The market share of Islamic banking assets and deposits in the overall banking industry was recorded at 14.4 percent and 15.9 percent, respectively by June-end, 2019. According to Islamic Banking Bulletin issued by State Bank of Pakistan (SBP), assets of Islamic banking industry registered a quarterly growth of 7.3 percent during the quarter April to June, 2019 and were recorded at Rs 2.992 trillion, compared to Rs 2.790 trillion in the previous quarter.
The market share of Islamic banking industry's assets in overall banking industry's assets was recorded at 14.4 percent by end-June, slightly down from 15 percent in March 2019. The share of net financing and investments in assets (net) of Islamic banking industry stood at 51.6 percent and 20.3 percent, respectively by end June, 2019.
Deposits of Islamic banking industry showed a quarterly growth of Rs 216 billion during the period under review and were recorded at Rs 2.415 trillion by end June, 2019 compared to Rs 2.199 trillion in the previous quarter. Market share of Islamic banking industry's deposits in overall banking industry's deposits increased to 15.9 percent by end June, 2019 compared to 15.6 percent in March 2019.
Profit before tax of Islamic banking industry was recorded at Rs 32 billion by end June, 2019 compared to Rs 15 billion in the same quarter last year. Profitability ratios like return on assets (ROA) and return on equity (ROE) before tax were recorded at 2.3 percent and 35.3 percent, respectively by end June, 2019.
Bifurcation of assets among IBs and IBBs reveals that assets of full-fledged Islamic banks increased by 8.4 percent or Rs 138 billion and were recorded at Rs 1.778 trillion by end June, 2019.
Similarly, assets of Islamic banking branches of conventional banks increased by 5.6 percent or Rs 65 billion and were recorded at Rs 1.214 trillion by end June, 2019. In terms of share, IBs accounted for 59.4 percent and IBBs 40.6 percent share in overall assets of Islamic banking industry during the period under review.
Investments (net) of Islamic banking industry were recorded at Rs 606 billion by end June, 2019 compared to Rs 617 billion in the previous quarter. During the period under review, investments (net) of both IBs and IBBs witnessed slight attrition of 0.8 percent and 3.3 percent, respectively.