Distribution of Profits in Islamic Banking: A Case Study of Faysal Islamic Bank of Sudan (FIBS)

The focus of this study is distribution of profits in Islamic banking, taking Faysal Islamic Bank of Sudan as a case study. The problem arises due to Islamic banks' commitment to share the actual profits resulting from investing depositors' money, with them. After describing the nature of deposits and the terms and condition of mudaraba, the author examine FIBS figures for two consecutive years to show how part of the profits accruing on the investment of current deposits, which actually belong to the shareholders, were diverted to boost the profit share of depositors into investment accounts.