Bank Muamalat Malaysia

Bank Muamalat to grow revenue from Islamic pawnbroking

Bank Muamalat Malaysia aims to grow its revenue from Islamic pawnbroking (Ar-Rahnu) by up to RM50million. The bank's second pawnbroking campaign was launched on June 20 and will run for 10 months until March next year. Bank Muamalat consumer banking division head Zury Rahimee Zainal Abiden said the bank aims to tap the interest of up to 50,000 people in comparison to only 27,000 during the previous campaign period. Throughout this campaign, Bank Muamalat is offering a one kilogramme gold wafer as the main prize, 100 gramme gold wafer for the second prize and 50 gramme gold wafer for the third prize. Bank Muamalat is also offering a prize of a gold wafer on a monthly basis for more than 200 selected customers throughout this campaign period. From the first campaign the bank recorded up to RM26.9million of revenue from the gold business with an average of 2,700 new accounts every months. Bank Muamalat has more than 1.2 million customers and this segment of the business contributed 8% to the group earnings.

Project Ar-Rahn 2 listing oversubscribed

Muamalat Venture, a wholly owned subsidiary of Bank Muamalat Malaysia had a second listing on Malaysia's Investment Account Platform. The investment book was oversubscribed by more than 1.05 times on the first day of its listing. Project Ar-Rahn 2 is an investment in a share of aggregate capital contribution of Muamalat Venture under the musharakah joint venture with Permodalan Kelantan, in selected branches of Islamic pawn broking (Ar-Rahn) business activities. The investment of RM20 million in Project Ar-Rahn 2 is for a tenure of one year and expected to generate a return of 7% per annum for investors.

#Malaysia approaches #fintech with Islamic twist

Malaysia is adapting to fintech revolution by adjusting its financial regulatory guidelines with an Islamic angle. According to Muhammad bin Ibrahim, governor of the Central Bank of Malaysia, the recent Islamic finance initiative could be the next game changer. The Investment Account Platform (IAP) is a platform that connects lenders, banks and enterprises seeking funds, one that could shift the role of Islamic lenders to investment intermediaries. Serving as a central marketplace to finance small and medium-sized enterprises (SMEs), the IAP was launched by six Malaysian Islamic banks: Affin Holdings, Bank Islam Malaysia, Bank Muamalat Malaysia, Maybank Islamic, Bank Kerjasama Rakyat Malaysia and Bank Simpanan Nasional.

#Malaysia's Bank Muamalat to raise up to 1 bln rgt via #sukuk

Malaysia's Bank Muamalat will set up a 1 bn ringgit ($243.4 mn) sukuk programme after redeeming 400 mn ringgit worth of subordinated sukuk on June 15. Bank Muamalat's new sukuk programme has loss-absorption features to meet Basel III criteria, qualifying as Tier 2 capital. In February, Bank Muamalat and Malaysia Building Society called off merger talks that would have created one of the country's largest standalone Islamic banks.

RAM Ratings assigns A3 rating to Bank Muamalat’s proposed subordinated #Sukuk

RAM Ratings has assigned an A3/Stable rating to Bank Muamalat Malaysia's proposed Up to MYR 1 billion Subordinated Sukuk Murabahahh Programme. The proposed Sukuk is Basel III-compliant and will qualify as tier-2 capital. The bank aims to continue concentrating on personal and corporate financing this year while de-emphasising its home-financing portfolio, given the competitive mortgage segment. Bank Muamalat has made significant strides in cost savings, which had contributed to higher y-o-y pre-tax profits in 9M FY Mar 2016. Profitability, however, remains weak compared to peers.

Bank Muamalat signs #corporate integrity pledge with MACC

Bank Muamalat CEO Datuk Mohd Redza Shah Abdul Wahid and MACC deputy chief commissioner Datuk Seri Mustafar Ali signed the Corporate Integrity Pledge of Malaysia Anti-Corruption Commission (MACC). The signing ceremony was also witnessed by Bank Muamalat chairman Tan Sri Dr Mohd Munir Abd Majid. The signing of the pledge signifies Bank Muamalat's declaration against corrupt practices and its resolve to work towards a highly principled business environment.

