With the rising acceptability of Islamic Banking services in the country, coupled with the increasing penetration of Islamic Bank mainly from its branches and exclusive products, the value of the deposits of the Islamic Banking Industry finally touched the mark of Rs. 2 trillion by the end of June 2018.
This is a notable achievement of Islamic Banking Industry showing the confidence of the public on the system of Sharia financing. It means a big section of masses and corporation prefers keeping their money accounts in Islamic banks, both in full-fledged Islamic Banks and Islamic Banking Division (branches) of conventional banks.
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According to State Bank of Pakistan, the deposits of Islamic Banking Industry surged to Rs. 2.033 trillion by end of June 2018. The market share of Islamic banking industry’s deposits in overall banking industry’s deposits increased to 14.8 percent by June.
Breakup of deposits among full-fledged Islamic banks and Islamic banking branches of conventional banks reveals that deposits of full-fledged Islamic banks increased to stand at Rs. 1.214 trillion by June 2018. Similarly, deposits of Islamic banking branches of conventional bank reached to Rs. 819 billion.
The share of full-fledged Islamic banks and Islamic banking branches of conventional banks in overall deposits of Islamic banking industry stood at 59.7 percent and 40.3 percent, respectively.
The deposits maintained in current and saving deposits stood at Rs. 710 billion and Rs.812 billion, which shows that customers are eager to earn profit from Islamic banks based on Sharia guidelines compared with the deposits of conventional banks in which public puts their money in current accounts instead of keeping in saving accounts.
Deposits kept in a fixed account and related products are also impressive valuing Rs.378 billion. Besides, Financial Institutions, corporations, public sector department and NGOs maintain their deposits of Rs. 107 billion.
Further, the asset base of the Islamic banking industry surged to Rs. 2.482 trillion. Islamic banks financing to various clients surged to Rs. 555 billion.
The profit before tax of Islamic banking industry stood at Rs. 15 billion by end first half of 2018 compared to Rs. 12 billion in the same quarter last year. Profitability ratios like return on assets and return on equity (before tax) were recorded at 1.3 percent and 20.9 percent, respectively.
During the period under review, operating expense to gross income ratio declined by 3 percent and stood at 64.5 percent.
