ISLAMABAD – Islamic Banking Industry in Pakistan makes historicalachievement in 2019 as the profit of the industry hits unprecedented levels.
Islamic Banking Industry (IBI) has hit the profit-before-tax over 100percent in the first half of 2019 as against similar period last year.
According to the State Bank of Pakistan, the profit before tax of theIslamic banking industry grew significantly to Rs. 32 billion from theperiod of January to July 2019 as compared with Rs. 15 billion reported inthe same period of 2018, showing a year-on-year growth of 113 percent.
The industry comprises of 5 full-fledged Islamic banks and 17 Islamicbanking windows of conventional banks, totaling 22 different options forthe public.
Some of the prominent banks which reported growth in profitability areMeezan Bank Islami and Islamic banking windows of HBL and UBL.
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The profits of the Islamic banks were driven in tandem with widening spreador financing rate, which went up due to the increase of KIBOR and policyrates by the central bank.
The outstanding profitability of the Islamic banking industry showed theconsistent and hyperactive penetration of the industry in the targetedsectors and areas but it also depicted the acceptance of the banking systemamong the public. Moreover, the financial performance of the banks in termsof strategic planning and business operations also contributedsignificantly to the industry’s profitability.
