ISLAMABAD - Net investments of Islamic banking industry recorded an increase of 1.8 percent (Rs9 billion) during the quarter from October to December, 2017 and were recorded at Rs. 534 billion by end December, 2017 compared to Rs. 525 billion in the previous quarter.
Break up of investments (net) among full-fledged Islamic banks and Islamic banking branches of conventional banks shows that investments of full-fledged Islamic banks increased to Rs 231 billion by end December, 2017 compared to Rs 220 billion in the previous quarter, according to latest data released by State Bank of Pakistan (SBP).
However, investments of Islamic banking branches of conventional banks witnessed a decline of Rs 2 billion and were recorded at Rs 303 billion by end December, 2017 compared to Rs 305 billion in the previous quarter.
Financing and related assets (net) of Islamic banking industry reflected double-digit growth of 16.6 percent (Rs.172 billion) during the review quarter and were recorded at Rs1,207 billion by end December, 2017 compared to Rs 1,035 in the previous quarter.
Breakup of financing and related assets among full-fledged Islamic banks and Islamic banking branches of conventional banks reveals that financing and related assets of full-fledged Islamic banks increased by13.1percent (Rs.88 billion) during the review quarter and stood at Rs. 761 billion by end December, 2017.
Similarly, financing and related assets (net) of Islamic banking branches of conventional banks observed a quarterly growth of 23.1 percent (Rs. 84 billion) and recorded at Rs. 445 billion by end December, 2017.
In terms of financing mix, Diminishing Musharaka remained the leading mode of financing followed by Musharaka and Murabaha In line with the overall banking industry's trend, major portion of financing of Islamic banking industry was extended to production and transmission of energy and textile sectors and their share in overall financing of Islamic banking industry stood at 16.4 percent and 13 percent, respectively by end December, 2017.
Review of client wise financing depicts concentration of financing in the corporate sector; its share in overall financing of Islamic banking industry stood at 70.6 percent by end December, 2017.
During the period under review, the share of commodity financing increased to 13.9 percent compared to 5.6 percent in the same quarter last year. Like previous quarters, the share of small and medium enterprises (SMEs) financing and agriculture financing in overall financing of Islamic banking industry remained low compared to overall banking industry's averages.