Samba Bank Limited, a subsidiary of the Saudi National Bank of the Kingdom of Saudi Arabia, has announced plans to convert from a conventional to an Islamic bank.
The bank disclosed the development in its notice to the Pakistan Stock Exchange (PSX) on Thursday.
“The board of Samba Bank Limited has, in-principle, approved the plan to convert from conventional to Islamic bank,” read the notice.
In this regard, the bank further informed that the tentative plan of conversion from conventional to Islamic bank will be submitted to the State Bank of Pakistan (SBP).
The development comes as Islamic banking in Pakistan has seen significant growth over the past two decades, driven by strong demand, regulatory support, and Shariah-compliant financial solutions. The industry has expanded rapidly, with both full-fledged Islamic banks and conventional banks offering Islamic banking windows to cater to a growing customer base.
As per SBP’s latest data, assets of the Islamic banking industry rose by Rs192 billion from the quarter ending June 2024 and reached Rs9,881 billion by the end of September 2024. Likewise, deposits maintained an upward trajectory and increased by Rs233 billion during the period to reach Rs7,596 billion.
In a separate notice, Samba shared its 2024 financial results, under which the bank posted a profit after tax of Rs699.33 million during the period, as compared to Rs1.24 billion in 2023, a decline of over 43%.
Last month, Bank of Khyber also formally initiated its transition into a full-fledged Islamic bank.
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