KARACHI: The country’s Islamic banking sector earned Rs9.4 billion profit during July-September 2014 as compared to Rs5.6 billion it earned during the same period of 2013.
According to State Bank of Pakistan (SBP), assets of the Islamic banking industry increased by 1.3 per cent to Rs1,102 billion during the quarter as compared to Rs1,089 billion in the previous quarter. Similarly, its deposits rose to Rs934 billion during the quarter.
The report said that the market share of Islamic banking assets and deposits in overall banking industry increased from 9.8pc and 10.6pc by end-June 2014 to 9.9pc and 10.7pc respectively by end-September 2014,” said the bulletin.
Among asset quality indicators, non-performing financing (NPF) of Islamic banking industry increased during the quarter resulting in an increase in provisions against financing.
Net investments of the Islamic banking industry declined to Rs354 billion by end-September 2014 from Rs358 billion by end-June 2014, reflecting an on-quarter fall of 1pc.
This is also reflected in decline of 1.2pc in federal government securities during July-September, though they still remain the highest contributor in investments, it added. In terms of share, nearly 60pc of investments made by the industry are contributed by Islamic banks and 40pc by the Islamic banking departments of conventional banks.
Gross financing of the industry grew by 2.8pc to Rs348.5 billion by end-September from Rs339 billion by end-June. The industry’s NPF rose for the first time since September 2013 to reach Rs18.4 billion by end-September 2014, said the report, adding that all categories of non-performing financing except ‘loss’ witnessed decline. Deposits reached Rs934 billion by the end of the quarter, posting a quarterly growth of 0.2pc.
