MCB Islamic banking business reports decline in earnings

The Islamic banking business of Muslim Commercial Bank (MCB) witnessed modest performance in its recently announced financial results for the half year ended June 30, 2011.

The profit before taxation of MCB Islamic banking business remained under pressure during the first six months of the financial year as it declined to Rs 114.75 million from Rs 126.82 million recorded in the same period last year.

Immense growth in branch network of Islamic banking windows by conventional banks was witnessed in last three years. This was due to acceptance by local customers to fulfill their financial needs in Shariah compliant manner.

The administrative expenses of its Islamic banking operation doubled up to Rs 144.21 million which was the major reason of its profit erosion along with higher provision. The expenses increased due to expansion in branch network.

From: Halal Tamweel