Pakistan Islamic banks’ pre-tax profit jumps 25%

Profits of Islamic banks increased by 25% during first six months of calendar year 2018, according to the State Bank’s Islamic Banking Bulletin June 2018 issued yesterday.Profit before tax of Islamic banks stood at Rs15bn by June, 2018 compared to Rs12bn in the same quarter last year. Profitability ratios; return on assets and return on equity-before tax-were recorded at 1.3% and 20.9%, respectively.“During the period under review, operating expense to gross income ratio declined by 3% and stood at 64.5% by end June, 2018,” said the SBP report.Share of Islamic banking assets and deposits in the overall industry was recorded at 12.9% and 14.8%, according to the bulletin.Deposits at the Islamic banks grew by 6.1% – Rs117bn – reaching Rs2.033tn against Rs1.916tn in the previous quarter. During the period under review, market share of Islamic banking industry’s deposits in overall banking industry increased to 14.8% compared to 14.6% in the previous quarter.Net investments of Islamic banks reflected an increase of 4.8% – Rs26bn – and were recorded at Rs555bn by end June, 2018 compared to Rs529bn in the previous quarter.Breakup of net-investments among full-fledged Islamic banks and Islamic banking branches of conventional banks reveals investments reaching Rs244bn and Rs311bn respectively by end June, 2018.Financing and related net assets of Islamic banking industry registered a quarterly growth of 3.1% – Rs39bn – rising to Rs1.323tn by end June, 2018.Breaking up the total financing and related assets, the report reveals that financing and related assets of Islamic branches of conventional banks increased by 7% – Rs35bn – to Rs541bn by end June, 2018.