Financial Institutions

Academic and Practioners invited to share documents

Dear Writers,

Whether you are an academic or practionner: If you wish to see your paper published on IslamicFinance.de please send us the relevant document along with a confirmation that you hold the copyrights of it and we can upload the work with your abstract provided.

As simple as that!

Best regards,

Michael Saleh Gassner

Maybank Islamic’s new Dubai branch sets out to attract Gulf investors to Southeast Asia

Maybank Islamic’s move into branch banking in the Middle East aims to attract Gulf investors to Southeast Asia. The Malaysian bank opened its first overseas branch at Dubai International Financial Centre (DIFC) in February. Maybank Islamic deputy CEO Nor Shahrizan Sulaiman said the new Dubai branch would serve as a the bank’s gateway not just to the UAE but to the wider GCC. The bank pursues further growth in Singapore and Indonesia, which it sees as home markets outside of Malaysia. The international business expansion is not new, as it has always been one of the focus areas of Maybank Islamic from early on. Maybank Islamic was granted a full Islamic banking licence from the Dubai Financial Services Authority last July, allowing it to open the DIFC branch. It replaces Maybank Islamic’s office in Bahrain, which has closed down.

Al Baraka Bank #Tunisia increases its net income by 256%

Al Baraka Bank Tunisia recently announced its financial results for the year 2019. The results revealed that the bank has moved forward with a net income that increased by 256% and total assets by 20% compared to the end of 2018. The Bank’s financial statements for the year 2019 show that the total income amounted to 133 million Tunisian dinars ($48 million), up 29% compared to the same period last year. After deducting all operating expenses, net operating income went up 54% to 30 million Tunisian dinars (US$11 million). The Bank also increased its shareholders’ equity by 9% to 174 million Tunisian Dinars (USD 62 million) at the end of December 2019.

Fitch Ratings: Coronavirus intensifies pressure on Qatari banks

The spread of the corona virus will pressure Qatari banks' asset quality and funding volatility could recur. As Fitch does not expect any changes in the Qatari authorities' ability to provide timely support all Qatari banks have a Stable outlook. The consequences of the coronavirus and lower hydrocarbon revenues will weaken government capital spending, which will in turn affect the operating environment. Fitch now forecasts Qatar's real GDP growth at minus 2% in 2020, after an estimated 0.6% positive growth in 2019. Qatari banks have adequate capital buffers but an increase in problem loans could erode these buffers quickly.

Dubai Islamic Bank shareholders approve 35 per cent dividend

Dubai Islamic Bank (DIB) announced that the Annual General Meeting has approved the bank’s 2019 financial statements and other tabled resolutions. For the year 2019, DIB reported a net profit of over Dh5.1 billion, the highest ever in its history. The shareholders also approved the dividend pay-out of 35 fils per share, increase in the foreign ownership limit in the bank’s share capital from 25% to 40% and the election of DIB Board of Directors. With the recent acquisition of Noor Bank, DIB is set to become one of the largest Islamic banks in the world, with total assets exceeding Dh275 billion ($75 billion).

Net profit of Emirates Islamic increases by 15 percent

In 2019, Emirates Islamic net income grew by 15% to stand at AED1.061 billion. Total profit rose by 8% to AED2.7 billion, and financing and investing receivables were at AED37.5 billion, climbed by 4% from end 2018. Customer deposits reached AED45.3 billion, which is a rise of 9% from end of 2018; recent and saving accounts balances show 63% of total customer deposits, as Emirates Islamic reported. Chairman Hesham Abdulla Al Qassim said the bank delivered strong results for the year, with net profit of AED1.061 billion, the highest ever in the bank's history.

Dubai Islamic Bank shareholders approve Noor Bank acquisition

Dubai Islamic Bank (DIB) received shareholder approval for the acquisition of unlisted Dubai-based Noor Bank. With the acquisition, DIB will become one of the largest Islamic banks in the world, with total assets worth 275 billion dirhams ($74.9 billion). Shareholders gave approval for the acquisition through an increase of DIB’s capital from 6.6 billion shares to 7.2 billion shares, with a share swap ratio of 1 new share in DIB for every 5.49 Noor Bank shares, translating into an issuance of about 651 million new DIB shares. The deal comes after a wave of mergers in the UAE’s banking sector on the back of tougher competition and regulation, coupled with a slowing economy and a slide in house prices.

