KARACHI: Islamic banking grew by 9.6 per cent during the quarter ending Dec 31, 2019 as the sector’s assets posted double-digit growth of 23.5pc to reach Rs3.284 trillion, according to the Islamic Banking Bulletin released by the State Bank of Pakistan (SBP) on Friday.

In absolute terms, the industry’s assets increased by Rs289bn during the three months under review.

The data showed Islamic banking assets and deposits share in the country’s overall banking sector rose to 14.9pc and 16.6pc respectively.

Sector’s Islamic banking profit before tax was recorded at Rs66bn with profitability ratios like return on assets and return on equity clocking in at 2.2pc and 34.4pc respectively. On the other hand, the sector’s operating expense to gross income ratio improved to 51.5pc from 52.5pc in the quarter ending July-September quarter.

The sector’s financing and related assets also rose by 5pc to Rs1.62tr with diminishing musharaka and musharaka accounting for nearly 34.1pc and 19.8pc respectively. Sector-wise, the financing was energy and textile sectors raked up most of the Islamic financing at 18.4pc and 13.4pc respectively.

Pakistan’s Islamic banking sector consists of 22 islamic banks and 17 conventional banks with more than 3,226 branches spread across the country.

Published in Dawn, March 14th, 2020