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Abu Dhabi Islamic Bank dismissed reports that it may merge with Al-Hilal Bank as consolidation takes hold in the emirate’s financial-services industry. Abu Dhabi is combining National Bank of Abu Dhabi and First Gulf Bank and two sovereign wealth funds as it seeks to cut costs and merge firms with overlapping assets. The next step could be a tie-up between ADIB with Al-Hilal and a combination of Abu Dhabi Commercial Bank and Union National Bank. Tirad Mahmoud said ADIB plans to stick to its core markets and strengthen its presence. He also said that mergers were a shareholder issue and there might be 'some pressure' on net interest margins this year. ADIB posted a 1% rise in 2016 net profit to Dh1.95 billion ($530 million) on Tuesday as provisions rose to Dh970 million from Dh820 million.

During the Arab-Africa Trade Bridges forum held in Rabat, bank president Bandar Al-Hajjar spoke about the strategic ties between Morocco and the Islamic Development Bank (IDB). Al-Hajjar noted that Morocco has received a total of USD 7.6 billion from the IDB since its establishment in 1974 and currently the bank is carrying out a number of projects estimated at USD 1.2 billion. Al-Hajjar also praised Morocco’s efforts towards renewable energy, saying that there is a bilateral cooperation between the IDB and Morocco to share Moroccan experiments in this field with Sub-Saharan countries. The IDB has supplied Morocco with several loans over the past few years. In 2014, the IDB amounted to MAD 1.8 billion to Morocco in order to carry out drinking water supply projects, as well as the olive sector for small farmers. The IDB has also embarked on signing agreement with partners to invest in Morocco. In 2014, it signed a joint agreement with Kuwait Investment Authority (KIA) to invest in the Moroccan private sector.

Qatar International Islamic Bank approves capital increase of a newly established morocco-based Umnia Bank to 600 million moroccan dirhams.

Turkish participation bank Kuveyt Turk has received regulatory approval to raise 2 billion lira ($555.8 million) via sukuk, as it expands its domestic footprint while winding-down its Dubai unit. Kuveyt Turk, 62% owned by Kuwait Finance House , would sell the lira-denominated sukuk to qualified investors through its asset-leasing company, KT Kira Sertifikalari Varlik Kiralama, according to a regulatory filing. No timeframe or tenor were given for a potential deal. New funding could help the bank's plans to expand its branch network to 400 offices this year from a current 385. The bank increased its net profit by 22% and total assets by 15% in 2016. In December, however, the bank said it would terminate all activities of its wholly-owned subsidiary in Dubai, as it had not established a commercial advantage. It will continue to service the Gulf region via its branch in Bahrain, while concentrating on its operations in Turkey and Germany.

Sheikh Dr Khalid bin Thani bin Abdullah Al Thani, Chairman of Qatar International Islamic Bank (QIIB) inaugurated the bank’s new branch at the Mall of Qatar. CEO Abdulbasit Ahmad Al Shaibei said the bank is expected to start its operations in Morocco by the first quarter of 2017 with four branches. The lender had signed a joint venture agreement with the Moroccan Bank Credit Immobilier et Hotelier (CIH) for the establishment of a bank in Morocco in December 2015. Under the agreement, QIIB will have 40% stake in the proposed bank. The new QIIB branch is on the ground floor of the Mall of Qatar, considered to be one of the most important shopping destinations in the region.

Despite the global drop in oil prices, Islamic finance continues to thrive. According to the EY consultancy, Sharia-compliant banking grew at an annual rate of 17.6% between 2009 and 2013, and is now projected to grow by an estimated 19.7% annually by 2018. This rate of growth far outpaces that of conventional banks, putting pressure on traditional banks to diversify their operations by including Sharia-compliant services. Kuwait International Bank (KIB) converted to exclusively Sharia-compliant services in 2007 and paved the way for Islamic finance in Kuwait. Sheikh Mohammed Al-Jarrah Al-Sabah, Chairman of KIB, said the bank has adopted a new strategic outlook which had its first stage launched in 2015. This brought about a change in KIB’s franchise operations and its day-to-day activities. The second phase develops the bank's product and service offerings. The final stage scheduled for 2017 will focus on boosting KIB’s competitive edge within the banking industry.

