The State Bank of Pakistan (SBP), released its quarterly Islamic Banking Bulletin for December 2020, which indicated a 30% growth in Shariah-compliant banking assets for CY 2020.
Moody’s said that “The growth is credit positive for Pakistani banks because it attracts customers from the previously unbanked population, which creates new business opportunities and boosts banks’ financial performance.
Facts were:
- Pakistan’s Islamic banking assets grew to Rs. 4.3 trillion as of CY20, which makes up 17% of the total banking system assets.
- Islamic deposits increased by 22% in the same period.
- Islamic financing also grew faster than conventional loans and were Rs. 1.9 trillion, or 23% of Pakistani banks’ total loans at year-end 2020.
- The profitability of Islamic operations has been at 2.4% which is higher than the overall industry ratio of 1.8%
- Islamic nonperforming financing (NPF) was at 3.2%, lower than the overall industry’s 9.2%.
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