Profitability and earnings jump in 2023, with Islamic banks gaining the benefit of digital investment and service improvement.
Last year was a strong year for Islamic financial institutions [IFIs], with banks and their management capitalizing on investment in technology and digital capabilities to boost growth and gain customers. Progress in digital banking has helped to keep costs under control. It has led to increased customer drift from conventional banks to Shariah-compliant institutions, particularly among the younger generation. Retail banking remains a cornerstone of most IFIs, but many are strengthening their commercial banking products.
Despite rising interest rates over the past few years, which has in the past been challenging for Islamic banks, most IFIs were able to widen their margins in 2023 through better repricing of financing assets. The Islamic banking…
