Pakistan Islamic Banking windows total assets surge by 27.28pct
KARACHI: Pakistan's Islamic banking windows of conventional banks
continued to grow during the first half of the calendar year 2011
(1HCY11) with improved asset base. Total assets grew by 27.28 percent
during the first half as the Islamic banking windows total assets stood
at Rs 189.990 billion.
Islamic banking business of 10 selected banks was included in this report. The banks include Standard Chartered Saadiq, Bank AL Habib, Askari Bank Limited, Habib Bank Limited, Faysal Bank Limited, National Bank of Pakistan, Bank Alfalah Limited, Bank of Khyber, Habib Metropolitan Bank and Muslim Commercial Bank.
Net assets surged by 18.58 percent during 1HCY11 and have reached to Rs 15.242 billion during the period as against Rs 12.854 billion in the same period last year.
Banks financing and receivables climbed up by 21.29 percent to Rs 72.757 billion. In the total financing and receivables, Murabaha portfolio contributed Rs 20.276 billion with an increase of 69.62 percent. Banks Ijarah portfolio reduced by 16.49 percent to Rs 4.053 billion in the 1HCY11. Diminishing Musharakah portfolio grew by 35.24 percent to Rs 18.958 billion. Out of total financing and receivables, Murabaha portfolio constituted 27.87 percent, diminishing Musharaka portfolio contributed 26.06 percent and Ijarah portfolio had a share of 5.57 percent during 1HCY11.
On the liabilities side, total deposits and other accounts increased by 18.82 percent to Rs 143.543 billion in 1HCY11 against Rs 120.811 billion in the same period last year.
Among the deposit categories, current accounts climbed by 48.60 percent to Rs 17.083 billion, saving accounts went up by 18.66 percent to Rs 19.162 billion and term deposits jumped by 10.01 percent to Rs 23.805 billion. In the total deposit mix, term deposits contributed 16.58 percent, savings account 13.35 percent and current accounts comprised 11.90 percent during the period.
Banks advances to deposits ratio increased to 50.69 percent from 49.65 percent which indicates that banks are utilizing their deposit base effectively so as to make full use of their deposit base.
Banks capital to total assets ratio declined to 8.02 percent from 8.61 percent during the period under consideration. Since the total assets increased in more proportion than the capital, therefore, leveraging of capital base improved in Islamic banking windows operated by conventional banks.
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