Islamic Banking Industry makes unprecedented historic achievement in Pakistan

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Islamic Banking Industry makes unprecedented historic achievement in Pakistan

ISLAMABAD - Islamic Banking Industry makes unprecedented historic achievement in Pakistan.

The Islamic banking industry saw an increase of a staggering 100 percent in the 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. 46 billion during the nine-month period of 2019 as compared with the profit before tax of 2018, when it stood at Rs. 23 billion. ------------------------------

The growth in the Islamic banking is mainly due to the higher financing rates of the banks, increasing inclination of the general masses towards Sharia financing modes, the migration of conventional banks’ customers towards Islamic banks, the ongoing expansion of the banks, and the profitability received from various Sukuk bonds.

The balance sheet of various Islamic banks, including full-fledged banks or Islamic banking windows of conventional banks, showed a remarkable improvement.

For instance, Meezan Bank’s profit grew by over 75 percent year-on-year in the same period. BankIslami bounced back to record 8.8 times higher profit than the previous year. Dubai Islamic Bank also registered a profit of 24 percent during the period.

Islamic banking windows of conventional banks, mainly Habib Bank Limited, United Bank Limited and Bank Alfalah Limited, also showed handsome profitability in the same period.

Islamic banking industry consists of 5 full-fledged banks and 17 Islamic banking windows of different conventional banks.