Highest YoY Growth in Assets and Deposits Since 2015 Achieved by Pakistan’s Islamic Banking Industry

In its latest bulletin for the April to June 2021 quarter, the State Bank of Pakistan (SBP) reported that the assets and deposits of the Islamic Banking industry (IBI) had increased by 32% year-on-year (YoY) and 29.7% (YoY), respectively in the second quarter of 2021(2Q 2021).

Why it Matters?

As a result, the IBI reached the highest YoY growth since 2015 and was also able to increase its asset and deposit market share in the overall banking industry to 17% and 18.7%, respectively. This was in comparison to market shares of 15.3% and 16.9%, respectively in the second quarter of 2020. The growth in assets and deposits during 2Q 2021 by PKR 408 billion and PKR 365 billion, respectively was attributed to the rise in financing and investments in total assets...