Deposits of Islamic banks grow by 28pc to Rs3.39 trillion

Deposits of Islamic banks grow by 28pc to Rs3.39 trillion

KARACHI: Deposits of Islamic banking institutions have increased by 28 percent to Rs3.39 trillion for the year ended December 31, 2020, the State Bank of Pakistan (SBP) said on Wednesday.

The deposits of the Islamic banks were at Rs2.65 trillion by year ended December 31, 2019.

The market share of Islamic banks in overall banking industry has increased to 18.3 percent by year ended December 31, 2020 as compared with 16.6 percent in the preceding year.

Assets of the Islamic banks also surged by 30 percent to Rs4.27 trillion for the year ended December 31, 2020 as compared with Rs3.28 trillion in the preceding year. Whereas the share of Islamic banks in terms of assets increased to 17 percent by year December 31, 2020 as compared with 14.9 percent a year ago.

The SBP said that during the quarter under review (October-December 2020), the asset base of Islamic Banking Industry (IBI) grew by 12.1 percent (Rs. 461 billion) and reached Rs4,269 billion.

Similarly, the deposits of Islamic banking industry depicted a quarterly growth of 11.7 percent (Rs. 355 billion) and were recorded at Rs. 3,389 billion.

‘Assets’ of IBI witnessed YoY growth of 30 percent, which is the highest growth in asset base since December 2012, whereas ‘deposits’ also registered YoY growth of 27.8 percent, the highest growth since December 2015.

The growth witnessed in the Islamic banking industry shows a promising transition to the new decade even amidst COVID-19 pandemic.

In terms of market share, IBI achieved a significant mark of 17.0 percent and 18.3 percent in assets and deposits respectively, of overall banking industry by end December 2020. Moreover, profit before tax of IBI stood at Rs. 88.4 billion at the end of the December 2020.

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