#Qatar- Masraf Al Rayan subsidiary to establish digital bank in Astana International Financial Centre

Al Rayan Investment is working on the requirements of authorising a new bank with an expected paid-up capital of $10mn and an authorised capital of $20mn. The new bank is intended to be the first full-fledged digital bank in the Astana International Financial Centre (AIFC). Adel Mustafawi, Group CEO of Masraf Al Rayan said that Kazakhstan represents a new hub for Islamic finance in Central Asia, which offers considerable potential; while AIFC represents the optimal platform for Al Rayan. AIFC governor Dr Kairat Kelimbetov welcomes the decision of Al Rayan Investment to establish a fintech bank in AIFC. The new digital bank will focus on the development of Islamic banking products and investments facilitated by the application of cutting edge fintech products.

Family Bank in #Bahrain opens Seef headquarters

Bahrain's Family Bank has opened its new headquarters in the Diplomatic Area of Manama. The ceremony was attended by the bank’s board members, chief executives of contributing banks and economic personalities. The establishment of the Family Bank as a first social bank in Bahrain in 2010 aimed to boost the social security network by the activation of a micro loan-giving mechanism. The bank was set up through partnership between the Labour and Social Development Ministry, the Royal Charity Organisation, the Bank of Bahrain and Kuwait (BBK), Ithmaar Bank, Ahli United Bank and Kuwait Finance House (KFH). It won Shaikh Mohammed bin Rashid Al Maktoum’s award for supporting youth projects in 2013.

#Kenya: Djibouti's East African Bank Distance Self From Kenya Registered Bank

The East Africa Bank based in Djibouti has written to the Central Bank of Kenya raising concerns of a fraud using the bank's name and logo. Curiously, the logo, colours and the information on the website of the East African Savings Bank (EASB) are similar to those of the East Africa Bank based in the capital city of Djibouti. Both East Africa Bank and East Africa Savings Bank are apparently Sharia compliant. The East Africa Bank has already reported to the Central Bank of Kenya as well as the Banking fraud investigations unit for further action. The East Africa Bank believes this is a fraudulent misrepresentation and urges all customers to avoid dealing with the said entity.

Abu Dhabi Islamic Bank to cut jobs as it seeks to save $136m

Abu Dhabi Islamic Bank (ADIB) is considering cutting jobs and closing branches as part of a series of cost-cutting measures. The cutbacks come as ADIB announced a growth of 4% in net profit for 2019 to AED2.6 billion while group net revenues increased by 2.5% to AED5.9 billion. Net profit margin was 4.25%, despite lower rates in the market, helped by the positive impact of the low cost of funds. The UAE economy is coming under pressure from regional geopolitical tensions and weak domestic demand, while business conditions worsened for the first time in over a decade. ADIB joins competitors such as First Abu Dhabi Bank (FAB) and Emirates NBD in cutting jobs.

Al Baraka Bank leveraging a robust global network

In this interview Adnan Ahmed Yousif, President & Chief Executive of Al Baraka Banking Group reviews the group’s 2019 results. Overall, Al Baraka Bank maintained its healthy financial performance despite the lower-income. However, Al Baraka's adherence to its conservative approach to set aside hedging provisions for all its units resulted in a 14% decrease in net income attributable to shareholders during the third quarter. In 2019 the bank launched the Al Baraka Global API website, a step towards innovation in open banking. Al Baraka Banking Group also inaugurated a new fintech company which focuses on e-payments ‘alneo’ in Turkey through its Turkish subsidiary. The bank’s units opened six new branches, taking the total number of branches to 703. Yousif is planning to enter new markets in the coming period through the presence in the Indonesian and Chinese markets, expansion in East Asia, as well as Africa.

#Bangladesh's Islamic finance industry keeps booming with no slowdown in sight

The central bank of Bangladesh approved applications from two domestic banks, Standard Bank and NRB Global Bank, to become fully Islamic banks. The two banks so far only operated Islamic windows but sought to convert to fully-fledged Shariah-compliant banks to enlarge their scope of product offerings. NRB Global Bank said it plans to change its name to Global Islami Bank to underscore its new role. The move brings the number of fully-fledged Islamic banks in Bangladesh to ten, with the others being Al-Arafah Islami Bank, Islami Bank Bangladesh, Exim Bank, Social Islami Bank, Shahjalal Islami Bank, Union Bank, First Security Islami Bank and ICB Islamic Bank. Analysts note that the industry has still high potential for further expansion as Bangladesh enjoys a vibrant economy with GDP per capita having more than tripled over the past decade.

