BANKS SHOWING RESILIENCE

S.KAMAL HAYDER KAZMI,
(feedback@pgeconomist.com)
Research Analyst
, PAGE
Jan 23 - 29, 2012

PAKISTAN: ISLAMIC BANKING INDUSTRY

INDICATORS ISLAMIC BANKING INDUSTRY PROGRESS GROWTH (YOY) (%) SHARE IN OVERALL BANKING INDUSTRY (%)
JUN-10 MAR-11 JUN-11 JUN-10 MAR-11 JUN-11 JUN-10 MAR-11 JUN-11
Total Assets 411 497 560 31.3 33.9 36.3 6.1 6.9 7.3
Deposits 330 398 452 38.5 37.7 37.1 6.4 7.3 7.6
Net Financing & Investment 236 374 420 21.5 63.5 78.3 4.6 6.7 7.0
Total Islamic Banking Institutions 19 17 17 _ _ _ _ _ _
Total No. of Branches 667 759 799 _ _ _ 6.9 7.9 8.3

PROVINCE WISE ADDITIONAL BRANCHES OF ISLAMIC BANKING (June 2011)

PROVINCE ADDITIONAL NO. TOTAL NO. SHARE (PERCENT)
Punjab 16 356 45
Sindh 11 268 34
Khyber Pakhtoonkwa 7 83 10
Balochistan 1 37 5
Gilgit Baltistan Nil 1 0
FATA 1 1 0
Federal Capital 4 43 5
AJK Nil 10 1
G. Total 40 799 100

INTEREST RATES IN PAKISTAN

DATE RATES (%)
30-Jan-10 12.5
27-Mar-10 12.5
24-May-10 12.5
2-Aug-10 13.00
30-Sep-10 13.5
30-Nov-10 14.00
1-Aug-11 13.5
9-Oct-11 to date 12.00

NON-PERFORMING LOANS (Rs in million)

BANKS/ DFIs AS ON 30.06.2011 AS ON 30.09.2011
NPLs NET NPLs NET NPLs TO NET LOAN (%) NPLs NET NPLs NET NPLs TO NET LOAN (%)
All Banks & DFIs 591,226 188,113 5.48 629,555 215,977 6.53
All Banks 575,848 182,622 5.40 613,219 209,632 6.42
All Commercial Banks 542,176 169,875 5.16 577,778 196,020 6.18
Public Sector Banks 166,915 77,067 11.21 193,214 102,044 15.10
Local Private Banks 368,561 92,054 3.63 377,334 93,154 3.83
Foreign Banks 6,701 754 1.10 7,230 822 1.26
Specialized Banks 33,671 12,748 13.74 35,441 13,612 14.68
DFIs 15,378 5,491 11.59 16,336 6,344 13.49
Note: (Domestic and Overseas Operations)

KIBOR RATE (RS) (AS ON 16.JAN.2011)

TENOR BID OFFER
1 - Week 11.12 11.62
2 - Week 11.31 11.81
1 - Month 11.48 11.98
3 - Month 11.62 11.87
6 - Month 11.67 11.92
9 - Month 11.72 12.22
1 - Year 11.76 12.26
2 - Year 11.82 12.32
3- Year 11.89 12.39

CATEGORIES OF BANKS IN PAKISTAN

CATEGORIES NUMBER
Public sector banks 5
Specialized banks 4
Private banks 17
Islamic banks 5
Foreign banks 7
Micro finance banks / institutions 8
Development finance institutions 8

TOTAL DEPOSITS OF SCHEDULED BANKS (STOCKS) (Rs in million)

