Islamic banking assets record 368pc rise in 3 years

KARACHI: Total assets of Islamic banking have recorded an unprecedented climb of 368 percent to Rs 147 billion in the last three years, rising from Rs 44 billion in December 2004.

According to a report here Wednesday, total deposits have also grown by 390 percent to Rs 147 in December 2007, compared to Rs 30 billion in 2004.

Similarly, Islamic banking financing and investment have surged by 360 percent, climbing from Rs 30 billion in December 2004 to Rs 138 billion in December 2007. On year to year basis, deposits grew by 93 percent to Rs 105 billion at the end of December 31, 2007, rising from Rs 54.4 billion December 2006. The market share of Islamic banking assets in the overall banking system has increased to 4.3 % at the end of December 31, 2007, against 2.9 % in December 2006. The total deposits of the banking sector at the end of Dec 2007 stood at Rs 3.5 trillion, in which the share of Islamic Banks has grew to 4.1% (Rs 147 billion) in December 2007 from 2.9% (Rs 83 billion) in December 2006.

The growth in Islamic banks deposits was much higher than Islamic banking divisions (IBDs) of conventional banks. Islamic Banks' deposits grew by 93 % in FY 2007 as compared to 44 % growth in IBDs.

Islamic Banking Highlights (Rs b)

Indicators Dec'07 Dec'06 Dec'05 Dec'04

Assets 206 118 72 44

Deposits 147 83 50 30

Financing,

investment 138 72 48 30