Al Salam Bank offers exclusive financing for Saraya Al Reem villas

Al Salam Bank-Bahrain signed a memorandum of understanding with Al Saraya Properties Company to offer an exclusive financing facility for customers purchasing villas in the new Saraya Al Reem 3 development. The bank's property finance scheme is available to all customers, including Bahraini nationals eligible for Mazaya social housing.

Maybank Islamic establishes regional footprint with Dubai branch

Maybank Islamic has officially opened its first overseas branch in Dubai International Financial Centre (DIFC). It offers wholesale banking services and facilities, with emphasis in corporate financing, treasury, and capital market and trade finance. According to Maybank Islamic’s CEO Datuk Mohamad Rafique Marican, the DIFC branch was a significant milestone for Maybank Islamic, as it not only marks its first overseas branch but also Malaysia’s first Islamic bank to have a presence outside local shores. The regional office is headed by its country manager Nik Joharris Nik Ahmad, who has over 20 years experience having worked in Kuwait, Bahrain and Saudi Arabia. Maybank Islamic offers a range of Islamic financial products and services across 354 Maybank touch points in Malaysia, as well as international operations in Indonesia, Singapore, Hong Kong, London, Labuan, and Dubai.

Jaiz Bank gets investment grade rating from IIRA

Nigeria’s Jaiz Bank has been assigned positive rating by the Islamic International Rating Agency (IIRA). This is the first rating for the bank as the first Sharia compliant bank in the country. The Bank gets an investment grade rating of BBB (Triple B) for the medium to long-term and A2 in the short-term (A Two) on the national scale. The IIRA also assigned it a foreign currency rating of B-/B (Single B Minus/B) and local currency rating of B/B (Single B/B) on the international scale with a ‘Stable’ outlook. The agency affirmed that when compared, Jaiz Bank fares well in terms of risk exposure with its gross non-performance falling below 10%.

DIB set to cut jobs following merger with Noor Bank

Dubai Islamic Bank (DIB) is planning more than 500 dismissals at newly acquired Noor Bank as part of cost cuts across both lenders. DIB, the largest Shari’ah compliant lender in the UAE, has more than 9,000 employees, while Noor Bank has between 1,200 and 1,400 full-time staff. DIB completed its acquisition of Shari’ah-compliant Noor Bank in January 2020 in a deal that will make DIB one of the world's largest Islamic banks, with total assets worth AED 275 billion ($75 billion). Job cuts will be on both sides but DIB is the buying side so job losses are expected to be more on Noor side.

Islamic Bank hires new CIO

Birmingham-based Al Rayan Bank has appointed Simon Nash as the new chief information officer.
Simon Nash has 30 years’ experience in the financial services sector with multinational businesses including RBS, Credit Suisse and Deutsche Bank. He will lead information technology innovation as well the development and augmentation of information policies and processes. He will be responsible for a team of almost 50 colleagues and will oversee further technology projects scheduled for this year, including the ongoing development of the recently launched mobile banking app.

ADIB plans to end several banking services in the #UK

Abu Dhabi Islamic Bank (ADIB) has announced plans to streamline its UK operations in a bid to end several banking services and to focus on commercial real estate financing. The bank will refrain from providing regulated services to customers, which includes account services, savings, deposits and safe deposit boxes. The bank said that the decision follows a rigorous evaluation process that took into consideration the high demand for commercial real estate financing in the UK. The bank has built a strong full-service property financing solution to support clients’ investment strategies in commercial real estate in compliance with Islamic Shari’ah principles.

#Kuwait's KFH plans to drop assets of about 100 million dinars this year - CEO

Kuwait Finance House (KFH) plans to shed assets worth about 100 million dinars ($329.5 million) in 2020 as it finalises the acquisition of Bahrain’s Ahli United Bank. KFH has sold assets worth 137 million dinars in 2019 and achieved a profit of 40.1 million dinars. Kuwait's largest Islamic bank registered a net profit of 60.5 million dinars in the fourth quarter last year, up from 58.3 million one year earlier. After the acquisition of Ahli United Bank, the new entity will have assets of $101 billion and shareholder equity of $10.5 billion, with an annual forecast profit of $1.5 billion. This merger will be the Gulf’s first major cross-border bank merger in recent years.

Syndicate content