Islamic Window: Al Habib net assets grow by 65.08pct in 1HFY11
By: Riffat Mughal
Bank Al Habib Islamic banking branches unaudited net assets
surged by 65.08 percent during first half of the financial year 2011
(1HFY11) as it reached to Rs 1.086 billion as compared to audited net
assets of Rs 0.657 billion on December 31, 2010.
Bank's Islamic banking business financing and receivables climbed by
32.27 percent to Rs 6.683 billion during the period. Bank's Murabaha
jumped by 78.37 percent to Rs 2.668 billion as against Rs 1.495 billion
on December 31, 2010.
The major change was observed in Ijarah which declined by 65.17
percent to Rs 0.108 billion as compared to Rs 0.311 billion in the same
period previous year. However, bank's diminishing Musharakah business
surged by 45.43 percent to Rs 1.919 billion in 1HFY11. Export refinance
Murabaha fell by 52 percent to Rs 0.250 billion while export refinance
Istisna surged by 217.51 percent to Rs 1.035 billion. Other assets
declined during the period under review by 48.37 percent to Rs 0.555
billion.
Decline in earnings in long term financing assets like Ijarah is not
a healthy sign, but it was complimented by increase in another long
term financing asset which is Diminishing Musharakah. Nevertheless, with
increase in Murabaha business, the Islamic window of the bank has been
able to keep its Advances to Deposits (ADR) at a respectable level.
Bank's Islamic banking fund went up by 80 percent to Rs 0.9
billion, unremitted profit upped by 17.93 percent to Rs 0.184 billion
and its surplus on revaluation of net assets reached Rs 0.00182 billion.
Bank Al Habib Islamic windows cash and balances with treasury banks
declined by 1.62 percent to Rs 0.258 billion, while investments surged
by 51.27 percent to Rs 1.468 billion in 1HFY11.
On the liabilities side, total deposits and other accounts increased
by 8.34 percent to Rs 4.726 billion in 1HFY11 against Rs 4.362 billion
reported on December 31, 2010.
Major contribution in deposits and other accounts witnessed surge in
saving deposits which inclined by 93.53 percent and touched Rs 0.529
billion during the period. Bank's Islamic banking business unaudited
current accounts also increased by 18.27 percent to Rs 0.826 billion and
term deposits upped by 14.62 percent to Rs 1.931 billion.
Bank Al Habib Islamic Banking branch offers Deposit Schemes and
Islamic Financing for Individuals / Traders / Industries which are
completely based on Islamic Shariah principles. The bank is operating 10
Islamic Banking branches (December 31, 2010: 08).
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