MONTH 2004 2005 2006 2007 2008 2009 2010 2011
January 1,808,264 2,174,060 2,588,582 2,975,457 3,574,788 3,852,605 4,400,569 5,024,480
February 1,848,798 2,227,063 2,630,445 3,034,321 3,591,861 3,897,208 4,395,650 5,050,823
March 1,872,492 2,268,001 2,650,429 3,151,944 3,628,142 3,874,550 4,424,190 5,046,487
April 1,912,244 2,309,546 2,695,939 3,177,075 3,650,050 3,874,318 4,558,556 5,135,787
May 1,961,001 2,338,583 2,733,969 3,226,117 3,696,208 4,039,870 4,574,088 5,220,669
June 2,006,675 2,377,458 2,786,731 3,460,811 3,832,454 4,120,087 4,661,241 5,599,098
July 2,070,264 2,424,130 2,813,325 3,383,373 3,777,585 4,136,735 4,656,573 5,344,077
August 2,074,487 2,425,752 2,806,645 3,403,170 3,788,611 4,115,251 4,605,232 5,364,701
September 2,078,425 2,408,424 2,816,450 3,464,687 3,781,524 4,161,958 4,670,730 5,418,431
October 2,078,917 2,418,434 2,823,123 3,451,075 3,681,110 4,193,810 4,733,025 5,390,395
November 2,105,430 2,483,395 2,891,250 3,478,385 3,756,126 4,207,191 4,791,949 5,415,583
December 2,161,098 2,661,697 2,999,895 3,565,537 3,801,411 4,325,139 5,124,308 -

TOTAL ADVANCES OF SCHEDULED BANKS (STOCKS) (Rs in million)

MONTH 2008 2009 2010 2011
January 2,684,089 3,127,435 3,291,239 3,486,305
February 2,734,642 3,099,980 3,291,313 3,507,724
March 2,812,732 3,061,965 3,257,292 3,473,894
April 2,870,619 3,053,171 3,298,126 3,437,152
May 2,964,509 3,174,151 3,346,472 3,450,662
June 2,943,319 3,168,566 3,308,694 3,504,663
July 2,848,844 3,147,848 3,316,015 3,417,875
August 2,899,138 3,147,207 3,313,710 3,411,810
September 3,027,122 3,154,737 3,270,304 3,415,131
October 3,092,451 3,196,228 3,338,339 3,443,067
November 3,131,312 3,253,693 3,373,427 3,356,983
December 3,141,028 3,271,977 3,494,228 -

INTEREST RATE SPREAD (%)

YEARS AVERAGE YIELD ON EARNING ASSETS AVERAGE COST OF INTEREST LIABILITIES SPREAD
(A) (B) (A-B)
CY98 14.0 8.5 5.4
CY99 12.7 7.7 5.0
CY00 11.3 6.6 4.7
CY01 11.2 6.1 5.1
CY02 8.7 4.3 4.5
CY03 5.7 2.0 3.8
CY04 5.0 1.5 3.5
CY05 7.5 2.6 5.0
CY06 9.1 3.9 5.2

WORLD INTEREST RATES

COUNTRY CURRENT RATE PREVIOUS RATE CHANGE LAST CHANGE
Australia 4.25% 4.50% -0.25% Dec 06 2011
Canada 1% 0.70% 0.30% Sep 08 2010
China 6.56% 6.30% 0.26% Jul 06 2011
Denmark 0.75% 1% -0.25% Jan 15 2010
Egypt 8.25% 8.50% -0.25% Sep 22 2009
European Monetary Union 1% 1.25% -0.25% Dec 08 2011
Hong Kong SAR 0.50% 1% -0.50% Dec 17 2008
India 8.50% 8.20% 0.30% Oct 25 2011
Indonesia 6.75% 6.50% 0.25% Feb 04 2011
Israel 2.75% 3% -0.25% Dec 01 2011
Japan 0.10% 0% 0.10% Dec 19 2008
Mexico 4.50% 4.75% -0.25% Jul 17 2010
Turkey 5.75% 6.20% -0.45% Aug 05 2011
United Kingdom 0.50% 1% -0.50% Mar 05 2009
United States 0.25% 1% -0.75% Dec 16 2008