Pakistan’s Islamic Banking Industry (IBI) continued its upward trend as its total assets and deposits rose 32% and 29.7% for the quarter ended June 30, 2021, the highest annual growth rate since June 2015. State Bank of Pakistan (SBP) states on Friday.

The SBP reported in its April-June 2021 Islamic Banking Bulletin that IBI assets rose Rs 408 billion during the quarter to Rs 4.797 billion at the end of June. Deposits increased by Rs. 365 billion on a quarterly basis and were recorded at Rs. 3,822 billion.

The increase in assets is due to the (net) funding of IBI, which during the period under review increased by Rs.165 billion on a quarterly basis. On the other hand, (net) investments in IBI grew by Rs. 17.6 billion. By the end of June 2021, IBI’s market share in the total assets of the banking sector was 17%. IBI’s deposits in the total assets of the banking sector amounted to 18.7%.

The report added that by the end of June 2021, net financing and investments accounted for 44.2% and 28.4% of IBI’s total (net) assets.

During the reporting period, key asset quality indicators, including non-performing (gross) financing and net financing, were recorded at 3.3% and 0.5% by the end of June 2021. The indicators were much better than the average for the total banking sector figures of 8.9% and 1.1% respectively.

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