KARACHI: Deposits of Islamic banking system has increased by 18.8 percent to Rs2,415 billion by end-June 2019 as compared with Rs2,033 billion a year ago, State Bank of Pakistan (SBP) said on Friday.
The SBP in its Islamic Banking Bulletin said that the market share of Islamic banking systems in terms of deposits in overall banking industry increased to 15.9 percent by June 2019 as compared with 14.8 percent a year ago.
The net assets of Islamic banks registered 20.6 percent growth to Rs2,992 billion by June 2019 as compared with Rs2,482 billion by June 2018. The market share of Islamic banks in terms of assets in overall banking industry grew by 14.4 percent by June 2019 as compared with 12.9 percent in June 2018.
Number of banks by June 2019 increased to 22 as compared 21 a year ago. However, number of Islamic banking branches increased to 2,913 from 2,685 as of June 2018.
The SBP said that the network of Islamic banking industry consisted of 22 Islamic banking institutions; 5 full-fledged Islamic banks (IBs) and 17 conventional banks having standalone Islamic banking branches (IBBs) by end June, 2019.
Branch network of Islamic banking industry was recorded at 2,913 (spread across 113 districts) by end June, 2019. More than 77 percent of the branches were concentrated in Punjab and Sindh.
The number of Islamic banking windows operated by conventional banks having standalone Islamic banking branches stood at 1,348.
Investments (net) of Islamic banking industry were recorded at Rs. 606 billion by end June, 2019 compared to Rs. 617 billion in the previous quarter.
During the period under review, investments (net) of both IBs and IBBs witnessed slight attrition of 0.8 percent and 3.3 percent, respectively. This can be mainly attributed to non-issuance of sovereign sukuk during the period.
Profit before tax of Islamic banking industry was recorded at Rs. 32 billion by end June, 2019 compared to Rs. 15 billion in the same quarter last year.
Profitability ratios like return on assets (ROA) and return on equity (ROE) before tax were recorded at 2.3 percent and 35.3 percent, respectively by end June, 2019.
During the period under review, operating expense to gross income ratio witnessed further improvement and was recorded at 52.6 percent, compared to 54.7 percent in the previous quarter.