BankIslami Pakistan Limited (“BIPL” or the “Bank”), established in October 2004. It was the first Bank to receive Islamic Banking License under Islamic Banking Policy of 2003 on March 31, 2025. The Bank, after being declared a scheduled Islamic Bank by the State Bank of Pakistan in March 2005, commenced its operations on April 07, 2006. 

The Bank was founded with the vision of becoming the leading provider of authentic Islamic banking in Pakistan. Its mission is to save humanity from Riba by offering Shariah-compliant, customer-centric, innovative financial solutions and creating value for our stakeholders, while upholding social responsibility and transparency.

The Bank is operating through 540 branches including 60 sub-branches as at CY24 (CY23: 440 branches including 60 sub-branches). The Bank is engaged in corporate, commercial, consumer, retail banking, and investment activities by offering a wide range of shariah-compliant products and services.

BankIslami Pakistan Limited is a subsidiary of JS Bank Limited (JSBL) with 75.12% shareholding. JSBL is part of the JS Group. Mr. Ali Hussain beneficially holds a 12.53% stake in BIPL, while the remaining shares are widely held by the general public. BIPL’s ownership is backed by the strong sponsorship of the JS Group — a well-renowned business group engaged in a diverse set of activities with a strategic focus on the financial sector including asset management, financial advisory, commodities trading, brokerage, insurance, and banking.

BIPL ownership is backed by strong sponsorship i.e. JS Group and it is expected to remain the same in the foreseeable future.

The sponsors demonstrate strong business acumen, underpinned by their well-diversified business interests across various sectors and their longstanding presence and active engagement in the financial and capital markets. This depth of experience reflects their strategic insight, financial discipline, and ability to navigate market dynamics effectively.

The sponsors have demonstrated both the capacity and the willingness to extend financial support to the business, if and when required. This commitment is underpinned by their strong financial standing and a proactive approach to ensuring the stability and continuity of operations, which reflects positively on the overall financial risk profile of the Bank.

The Board of Directors (BoD) comprises eight members including four independent directors, three non-executive directors, and one executive director.

Mr. Suleman Lalani - Chairperson is also Group President of Jahangir Siddiqui & Co. Limited. Mr. Lalani is a fellow member of the Institute of Chartered Accountants of Pakistan (ICAP) and has more than 30 years of experience in the financial services sector. Before his elevation to the position of Group President, he served JSCL as its Chief Executive Officer for more than a decade. Prior to joining JSCL, he was Executive Director Finance & Operations and Company Secretary of JS Investments Limited where he also served as CFO and Company Secretary for seven years. Mr. Akhtar Abbas - Independent Director is a seasoned lawyer and legislative expert with nearly two decades of experience in public and constitutional law. He has served in key advisory roles for government and legislative bodies, attended top universities, and actively contributes as a legal analyst and policy advisor. He holds multiple law and political science degrees, professional diplomas, and has participated in prestigious national and international training programs. Dr. Shamshad Akhtar - Independent Director has joined the Board in Mar'25. She is a distinguished economist and multilateral professional with over 30 years of global experience, including leadership roles at the World Bank, ADB, and UN. She has served as Pakistan's first female Governor of the State Bank and caretaker Finance Minister, and currently chairs key institutions such as the Pakistan Stock Exchange and SSGC. A recipient of the Nishan-e-Imtiaz, she is recognized globally for her expertise in financial reform and economic policy. Mr. Haider Ali Hilaly - Independent Director is a seasoned equity investor with 25 years of experience. He also served as CEO of Ithaca Capital Group, an investment holding company with a diversified portfolio across multiple sectors in Pakistan. He has a strong background in private equity, hedge funds, and financial management. He holds an MBA from London Business School. Mr. Hilaly also serves on the boards of many companies across various industries. Mr. Sulaiman Sadruddin Mehdi - Independent Director is a seasoned executive with over 22 years of experience in real estate development and financial services. He currently serves as the Independent Chairman of State Life Insurance Corporation and has held key leadership roles at TPL Developments, Cyan Limited, and the Pakistan Stock Exchange. His expertise spans investments, M&A, corporate governance, and strategic transformation across multiple sectors. Mr. Ali Hussain - Non-Executive Director brings over 48 years of experience in corporate leadership and international investments, with a focus on technology, medical electronics, and strategic ventures across the US, Europe, and Asia. He currently manages a diverse portfolio in banking, fintech, and digital technology, and actively supports early-stage tech startups through his family office in Singapore. Mr. Syed Ali Hasham - Non-Executive Director is the Chief Financial Officer of JSCL, with over a decade of experience in finance, taxation, auditing, and corporate affairs. He previously worked at Deloitte in Pakistan and Qatar and is an associate member of ICAP. He also serves on the boards of JS Infocom Limited and the Mahvash and Jahangir Siddiqui Foundation. Whereas, BIPL’s Shariah board comprises four leading Islamic scholars of the Country, namely (i) Mufti Irshad Ahmad Aijaz, (ii) Mufti Javed Ahmad, (iii) Mufti Muhammad Husain, and (iv) Mufti Syed Hussain Ahmad. The Bank comprises exceptionally qualified and seasoned professionals, whose extensive expertise in the financial sector is anticipated to significantly contribute to the strategic direction and execution of BIPL’s initiatives.

