Islamic Banking Industry in Pakistan makes historical achievement in 2019
ISLAMABAD - Islamic Banking Industry in Pakistan makes historical achievement in 2019 as the profit of the industry hits unprecedented levels.
Islamic Banking Industry (IBI) has hit the profit-before-tax over 100 percent in the first half of 2019 as against similar period last year.
According to the State Bank of Pakistan, the profit before tax of the Islamic banking industry grew significantly to Rs. 32 billion from the period of January to July 2019 as compared with Rs. 15 billion reported in the same period of 2018, showing a year-on-year growth of 113 percent.
The industry comprises of 5 full-fledged Islamic banks and 17 Islamic banking windows of conventional banks, totaling 22 different options for the public.
Some of the prominent banks which reported growth in profitability are Meezan Bank Islami and Islamic banking windows of HBL and UBL.
The profits of the Islamic banks were driven in tandem with widening spread or financing rate, which went up due to the increase of KIBOR and policy rates by the central bank.
The outstanding profitability of the Islamic banking industry showed the consistent and hyperactive penetration of the industry in the targeted sectors and areas but it also depicted the acceptance of the banking system among the public. Moreover, the financial performance of the banks in terms of strategic planning and business operations also contributed significantly to the industry’s profitability.