Improving Banking Supervisory Mechanisms
In the OIC Member Countries
105
Figure 85: Profitability of the Banking Sector, Pakistan
Source: Bankscope
Figure 86: Loan Decomposition, Pakistan
Source: Bankscope
o Nigeria
The banking sector in Nigeria exhibit a similar pattern to OIC countries in terms of asset
composition as most of assets are in the form of loans which is followed by securities. Risk-
weights are not available from Bankscope, however we infer a higher weight of credit risk
given the high fraction of loans. Securities are again in mostly “available for sale” form and
most of the liabilities are customer deposit, hence not deviating from the general pattern in
selected OIC countries.
Bank profit mostly originates from interest income. Loans are extended to the corporate sector
at a higher proportion compared to retail loans hence banks are mainly financing real sector
rather than consumer expenditures.
Net Interest
Income
69%
Net Gains on
Trad. and Der.
4%
Non-Interest
Operating
Income
27%
Profitability of the Banking Sector
Other
Consumer
Retail Loans
86%
Other Loans
14%
Loan Decompositon