Islamic Banking posts growth of 27.87%


ISLAMABAD, Jun 2 (APP): The asset base of Islamic Banking
Industry during the Calander Year 2015, stood at Rs 1.61 trillion compared to Rs 1.3 trillion in 2014, hence registered a growth of 27.87 percent.

According to Economic Survey, 2015-16 released by Finance
Minister, Ishaq Dar here on Thursday, the deposits of the IBI
reached to Rs 1.4 trillion in 2015 as compared to Rs 1.1 trillion during 2014, thus posted a growth of 28.5 percent.

Consequently, share of Islamic Banking in terms of asset in
overall banking system increased from 6.7 percent in CY10 to 11.4 percent in CY15.

While deposits share of Islamic Banking rose from 7.2 percent in CY10 to 13.2 percent in CY15.

Net investment of IBI reached to Rs.431.9 billion by end
December 2015 from Rs 392.4 billion by end September, 2015, thus posted a growth of 10.1 percent.

The growth in investments was mainly contributed by investment in federal government securities as it grew by 16.7 percent during the quarter under review on account of issuance of Government of Pakistan (GoP) Ijara Sukuk of Rs 117.7 billion in December 2015.

Likewise other components of investments like fully paid up
ordinary shares and Bonds/PTCs/Sukuk certificates also reflected a quarterly growth of 6.2 percent and 2.9 percent, resp actively during the quarter under review.

Financing and related assets (net) of IBI witnessed a growth
of 21.1 percent during the quarter October to December 2015 and reached to Rs. 645.3 billion, the survey added.

During the fourth quarter of CY15, both Return on Equity (ROE) and Return on Assets (ROA) improved by 3.5 percent and 0.3 percent, respectively compared to the previous quarter.

All mode of financing except Murabaha and Ijara registered an increasing growth trend during CY15.

Despite 56.2 percent collective contribution by Murabaha and
Diminishing Musharaka in overall financing of IBI, percent share of both in overall financing declined during CY15 due to relatively higher growth in financing modes like Musharaka, Salam and Istisna.