ISLAMABAD: In Pakistan the assets of Islamic Banking Industry (IBI) recorded an all-time high quarterly growth of Rs836 billion during April to June 2022. The overall assets of IBI crossed six-trillion mark, mounting Rs6,781 billion in June 2022.
The State Bank of Pakistan (SBP) has mentioned these stunning good capital market developments in its latest Islamic Banking Bulletin.
Market share of Islamic banking assets and deposits in the overall banking industry stood at 19.5 percent and 20.5pc, respectively by end June 2022. While the market share of financing of IBI in advances of overall banking industry increased to 27.2 percent by end June 2022 as against 24 percent as of June 2021.
During the FY22, the composition of Islamic banking industry (IBI) remained same with 22 Islamic Banking Institutions (IBIs), including five full-fledged Islamic Banks (IBs) and 17 Conventional Banks having Islamic Banking Branches (IBBs), Mettis Global reported today.
During the period under review, 103 branches were added to the branch network of IBI. Correspondingly, the branch network of IBI crossed four thousand mark and was recorded at 4,086 (spread across 129 districts of the country) by end June 2022.
IBI’s assets have seen a strong growing trend over the years. This rising path also sustained during the period under review and assets of IBI reflected double-digit growth of 14.1pc.
In terms of amount, the asset base of IBI enlarged by Rs836bn and was recorded at Rs6.7tr by end June 2022. It is noteworthy to mention that this is biggest ever increase in assets’ size of IBI in a single quarter.
The aforesaid growth in assets was mainly due to investments (net), which showed a quarterly rise of Rs470bn (21.4 percent). Besides, financing (net) of IBI was also up Rs269bn (10 percent) during the period under review. The share of investments (net) and financing (net) in total assets of IBI registered at 44pc and 39pc, respectively by end June 2022.
Market share of IBI’s assets in overall banking assets stood at 19.5pc by end June 2022.
Investments (net) of IBI reflected a sizable growth of Rs470bn (21.4pc) during the period under review and touched Rs2.6tr by end June 2022. The main reason behind this increase was deployment of funds by IBI in the Government of Pakistan (GoP) domestic Ijarah Sukuk (GIS).
During the period under review, financing & related assets (net) of IBI recorded a healthy increase of Rs269bn (10pc) and were recorded at Rs2.9tr by end June 2022. Bifurcation of financing and related assets (net) among IBs and IBBs divulges that financing and related asset (net) of IBs witnessed an increase of Rs125bn (9.1pc) during the period under review and stood at Rs1.5tr by end June 2022.