Bank of Khyber: Islamic Banking Business net assets climb by 26.42pct

By Riffat Mughal

KARACHI: Bank of Khyber (BoK) Islamic banking business net assets surged by 26.42 percent during nine months of the calendar year 2011 (9MCY11).

The net assets of the bank have reached Rs 1,717.217 million during the period as against Rs 1,358.330 million in the corresponding period last year.

Bank’s financing and receivables climbed up by 7.97 percent to Rs 3,144.305 million. In the total financing and receivables Murabaha portfolio contributed Rs 1,574.928 million, declined of 0.31 percent.

Bank’s Ijarah portfolio reduced by 58.26 percent to Rs 111.524 million in the 9MCY11. However Ijarah under IFAS-2 surged during the period by 160.91 percent to Rs 707.327 million. Out of total financing and receivables, Murabaha portfolio contributed 50.09 percent, Ijarah under IFAS-2 portfolio constituted 22.50 percent and diminishing Musharaka added 25.16 percent.

On liabilities side, total deposits and other accounts increased by 21.88 percent to Rs 9,381.153 million in 9MCY11 against Rs 7,696.829 million in the same period last year.

Among the deposit categories, current accounts increased by 208.28 percent to Rs 2,720.016 million and saving accounts jumped by 13.21 percent to Rs 4,733.940 million. However bank’s term deposits declined by 36.52 percent to Rs 1,408.375 million during the period under review. In the total deposit mix, savings account contributed 50.46 percent, current accounts 28.99 percent and term deposits 15.01 percent during the period.

Banks advances to deposits ratio declined to 33.52 percent from 37.84 percent which indicates that bank needs to increase its advances so as to make full use of capital and deposit base.

The Islamic banking industry will continue to post impressive growth. Over the past two years; BOK established 5 new Islamic banking branches, 2 Islamic banking sub sub-branches and which are fully functional and 5 will be opened by the end year 2011 making a total dedicated Islamic Banking branches to 26.

The recent economic crises have increased the general public’s trust in Islamic banking as robust institutions and believe that the future is bright for this industry.


http://www.halaltamweel.com/2418/PAKISTAN-ISLAMIC-BANKING-ISLAMIC-FINANCE-Update.aspx