The Islamic banking industry (IBI) has achieved the highest year-on-year growth in assets and deposits since 2015 increasing the market share in the overall banking industry to 17pc and 18.7pc, respectively.
A report by Dawn which compiled State Bank of Pakistan’s (SBP) latest bulletin for April-June quarter reported that assets and deposits of IBI grew 32 per cent and 29.7pc, respectively.
The assets expanded by Rs408 billion to Rs4,797bn and deposits grew by Rs365bn to Rs3,822bn by June 30, 2021.
Review of sector wise financing shows that major portion of financing was extended to textile (13.9pc) and production and transmission of energy (13.6pc) sectors. (Table 3)The report, however, stated that the profit-before-tax dropped by 13pc to Rs42.6bn by June 30 compared to Rs49bn in the same quarter last year. Before tax earnings ratios like return on assets (ROA) and return on equity (ROE) were recorded at 1.9pc and 31.1pc, respectively.
Client wise financing remained concentrated in the corporate sector, having a share of 68.8pcin overall financing of IBI, followed by commodity financing and consumer financing with a share of 15.2pc and 10.6pc, respectively.
The share of SMEs and agriculture financing in overall financing of IBI was recorded at 2.6 per cent and 1.2pc, respectively.
