KARACHI:

The Pak Banker - - FRONT PAGE -

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.

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