The BoD exercises close monitoring of the management’s policies and governs the Bank’s operations through its four committees namely (i) Audit Committee, (ii) Human Resource & Remuneration Committee, (iii) Risk Management Committee, and (iv) IT Committee.

M/s KPMG Taseer Hadi & Co., Chartered Accountants are the external auditors of the Bank classified in category 'A' by SBP. They have expressed an unqualified opinion for the financial statements for the year ended on December 31, 2024.

BIPL’s organizational structure is divided into fourteen functional departments i) Distribution, ii) Corporate Banking, iii) Consumer, iv) Treasury/ FIs, v) Risk Management, vi) Product and Shariah Structuring, vii) Human Resource, viii) Legal, ix) Finance, x) Operations, xi) Security and Govt. Relations, xii) IT, xiii) Internal Audit and xiv) Compliance. All department heads have significant relevant professional experience and report to the CEO and Deputy CEO. The Bank also has an internal audit department, reporting directly to the Board’s Audit Committee.

Mr. Rizwan Ata - CEO & President of BIPL, is a seasoned banker with over 32 years of rich experience in financial sector including over 17 years of experience in Islamic Banking industry. He has joined BIPL on January 01, 2019. Previously, he was Group Head - Islamic Banking at Bank Alfalah Limited. He has also worked in different managerial positions at Lahore, Faisalabad, Sialkot & Multan while working with Emirates Bank International PJSC. Moreover, during CY24, Mr. Imran Haleem Shaikh - Deputy CEO is a highly experienced professional with over 18 years of experience in the financial sector. His expertise has been instrumental in shaping the success of various organizations, most recently at JS Bank where he served as the Chief Operating Officer. Mr. Sohail Sikander is serving as a Chief Financial Officer of BankIslami Pakistan Limited since 2016. Prior to joining BIPL, he has served as Chief Financial Officer at Burj Bank Limited and Dawood Family Takaful Limited. Mr. Sajjad Hussain Qureshi - Chief Risk Officer is a seasoned banking professional with over 24 years of experience in risk management, credit administration, and consumer risk. He has a strong background in implementing automation and control procedures to enhance regulatory compliance. Before joining BankIslami, he held significant leadership roles at JS Bank, Bank Makramah, and Samba Bank Limited. Mr. Masood Muhammad Khan - Group Head - Compliance is associated with BankIslami Pakistan Limited since January 2015. Previously he has worked in senior positions at Bank Al Habib, National Accountability Bureau, Askari Bank and SaudiPak Commercial Bank (now UBL). Mr. Masood Holds a master's degree in International Relations from Karachi University, with overall 23 years of working experience.

The Bank has eight committees at the management level: (i) Business Strategy & Review Committee (BSRC), (ii) Compliance & Controls Committee (CCM), (iii) Information Technology Steering Committee (ITSC), (iv) Asset and Liability Committee (ALCO), (v) Management Credit Committee (MCC), (vi) Service Excellence Committee (SEC), (vii) Procurement & Disposal Committee (PDC) & (viii) Disciplinary Action Committee (DAC).

The Bank operates using a comprehensive Islamic Banking application that has inbuilt Shariah compliance features – iMal, a core banking software. For enhanced customer experience, the Bank is in the process of upgrading its core banking application. The Bank has launched its digital mobile application, branded as 'AIK', offering a comprehensive suite of financial services that closely mirrors the functionality of the Parent Bank's app, 'Zindagi'.  As of May 2025, the platform has successfully mobilized deposits amounting to PKR 2.1mln, reflecting initial customer traction and the Bank’s strategic commitment to expanding its presence in the digital banking space

The internal Risk Rating Module is being used by the Bank. The module supports the Bank in its Obligor Risk Rating (ORR) process by adding more objectivity to the credit appraisal process. The module supports the Bank in its Obligor Risk Rating (ORR) process by adding more objectivity to the credit appraisal process. The Bank has assigned a to 58% of its obligors under "Good and above" credit risk rating , while another 21% fall under the "Marginal and above" category. Approximately 2% of obligors are rated under "Overdue but not Classified and above," and 19% are categorized under "Loss and above."

