The Islamic banking industry has been growing steadily and consistently in all the segment of business since 2015.
The sector recorded strong growth in the values of assets and deposits since 2015 that grew by 32 percent and 29.7 percent year-over-year (YoY) in the second quarter of 2021 respectively.
According to the State Bank of Pakistan (SBP), the industry’s assets expanded by Rs. 408 billion during the April to June quarter in 2021 and stood at Rs. 4.797 trillion by the end of June 2021.
The main reason behind this growth in the assets is the industry’s net financing that had a quarterly rise of Rs. 165 billion during the fourth quarter of FY 2021. Similarly, the industry’s net investment exhibited a surge of Rs 17.6 billion during the period under review.
The government issued a domestic Ijarah Sukuk amounting to Rs. 28.9 billion (special reopening of GIS VRR-22).
Additionally, the financing and related assets crossed the Rs. 2 trillion mark, rising by Rs. 165 billion to hit Rs 2.118 trillion by the end of June 2021.
The deposits also had quarterly growth of Rs. 365 billion to reach Rs. 3.822 trillion in the fourth quarter of FY 2021, as deposits mobilization continued to have an encouraging trend from customers and corporations.
The profit before the tax of the Islamic banking industry was recorded at Rs. 42.6 billion by the end of June 2021 as compared to Rs. 49.0 billion in the same quarter last year.
During the quarter under review, 79 branches were added to the industry’s branch network, which pushed the total number of branches up to 3,583 across 124 districts of the country by the end of June 2021.
The branch network is mainly concentrated in the Punjab, followed by Sindh and Khyber Pakhtunkhwa.
The number of Islamic banking windows (dedicated counters at conventional branches) operated was 1,562 by the end of June 2021.