According to Moody’s Investors Service, a proposed merger between three Qatari banks would help “rebalance” the banking sector in the country. The merger is currently at due diligence stage and will be subject to approval by the relevant authorities. The merged entity between Masraf Al Rayan, Barwa Bank and International Bank of Qatar would create the largest Islamic bank and second largest lender in Qatar. Total assets would amount to around QAR173bn ($48bn) and the market share would be around 14%. Moody’s assistant vice president Nitish Bhojnagarwala said Islamic banking asset growth has outpaced conventional banking in Qatar, as demonstrated by a 21% compound annual growth rate of loans for Islamic banks between 2011 and 2016 compared with 14% for the conventional banks. The GCC is witnessing a consolidation in the banking sector, with the two largest lenders in Abu Dhabi also currently preparing to merge.

Governor of the Central Bank of Iran (CBI) Valiollah Seif said the country plans to establish a bank in Azerbaijan with 100% Iranian ownership. The plan involves turning a branch of Bank Melli Iran in Azerbaijan into an independent Azerbaijani bank. Seif added that all the shares of the new bank will be owned by Bank Melli Iran and that the details would be discussed next week during the visit of the Azerbaijani delegation to Tehran. Seif emphasized that certain plans were on agenda for Iran and Azerbaijan to use their national currencies in mutual transactions. Currently 32 banks operate in Azerbaijan and 36 banks operate in Iran.

Jaiz Bank added N36 billion to the total market capitalisation of the Nigerian Stock Exchange (NSE). The bank announced the official listing of its ordinary shares of N29.4 billion of 50kobo each at N1.25. The chairman of Jaiz Bank, Alhaji Umaru Abdul Mutallab, debunked insinuation that the bank was designed to only service the Islamic community, saying it was a bank for all Nigerians interested in doing ethical business. Jaiz Bank commenced operations in 2012 with a N3 billion deposit base. Since then it had a growth rate of 30%, with a current workforce of 600 staff across 30 branches across the country. On the future outlook of the bank, CEO Hassan Usman said Jaiz Bank’s prospects are bright, adding that the projection for the next five years indicated a gross revenue of N16 billion by 2021.

A Turkish court indictment ruled that some 5,000 academics have deposited cash in Bank Asya after an order from U.S.-based Islamic preacher Fethullah Gülen. After the July 2016 coup attempt Bank Asya was seized by the state over its links to the Fethullahist Terrorist Organization (FETÖ). The prosecutor of the case decided 15 years in prison for a total of 83 academics, of whom 21 are currently arrested. Some 33 of the suspects were alleged users of ByLock, an encrypted smartphone app that came to prominence after it revealed Gülenists used it to plan the coup. According to the indictment, the Gülen movement sent messages to senior members of the group on social media, ordering them to deposit cash in Bank Asya.

Applications for Islamic car loans in the UAE grew by 64.79% from 2015 to 2016. Despite growth in Islamic car loans, car loans based on traditional finance were more popular among UAE residents in 2016. Emirates NBD’s Feature-Packed Auto Loan was the most applied-for car loan in 2016. The second most applied-for auto loan of 2016 was that of HSBC, the third, fourth and fifth most applied-for car loans of 2016 were from Islamic banks. Emirates Islamic’s Auto Finance product came in third place, while Noor Bank’s Auto Finance and Ajman Bank’s Car Finance came in fourth and fifth respectively.

Finance Minister Ama Muhith has sought explanation from Bangladesh Bank about allegations of foreign investors of Islami Bank Bangladesh Limited (IBBL). The Islamic Development Bank (IDB) alleged that the IBBL board made the recent high-level changes in the absence and without consent of foreign shareholders. Two foreign investors including IDB hold 52% shares of the IBBL. At the board meeting January 5, former bureaucrat Arastoo Khan was elected chairman of IBBL. Changes were also brought to the posts of managing director and heads of various committees of the bank and also to chief of the Islami Bank Foundation. At present, of the 16 board of directors, seven are independent directors, seven from little known companies and two are foreign sponsors’ representatives.

The Islamic Development Bank (IDB) expressed dismay at the recent changes that took place at Islami Bank Bangladesh (IBBL). In a letter to Finance Minister Ama Muhith, IDB said the foreign shareholders feel that the governance of the bank has been taken away from them, although they own more than 52% of the shares, while IDB has a 7.5%. The IDB also criticised the way a board meeting at IBBL is convened. Furthermore, the IDB voiced its concern about the recent changes, about appointing the new managing director in an abrupt manner, not following the rigorous recruitment process. As a response to IDB's letter, Islami Bank said in a statement that all banking rules have been followed properly.

