Standard Chartered Islamic Banking Business net assets up by 63.16pct
By Riffat Mughal
KARACHI: Standard Chartered Bank (SCB) Islamic banking business net
assets surged by outstanding 63.16 percent during nine months of the
calendar year 2011 (9MCY11). The net assets of the bank have reached Rs
2,800.690 million as on September 30, 2011 as against Rs 1,716.558
million as on December 31, 2011.
Bank’s financing and receivables went up by 47.41 percent to Rs 13,766.007 million. In the total financing and receivables, Murabaha portfolio contributed Rs 3,300.083 million, showing an increase of 87.70 percent. Diminishing Musharaka portfolio surged by 35.87 percent to Rs 10,261.761 million during the 9MCY11. Out of total financing and receivables, Diminishing Musharaka portfolio constituted 74.54 percent and Murabaha contributed 23.97 percent.
Diminishing Musharakah is a financing instrument used for long term financing. Increase in its share confirms that bank’s advances to deposit ratio would sustain the current levels achieved. More exposure to long financing asset could create problems of liquidity, but in Islamic banking sector, liquidity is usually in more supply.
On liabilities side, total deposits and other accounts increased by 34.15 percent to Rs 15,376.496 million as on September 30, 2011 against Rs 11,462.259 million reported on December 31, 2011.
Among the deposit categories, current accounts went up by 50.66 percent to Rs 8,108.241 million and saving accounts jumped by 65.23 percent to Rs 3,671.823 million. In the total deposit mix, term deposits contributed 22.81 percent, savings account 23.88 percent and current accounts 52.73 percent during the period.
Banks advances to deposits ratio climbed up to 89.53 percent from 81.47 percent which indicates that bank is utilizing its advances efficiently so as to make full use of capital and deposit base. This is by far the best above average advances to deposit ratio among either the Islamic banks or conventional banks having Islamic banking branches.
Standard Chartered has 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 and continues to grow rapidly as people welcome the solutions based on Shariah principles. With over 1.5 billion Muslims in the world, the global Islamic funds market is currently valued at USD 750 billion and is expected to grow exponentially every year. The bank is operating 15 Islamic Banking branches in Pakistan currently.
Comments
Post a Comment