Standard Chartered Saadiq net assets climb up by 21.80 pct

By: Riffat Mughal

KARACHI: Standard Chartered Bank (SCB) reported financial position (unaudited) of its Islamic banking business recently for first half of the calendar year 2011. 

Standard Chartered Bank (SCB) Islamic windows net assets surged by 21.80 percent during first half of the calendar year 2011 (1HCY11) as it reached to Rs 2.090 billion as compared to net assets of Rs 1.716 billion in December, 2010.

SCB Islamic banking business financing and receivables climbed by 53.60 percent to Rs 14.344 billion. Bank's Murabaha financing portfolio jumped by 84.84 percent to Rs 3.249 billion as against Rs 1.758 billion in December, 2010.

The major change observed in Musharakah which increased to Rs 0.400 billion while bank's diminishing Musharaka surged by 40.71 percent to Rs 10.627 billion in 1HCY11. Others financing and receivables jumped by 138.73 percent to Rs 0.067 billion during the period under review.

Bank's Islamic banking business reserves went up by 27.22 percent to Rs 1.929 billion while its deficit on revaluation of net assets reached Rs 0.038 billion.

Operating fixed assets declined by 4.53 percent to Rs 0.201 billion and other assets surged remarkably by 848.44 percent to Rs 5.526 billion during the period under consideration.

On liabilities side, total deposits and other accounts increased by 23.28 percent to Rs 14.130 billion in 1HCY11 against Rs 11.462 billion reported in December, 2011.

Major contribution in deposits and other accounts came from saving deposits which inclined by 53.96 percent and touched Rs 3.421 billion during the period. Bank's Islamic banking business current accounts also increased by 30.64 percent to Rs 7.030 billion and term deposits went by 4.65 percent to Rs 3.600 billion.

Furthermore, SCB Islamic banking business others deposits and other accounts declined by 81.28 percent to Rs 0.078 billion.

Its dues to Financial Institutions (IFs) gained 95.65 percent and reached Rs 1.575 billion. However, other liabilities increased by 1,472.68 percent to Rs 6.995 billion during the period. 

Standard Chartered have been providing Islamic Banking products and services in Malaysia since 1993 and in the UAE, Pakistan and Bangladesh since 2003. Standard Chartered Saadiq is the Islamic banking business continues to grow rapidly as people welcome the solutions we structure based on Shariah principles.  

With over 1.5 billion Muslims in the world, the global Islamic funds market is currently valued at USD750 billion and is expected to grow exponentially every year.

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