The State Bank of Pakistan (SBP) stated that the network of Islamic banking industry comprised of 21 Islamic banking institutions such as; 5 full-fledged Islamic banks (IBs) and 16 conventional banks having standalone Islamic banking branches (IBBs) by end September, 2018. SBP also recorded that the branch network of Islamic banking industry was posted at 2,709 (spread across 111 districts) by close September, 2018. Province/Region wise breakup of branches explained that Punjab and Sindh jointly accounted for 77.2 percent share in overall Islamic banking industry
’s branch network. The number of Islamic banking windows operated through conventional banks having standalone Islamic banking branches reached at 1,284.
Furthermore, statistics also showed that assets of Islamic banking industry were posted at Rs. 2,458 billion by end September, 2018 as against to Rs. 2,482 billion in the last quarter. The statement also mentioned that analysis of assets composition explains that financing (net) posted a growth of 3.2 percent (Rs. 42 billion) during the period under review. On the other hand, investments (net) of Islamic banking industry fell by 3.7 percent (Rs. 20 billion). Market share of Islamic banking industry’s assets in overall banking industry’s assets rose to 13.6 percent by end September, 2018 as against to 12.9 percent in the last quarter. The share of net financing and investments in total assets (net) of Islamic banking industry was posted at 55.6 percent and 21.8 percent, respectively by end September, 2018.
Analysis of assets by breakup among full-fledged Islamic banks and Islamic banking branches of conventional banks explains that assets of full-fledged Islamic banks rose by 2 percent (Rs. 29 billion) and were recorded at Rs. 1,481 billion by end September, 2018. In contrast, assets of Islamic banking branches of conventional banks declined by 5.1 percent (Rs. 53 billion) and reached at Rs. 977 billion by end September, 2018. In terms of share, full-fledged Islamic banks and Islamic banking branches of conventional banks accounted for 60.2 percent and 39.8 percent share, respectively in overall assets of Islamic banking industry.
SBP also mentioned in a statement that Investments (net) of Islamic banking industry were posted at Rs. 535 billion by end September, 2018 as against to Rs. 555 billion in the last quarter. During the period under review, investments (net) of full-fledged Islamic banks rose by Rs. 4 billion to stand Rs. 248 billion. However, investments (net) of Islamic banking branches of conventional banks explained a fall of Rs. 24 billion and reached at Rs. 287 billion by end September, 2018. During the period under review, financing and related assets (net) of Islamic banking industry increased by 3.2 percent (Rs. 42 billion) to reach Rs. 1,365 billion by end September, 2018.
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Bifurcation of financing and related assets (net) among full-fledged Islamic banks and Islamic banking branches of conventional banks explained that financing and related assets (net) of full-fledged Islamic banks reflected a rise of 6.2 percent (Rs. 48 billion) during the period under review to reach Rs. 830 billion by end September, 2018. However, financing and related assets (net) of Islamic banking branches of conventional banks fell by 1.1 percent (Rs. 6 billion) and were posted at Rs. 535 billion by end September, 2018. Asset quality indicators of Islamic banking industry including non-performing finances (NPFs) to financing (gross) and net NPFs to net-financing were posted at 2.7 percent and 0.5 percent, respectively by end September, 2018.
Deposits of Islamic banking industry were posted at Rs. 2,005 billion by end September, 2018 as against to Rs. 2,033 billion in the last quarter. Market share of Islamic banking industry’s deposits in overall banking industry’s deposits reached at 14.7 percent by end September, 2018. During the period under review, fixed deposits rose by 12.4 percent (Rs. 47 billion); while current (non-remunerative) and saving deposits posted a fall of 6.4 percent (Rs. 45 billion) and 1.1 percent (Rs. 9 billion), respectively. Bifurcation of deposits among full-fledged Islamic banks and Islamic banking branches of conventional banks shows that deposits of full-fledged Islamic banks increased by 2.3 percent (Rs. 28 billion) to stand Rs. 1,242 billion by end September, 2018. In contrast, deposits of Islamic banking branches of conventional banks fell by 6.9 percent (Rs. 56 billion) and were posted at Rs. 763 billion during the period under review. The share of full-fledged Islamic banks and Islamic banking branches of conventional banks in overall deposits of Islamic banking industry was posted at 62 percent and 38 percent, respectively by end September, 2018. Furthermore, Liquid assets to total assets and liquid assets to total deposits ratios of Islamic banking industry were recorded at 22.8 percent and 27.9 percent, respectively by end September, 2018. During the period under review, capital to total assets and capital minus net non-performing assets to total assets ratios of Islamic banking industry were posted at 6.4 percent and 6.1 percent, respectively. Profit before tax of Islamic banking industry rose to Rs. 23 billion by end September, 2018 as against to Rs. 18 billion in the same quarter last year. Profitability ratios like return on assets and return on equity (before tax) reached at 1.3 percent and 20.2 percent, respectively by end September, 2018.