The Emir of Gwandu Muhammad Iliyasu Bashar has commended Jaiz Bank for its banking policies and principles of making life better for people. The royal father made the commendation at his palace when the Managing Director of the bank, Malan Hassan Usman, the Regional Manager, Dr. Nurudeen Liman and Habibu Isa Muhammad, the branch Manager of Birnin Kebbi paid him a courtesy call. Malan Hassan Usman expressed his appreciation of the support rendered by the Emir towards the establishment of the bank. He said the bank started operation 5 years ago with provisional approval to open three branches in Abuja, Kaduna and Kano but now the Central Bank of Nigeria (CBN) has given full approval to the bank to open its branches nationwide. Currently the bank has 27 branches with 3 new ones coming next week.

#Saudi-based Alinma Bank’s chief executive officer, Abdul Mohsen Al Fares discusses the bank's earnings and lending growth. Alinma Bank achieved a new record in the last quarter. Growth drivers include the infrastructure projects that started two years ago and will take other three of five years to complete. In terms of net interest margins, Al Fares believes that the recovery will come gradually. As interest rate is rising, the margin will also go up. Alinma Bank has expansion plans for 2017, it currently has 164 branches across the kingdom and it plans to open 12 new branches this year.

Summit will explore intersection of #fintech, #ESG and #Islamicfinance. #RFISummit17

January 24, 2017, Zurich, Switzerland –

Bringing together a diversity of perspectives is critical for continuing the growth occurring within responsible finance. On this premise, the Responsible Finance & Investment Summit 2017 will convene in Zurich, Switzerland from 3-4 May 2017 around the theme “Building Bridges, Expanding Impact”.

Recent estimates from industry stakeholders show continued growth in responsible finance assets in many geographies and sectors. Responsible investment in Europe grew by 42% during the past 2 years, while in the U.S., assets grew by 33%. In Islamic finance, which has a global presence with a significant presence in Europe, the Middle East and Asia, growth in the last 2 years has been 21%. Identifying actionable areas for collaboration will support continued growth towards a more sustainable financial system.

Kuwait Finance House (KFH) has welcomed the Central Bank of Kuwait (CBK)’s instructions and regulations regarding the role of Sharia Supervisory Boards in Islamic banks. Islamic Banks would be given until December 31st, 2017 to fulfill the requirements. Isa Abdullah Duwaishan, Executive Manager Shariah Control & Advisory at KFH, stated that the executive team of the board encompasses qualified Shariah controllers who audit the compliance and commitment of all bank departments to sharia rules. He reiterated the efforts of continually improving the skills of Shariah controllers and the Shariah staff in the bank through engaging them in specialized training courses. KFH's Shariah Supervisory Board issues Fatwa and Shariah reports that are viewed as a reference to other banks.

#Saudi Arabia’s Bank AlJazira has reported a drop in profits of 32.25% to SAR 872 million for 2016. Profits for Q4 2016 were down 4.4% on a year ago to SAR 152 million. Earnings per share were down from SAR 3.22 to SAR 2.18. However, the loans and advances portfolio contracted by 0.18% to SAR 42 billion. The bank attributed the fall in net income to a decrease in operating income by 14%. There is also a decrease in net special commission income, net trading income and other operating income against an increase in net exchange income and net banking fees. Total equity as of end-2016 was SAR 8,104 million, comparing with amount of SAR 7,413 million the previous year, an increase of 9%.

Islami Bank Bangladesh has undergone abrupt, major changes in its three top positions - chairman, vice chairman and managing director. Arastoo Khan, the former chairman of Commerce Bank has now become chairman of Islami Bank, replacing incumbent Mustafa Anowar. As a representative of Ibn Sina run by Bangladesh Jamaat-e-Islami leaders, Mustafa Anowar was serving as the chairman of the bank. He also resigned from the post of director as well as from the post in the bank’s foundation. The board of directors also replaced the bank’s managing director (MD) Mohammad Abdul Mannan by Union Bank’s MD Abdul Hamid Mia. Islami Bank Bangladesh has 307 branches including 57 AD branches and three offshore banking units as well as 13,229 staff members, as of December 2015.

Dubai Islamic Bank (DIB) sold its stake in Jordan Dubai Islamic Bank. DIB held 20.8% in Jordan Dubai Islamic Bank through a 40% shareholding in MESC Investments. MESC Investments had completed the sale of its stake in Jordan Dubai Islamic Bank to Jordan-based Bank Al Etihad and Etihad Islamic Investment Company. The value of the sale was not disclosed.