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Best Islamic Financial Institutions 2023

The performance of Islamic financial institutions (IFIs) continued to strengthen in 2022 despite challenging conditions in most markets as economies weakened, supply chains got squeezed and interest rates rose. Most Islamic banks benefited from their focused strategies on domestic markets, mainly retail and commercial banking.

Profitability rose for IFIs in 2022, with net profit increasing by 26% thanks to strong asset and loan growth. Islamic bank assets grew by 13% last year, again outpacing conventional banks. As a result, net financing (interest) income for Islamic banks accelerated, and margins widened. Impairment charges were also lower as banks maintained good financing asset quality. Islamic banks continued to experience growth in mortgage financing, particularly in the fast-growing market of Saudi Arabia.

Link: https://www.gfmag.com/magazine/may-2023/best-islamic-financial-institutions-2023

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