ISLAMABAD – Islamic Banking Industry makes unprecedented historicachievement in Pakistan.
The Islamic banking industry saw an increase of a staggering 100 percent inthe three quarters of 2019. According to the State Bank of Pakistan (SBP),the profit before tax in the Islamic banking sector has increased to Rs. 46billion during the nine-month period of 2019 as compared with the profitbefore tax of 2018, when it stood at Rs. 23 billion.——————————
The growth in the Islamic banking is mainly due to the higher financingrates of the banks, increasing inclination of the general masses towardsSharia financing modes, the migration of conventional banks’ customerstowards Islamic banks, the ongoing expansion of the banks, and theprofitability received from various Sukuk bonds.
The balance sheet of various Islamic banks, including full-fledged banks orIslamic banking windows of conventional banks, showed a remarkableimprovement.
For instance, Meezan Bank’s profit grew by over 75 percent year-on-year inthe same period. BankIslami bounced back to record 8.8 times higher profitthan the previous year. Dubai Islamic Bank also registered a profit of 24percent during the period.
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Islamic banking windows of conventional banks, mainly Habib Bank Limited,United Bank Limited and Bank Alfalah Limited, also showed handsomeprofitability in the same period.
Islamic banking industry consists of 5 full-fledged banks and 17 Islamicbanking windows of different conventional banks.