Bank Muamalat listing? IPO a challenge due to volatile market

A potential listing of Bank Muamalat Malaysia Bhd could be an option should its major shareholder DRB-Hicom Bhd fail to find a suitable suitor to buy up a stake in the bank. The requirement to pare down DRB-Hicom’s stake in Bank Mualamat is to comply with Bank Negara’s requirements from current 70% to 40%, which has been delayed for a few years. Last week, the proposed merger between Malaysia Building Society Bhd (MBSB) and Bank Muamalat was called off as the parties involved were not been able to reach an agreement on the terms and conditions. Disagreement over valuations and control were believed to be factors that led to the breakdown of negotiations that began last October.

MBSB, Bank Muamalat merger talks fall through

The proposed merger of Malaysia Building Society Bhd (MBSB) and Bank Muamalat Malaysia Bhd, to create the country’s biggest standalone Islamic bank has fallen through. MBSB said on Tuesday that after a series of discussions and negotiations, the financial institution and the shareholders of Bank Muamalat -- DRB-Hicom Bhd and Khazanah Nasional Bhd – have not been able to reach an agreement on the terms and conditions of the proposed merger. Accordingly, the parties have mutually agreed to end all discussions and not proceed with the proposed merger. The deadline for the proposed merger between MBSB and Bank Muamalat was on Tuesday.

Khazanah may sell Bank Muamalat stake post-merger

Khazanah Nasional Bhd may sell its stake in Bank Muamalat Malaysia Bhd only after the latter merged with Malaysia Building Society Bhd (MBSB) to form the country's largest full-fledged Islamic bank. Reiterating that it is not taking the lead in negotiations, Khazanah managing director Tan Sri Azman Mokhtar said the country's strategic investment fund is not particular about the structure of the merger, provided the valuations are fair. It has been reported that the merger would be effected via a share swap. There have been various scenarios bandied about on Khazanah's preferred outcome for its 30% stake in Bank Muamalat. DRB-Hicom Bhd holds the remaining 70% of Bank Muamalat.

Khazanah to exit in Bank Muamalat merger

Khazanah Nasional Bhd plans to divest its entire 30% stake in Bank Muamalat Malaysia Bhd in the proposed merger between the lender and Malaysia Building Society Bhd (MBSB), sources say. That it plans to sell the entire 30% stake isn’t exactly surprising considering that Khazanah has long made it known that it considers the stake a “non-core holding”, which meant that it was open to letting it go at the right price. Another reason for the planned divestment is that Bank Negara Malaysia is not keen on the government investment arm owning major stakes in more than one bank. It already owns 29.34% in CIMB Group Holdings Bhd.

Khazanah's MD says 'not in a rush' to sell Bank Muamalat stake

Khazanah Nasional Bhd is "not in a rush" to sell its 30% stake in Bank Muamalat Malaysia Bhd, under the proposed merger with Malaysia Building Society Bhd (MBSB). Khazanah's managing director Tan Sri Azman Mokhtar said the Malaysian state-owned investment arm's decision was incumbent upon the negotiated value for its Bank Muamalat stake. He cited the right price and the right configuration as requirements for a sale. DRB-Hicom Bhd holds the balance 70% stake in Bank Muamalat. According to Azman, as Khazanah is only a 30% shareholder in Bank Muamalat, Khazanah is not taking the lead in the merger talks. Khazanah will make a decision based on whatever they decide, he added.

MBSB-Bank Muamalat merger raises ‘asset quality’ concerns - Affin Hwang

Malaysia Building Society's (MBSB) planned merger with Bank Muamalat Malaysia is expected to create a financial services entity with a collective asset size of some RM60 billion. Affin Hwang Investment Bankwrote in a note today that MBSB and Bank Muamalat's assets were valued at RM41 billion and RM22 billion respectively. Nevertheless, there could be potential write-offs of the loan book subsequent to due diligence exercises, which is likely to follow suit. However, Affin Hwang also said they were not too optimistic about the merger, as previously there have been other merger discussions between Bank Muamalat and other parties that were unsuccessful.

