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Islamic banks saw steady growth in deposits, investments and assets in December 2025, though external trade transactions and CSR spending showed mixed trends.
According to the latest data from Bangladesh Bank (BB), deposits mobilised by the Islamic banking system rose to Tk 4.76 trillion in December 2025 from Tk 4.36 trillion in December 2024, registering a year-on-year growth of 9.34 per cent.
Despite the increase in absolute terms, Islamic banks' share in total banking sector deposits edged down slightly to 22.39 per cent in December 2025 from 22.89 per cent a year earlier.
Investment activities of Islamic banks witnessed notable growth during the period under review. Total investments increased to Tk 5.85 trillion in December 2025 from Tk 5.26 trillion in December 2024, reflecting an 11.11 per cent rise.
The expansion indicates sustained demand for Shariah-based financing and continued operational resilience of the segment amid broader macroeconomic adjustments.
Islamic banks also strengthened their balance sheets, with total assets climbing to Tk 9.59 trillion in December 2025 from Tk 8.43 trillion in December 2024, marking a robust 13.67 per cent growth.
The rise in assets underscores consolidation efforts and scaling up of operations across the Islamic banking network.
However, the trend in foreign trade transactions was less encouraging on a year-on-year basis. Export proceeds received by Islamic banks declined to $653 million in December 2025 from $774 million in December 2024, reflecting a 15.55 per cent decrease in point-to-point comparison. Although receipts remained relatively stable over the broader period, the December figures show contraction compared to the same month of the previous year.
Import payments through Islamic banks also fell significantly. Payments dropped to $0.97 billion in December 2025 from $1.21 billion in December 2024, registering a 19.50 per cent decline.
In December 2025, Islamic banks accounted for 17.12 per cent of the country's total import payments, indicating a moderate share in external trade settlement.
In contrast, remittance inflows through Islamic banks recorded strong growth. Remittances increased to $779 million in December 2025 from $533 million in December 2024, marking substantial year-on-year growth.
Consequently, Islamic banks' share in total remittance inflows rose to around 24.17 per cent in December 2025 from 20.21 per cent a year earlier. The increase suggests improved confidence among expatriate Bangladeshis in routing funds through Islamic banking channels.
Islamic banks continued to hold a dominant position in agent banking deposits. In December 2025, they accounted for 54.02 per cent of total deposits in the agent banking segment.
Deposits mobilised through agent banking rose to Tk 267 billion in December 2025 from Tk 216 billion a year earlier, recording a 23.26 per cent growth, reflecting deeper financial inclusion outreach.
Meanwhile, CSR expenditure by Islamic banking institutions declined sharply. Total CSR spending stood at Tk 802 million in December 2025, down by 58.67 per cent compared to December 2024.
The sharp reduction was largely driven by full-fledged Islamic banks, whose CSR outlays fell by 65.56 per cent. The decline may be attributed to lower profitability, higher provisioning against non-performing investments, liquidity pressures and a cautious financial strategy prioritising capital strength and core banking operations.
Overall, the latest central bank data indicate that Islamic banks maintained strong growth in core financial indicators in 2025, supported by rising deposits, investments, assets and remittance inflows, even as trade transactions and CSR commitments faced notable adjustments.
Economists say the latest data reflect a structurally resilient Islamic banking segment, underpinned by steady deposit mobilisation, double-digit asset growth and rising remittance inflows.
They note that the 11.11 per cent growth in investments and 13.67 per cent expansion in assets indicate that Islamic banks are consolidating their balance sheets and maintaining credit flow despite macroeconomic tightening.
However, the decline in export proceeds and import payments suggests softer trade activity and cautious business sentiment, while the sharp fall in CSR spending signals pressure on profitability and liquidity management.
Dr Masrur Reaz, Chairman of Policy Exchange Bangladesh, said the central bank data show that Islamic banks have strengthened their core fundamentals but must focus on asset quality and governance to sustain growth.
The strong increase in remittance inflows and agent banking deposits reflects rising public confidence, he noted.
However, the contraction in trade transactions and CSR expenditure indicates that banks are prioritising balance sheet stability amid economic uncertainty, Dr Reaz said.
Going forward, improving risk management and enhancing transparency will be crucial for maintaining long-term stability and competitiveness, he added.
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