During the year, Pakistan's Banking sector's total assets posted growth of ~15.98% YoY whilst investments surged by ~14.68% to PKR ~29.4trln (endDec23: PKR ~25.6trln). Gross Advances of the sector recorded growth of ~29.11% to stand at PKR ~16.914trln (end-Dec23: PKR ~13.101trln). Non-performing loans witnessed an increase of 7.35%% YoY to PKR ~1,067bln (end-Dec23: ~994bln). The CAR averaged at 20.4% (end-Dec23: 19.4%). Looking ahead, with the expected monetary rate cut, Banks are likely to sustain some dilution in profitability by CY25.

At the end of CY24, BIPL, holds a deposit base of PKR 559.2bln (CY23: PKR 522.5bln). The deposit share of the Bank remained intact at 2% based on customer deposits on standalone basis at the end of CY24 (CY23: 2%). 

During CY24, BIPL’s net interest margin increased by 15% YoY basis to stand at PKR 46.4bln (CY23: PKR 40.2bln) with gross return witnessing an increase of 22% to stand at PKR 112.8bln (CY23: PKR 92.8bln). The asset yield of the Bank declined to 18.8% (CY23: 19.3%). Whereas, the Bank’s cost of funds inclined to 10.7% (CY23: 10.2%). Consequently, the Bank’s spread contracted to 8% (CY23: 9%). 

During CY24, the other income of the Bank inclined to PKR 4.6bln (CY23: PKR 3.3bln) with a major contribution of fee and commission income (CY24: PKR 2.3bln; CY23: PKR 1.8bln). However, this gain was partially offset by a sharp rise in other expenses, which surged by 37% YoY to PKR 22.7bln (CY23: PKR 16.6bln). The profit after taxation strengthened to PKR 11.8bln (CY23: PKR 11bln) reflecting the Bank’s ability to maintain profitability amid rising cost pressures due to expansion of branch network. The sustained earnings growth, supported by improved non-core income, highlights the Bank’s resilience and diversified income base.

Going forward, the Bank remains committed to achieving sustainable growth in its balance sheet, profitability, and customer base through efficient marketing, branch expansion, and process improvement by leveraging technology, expanding its digital footprint, garnering trade business, and introducing customer centric and competitive Shariah-compliant products. In pursuit of this, the Bank has formulated a comprehensive long-term Strategic Business Plan covering the period from 2024 to 2026.

At end of CY24, BIPL's net advances registered a notable growth of 29% to stand at PKR 296bln (end-CY23: PKR 230bln). The Bank's net Advance-to-Deposit Ratio (ADR) was reported at 52.9% (CY23: 44.1%). The non-performing loans-net (NPLs) decreased to PKR 2bln (CY23: PKR 3.4bln) during CY24. Meanwhile, the infection ratio is showing an improvement to 7.4% (CY23: 9%), indicating sustained asset quality despite the growth in lending.

At the end of CY24, BIPL’s investment portfolio expanded to PKR 345bln (CY23: PKR 314bln), reflecting a prudent allocation strategy. The growth was primarily driven by an increase in Federal Government securities, which rose to PKR 311bln (CY23: PKR 278bln).

The investment mix remained heavily skewed towards government securities, indicating a conservative risk appetite, strong liquidity management, and alignment with capital preservation objectives. This composition also enhances the Bank’s earnings stability while ensuring regulatory compliance. At end of CY24, the Liquid assets to Deposits & Borrowing ratio largely remained the same and standing at 59.2% (CY23: 60.1%). The deposit base expanded to PKR 559bln (CY23: PKR 523bln), reflecting steady depositor confidence and growth momentum. Within the deposit mix, current deposits increased to PKR 208bln (CY23: PKR 182bln), while term deposits saw a slight contraction to PKR 192bln (CY23: PKR 198bln), indicating a mild shift toward low-cost funding. The Current Account (CA) and Savings Account (SA) ratios stood at 37% and 28% respectively. Overall, the deposit mobilization strategy and liquidity buffer reflect a balanced funding profile, contributing to financial stability and resilience in a high-rate environment during CY24.

At end of CY24, BIPL’s equity base strengthened to PKR 48.3bln (CY23: PKR 36.5bln), primarily driven by sustained profitability. The Bank’s Capital Adequacy Ratio (CAR) improved to 24.11% (CY23: 23.79%), while the Tier I CAR rose to 18.67% (CY23: 17.78%), reflecting a robust capital position. To strengthen its capital base, the Bank has successfully issued two Additional Tier 1 Sukuks with a cumulative value of PKR 3,000mln. These capital instruments have been structured to enhance the Bank’s capital adequacy ratio, providing a buffer for loss absorption and supporting the Bank’s long-term growth and risk management objectives. The upward trajectory in both total and core capital indicators underscores BIPL’s strong loss-absorption capacity, prudent risk-weighted asset management, and adequate capital buffers well above regulatory requirements, positioning the Bank comfortably to support future growth and absorb potential shocks.