surged due operational growth of the bank subsequently acquisition of the bank. The bad debts written off directly increased hugely to Rs 120 billion from Rs 65 billion.
Besides acquisition process, BankIslami also shares transactions from its one major sponsor to another however it financial soundness is stable. However the bank's shareholders suffered again with no dividends income or bonus share announced by the directors of bank.