RAM Ratings reaffirms Bank Muamalat ratings, RM400m Sukuk

RAM Rating Services has reaffirmed the A2/Stable/P1 financial institution ratings of Bank Muamalat Malaysia Bhd. The ratings agency had on Monday also reaffirmed the bank’s A3/Stable rating of its RM400mil Islamic subordinated Sukuk programme (2011/2026). The one-notch difference between the bank’s long-term financial institution rating and that of its subordinated Sukuk reflects the subordination of the debt facility to the bank’s unsecured obligations, it said. RAM Ratings said the bank’s asset-quality indicators had weakened during the period under review. Its gross impaired-financing (GIF) ratio had increased to 3.0% as at end-December 2014 (end-March 2014: 2.7%), with the largest upticks in home and personal financing.

MARC assigns final rating of AIS to Bank Muamalat Malaysia Berhad's Sukuk of up to RM2.0 Billion; Outlook stable

MARC has assigned a final rating of AIS to Bank Muamalat Malaysia's Islamic Senior Notes Programme (Senior Sukuk) of up to RM2.0 billion under the Islamic principle of Wakalah Bi Al-Istithmar with a stable outlook. Upon review of the final documentation of the Senior Sukuk, MARC is satisfied that the terms and conditions of the Senior Sukuk have not changed in any material way from the draft documents on which the earlier preliminary rating of AIS was based. The full details on the assigned rating have been provided in Bank Muamalat's preliminary rating announcement on June 24, 2014 which can be accessed at

Bank Muamalat to launch Islamic private banking

Bank Muamalat Malaysia Bhd expects to launch Islamic Private Banking within a year to cater to the growing demand for the service. Chief executive officer Datuk Mohd Redza Shah Abdul Wahid said the bank is currently studying the product concept and expected to complete the framework in the next six months. Mohd Redza signed a memorandum of understanding with the Bank of London and the Middle East to penetrate the new segment in a wholesome approach. He also said that the Bank of London and the Middle East had the expertise in dealing with private banking customers, therefore it was a good opportunity for Bank Muamalat to work together with the bank.

Bank Muamalat to increase total deposits by up to 20pc this year

Bank Muamalat Malaysia Bhd plans to grow its total deposits by up to 20 per cent this year from RM15 billion at present by diversifying its depositor base. Chief Executive Officer Datuk Mohd Redza Shah Abdul Wahid said the bank was aggressively diversifying its depositor base through the "Oh Yeah Deposit Campaign" as well as working with small and medium enterprises (SMEs) and business chambers. On overseas ventures, he said the bank was exploring opportunities for tie-ups with Islamic banks in Asean countries which were expected to take place in the next 12 months. Meanwhile, Chief Operating Officer Asri Awang said Bank Muamalat of optimistic of a loans growth of 15 per cent this year from its current financing base of RM11 billion.

Bank Muamalat to boost SME funding

Bank Muamalat Malaysia expects financing for small and medium enterprises (SMEs) to contribute between 15% and 20% of its total financial portfolio for 2014. CEO Mohd Redza Shah Abdul Wahid said this will represent up to RM1.2 billion of its loans. He said the bank’s loan growth for the consumer segment was 18%, however, it was reduced to 12% this year. This is due to the bank's consumer segment softening after Bank Negara Malaysia’s (BNM) measures especially on home financing and personal financing. Besides, Bank Muamalat signed a MoU with Kuala Lumpur and Selangor Indian Chamber of Commerce and Industry (KLSICCI) and Kuala Lumpur Malay Chamber of Commerce (KLMCC). It will help the institution to increase its customer base for SME financing.

DRB-Hicom says yet to finalise buyer for stake in Bank Muamalat

DRB–Hicom has yet to finalise the new party for its divestment of a 30 per cent stake in its banking unit, Bank Muamalat Malaysia. The dilution of the stake in the country’s third largest Islamic lender has been a prolonged process as the conglomerate is looking into a strategic partnership or an exercise that could add value and increase the bank’s penetration into the Islamic financial business in Malaysia. It was reported earlier that Bank Negara Malaysia (BNM) had mandated DRB-Hicom to dilute some of its 70 per cent stake in Bank Muamalat. It was also reported that DRB-Hicom had negotiated with Affin Holdings on a potential acquisition but talks were called off due to pricing issues. The bank remains sidelined as it currently has no new products to introduce or new branches to launch.

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