The Islamic banking industry (IBI) has vacated behind the traditional banking enterprise by broad margins, indicating a handsome pre-tax earnings development of 87.5 percent in the duration of January to September 2022 as described in relation to the same duration of the last year.
According to the Islamic Banking Bulletin (IBB) discharged by the State Bank of Pakistan (SBP), the IBI documented a pre-tax profit of Rs. 124.5 billion in nine months of 2022 as described in relation to an earnings of Rs. 66.4 billion documented in the related period of 2021, indicating an accumulation of 87.5 percent year-on-year.
The IBI includes 22 Islamic Banking Institutions (IBIs), consisting of 5 full-fledged Islamic Banks (IBs) and 17 traditional banks having Islamic Banking Branches (IBBs).
On the other hand, the pre-tax earnings of traditional banking recorded 38 percent year-on-year growth by the end of three quarters of 2022. The pre-tax profit of the conventional banking system stood at Rs. 362.5 billion in the said period as described in relation to Rs. 261.4 billion documented in an identical time.
Across-the-board, Pakistan’s banking industry comprising conventional and Islamic banking strategies documented 48.5 percent pre-tax earnings development in the duration under examination. The pre-tax profit of the banking system stood at Rs. 487 billion from January to September 2022 as described in relation to Rs. 327.8 billion in a comparable duration of the last year.
