Barwa Bank Group said it will spare no effort to gain the largest possible share of financing infrastructure projects in the country. Barwa Bank chairman Sheikh Mohamed bin Hamad bin Jassim al-Thani said due to the national economy’s provision of promising opportunities, the bank will provide all possible support to the growth of the country’s economy. The group recorded strong growth in each of the financial position and profits, as net profit for 2016 rose to QR738.8mn and earnings per share reached QR2.49. The growth in the group’s business and the increase in its investment activities go in line with maintaining asset quality and risk management policies with total non-performing loans accounting for just 1.5% of the net financing portfolio.
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.
Qatari banks Masraf Al Rayan, Barwa Bank and International Bank of Qatar have begun initial talks for a potential merger. This deal would create the Gulf state's second-largest bank and it would have assets worth more than 160 billion riyals ($44 billion). If the deal goes ahead, it would be a rare example of consolidation among banks in the Gulf, which have previously been reluctant to tie up. The previously lavish state spending is now being trimmed to adjust to lower oil prices and the argument for consolidation is now more compelling. Though negotiations have begun, there is no guarantee any agreement will be reached. The proposed merger of Rayan, Barwa and IBQ depends on financial and legal due diligence, as well as securing approvals from regulatory authorities and shareholders of all three banks.
Barwa Bank has appointed Nasser Rashid Al Humaidi as group chief operating officer. Reporting to the acting GCEO of Barwa Bank Group, Khalid Yousef Al-Subeai, Al-Humaidi will be tasked with developing a unified structure to improve operational efficiency, increase proficiency and modernise processes and procedures, by using the latest financial sector tools. With more than 19 years’ experience in the operations management and information technology sectors, Al-Humaidi has a track record in a number of institutions from different sectors, including telecom, real estate development, oil and gas as well as national steering committees. He worked as the executive director for Operations & Support at Qatar Development Bank for the past three years.
Qatar’s Barwa Ban has announced the appointment of Mr. Nasser Rashid Al-Humaidi as the Group’s Chief Operating Officer (GCOO). Mr. Al-Humaidi, who will be directly reporting to the Acting GCEO of Barwa Bank Group Mr. Khalid Yousef Al-Subeai, will be developing an integrated structural framework to enhance operational efficiency, boost productivity and streamline processes and procedures by employing the latest financial sector technologies. He is backed up by more than 19 years of experience in the ??operations management and information technology sectors. He worked as the Executive Director for Operations & Support at Qatar Development Bank over the past three years.
The First Investor (TFI), the investment banking arm of Qatar’s Barwa Bank, is looking for investments in Turkey, in sectors ranging from real estate to food, its acting chief executive Yousef Al Obaidan said. TFI has not specified a budget for Turkey, although its existing holdings in the Gulf region average around $100-$150 million per investment, Al Obaidan said. Individual investments in Turkey could exceed that, he said. The bank, which is also involved in private equity and asset management, is particularly interested in Turkey’s real estate, healthcare, education and food and beverage industries, Al Obaidan said. TFI is already active in Turkey, where Kiler, a REIT, mandated it in December for the sale of the Istanbul Sapphire shopping center and residence.
Qatar's Barwa Bank has listed a $2 billion Islamic bonds programme on the Irish Stock Exchange, taking the lender a step closer to tapping the sukuk market for the first time. Rating agencies Moody's and Fitch assigned ratings of A2 and A+ respectively to the sukuk programme. Barwa Bank hasn't specified a timeframe or size for its potential debut deal. Barwa is classified as a systemically important bank, with 53 percent of its share capital owned by the Qatari government through Qatari Holding LLC and other government funds. Barwa's sukuk programme uses an agency-based structure known as wakala. The transaction is being arranged by Citigroup.
Thomson Reuters in partnership with Barwa bank released today the findings of its fourth consecutive Sukuk Perceptions and Forecast study. A buoyant 2014 had sukuk market players optimistic for another robust year but market uncertainty, especially with the drop in oil prices and the expected increase in global interest rates, have dampened activity in the market. The global sukuk market in 2015 welcomed significantly fewer new issuers compared to 2014. Total sukuk issued in the first 9 months of 2015 dropped a drastic 38.6% to $48.8 billion from $79.5 billion for the same period in 2014. The sukuk papers were a lso issued in 12 currencies in first nine months of 2015 compared to 16 over the same period in 2014.
Turkish Islamic bank Albaraka Turk has received initial pricing feedback in the 10 % area for a potential U.S. dollar-denominated sukuk issue which would bolster its supplementary or Tier 2 capital, sources familiar with the matter told Reuters on Thursday.
The lender has received indications of interest totalling over $250 million, including those from joint lead managers, for the ten-year non-call five sukuk, the sources said. A potential deal is expected early next week subject to market conditions, they said.
Albaraka Turk, a unit of Bahrain-based Al Baraka Banking Group, has chosen Barwa Bank, Dubai Islamic Bank, Emirates NBD, Nomura, Noor Bank, Standard Chartered and QInvest to arrange the sukuk issue.
Barwa Bank, Qatar’s newest Islamic bank in which government is a majority owner, has found its niche in the country’s growing Islamic banking sector, benefiting from Qatar’s strong economy and favourable operating environment, according to Moody’s. Continued high public spending will continue to create further business opportunities for local banks, particularly those with well-established government links like Barwa, the rating agency said. Furthermore, Barwa will benefit from regulators’ policies, which prohibit conventional financial institutions operating Shariah-compliant banking windows and reduce the competition for a fast-growing customer segment. Nevertheless, the bank’s asset quality will likely remain stable over the next 12 to 18 months.
Barwa Bank has promoted Talal Ahmad Al Khaja (pictured) to Chief Communications officer. Al Khaja will oversee marketing and communications and public and shareholder relations. Prior to joining the bank in 2009, he worked across private sector institutions and organisations. Holding a Master’s in business management, a bachelor’s degree from Qatar University, and professional certifications, he has amassed over nine years’ experience in administration, marketing, public relations and corporate governance. During his tenure at the bank, he has contributed to acquisitions of the group’s affiliate companies and subscription management in capital financing in 2011. His efforts led to the establishment of the group’s Investor and Shareholder Relations Department.
Barwa Bank's net profit for the half-year stood at QAR 412 million, while earnings per share rose to QAR 1.39in the first half of 2015, compared with QAR 1.38over the corresponding period in 2014. Underlined by growth across its financing assets and investment securities, the bank's total assets soared by 16% to QAR 41.3 billion for the first half of the year; financing assets alone registered an increase of 10% to exceed QAR 24.4 billion. Owing to Barwa Bank's focus on product and service development and integration across business segments, as well as to a heavy push on tech-driven innovation, customer deposits for the first half of 2015, increased by 4% to stand at QAR 23.2 billion.
Shareholders of Qatar's Barwa Bank approved plans for a $2 billion senior unsecured sukuk programme that could be issued in various currencies, the lender said in a statement on Tuesday. The Islamic bank did not specify a timeframe or size for a potential debut deal. It also received approval to pay a cash dividend of 10 percent to shareholders, the statement said.
Qatar's Barwa Bank has hired Cenk Karacaoglu as head of syndications in the debt business, reporting to the bank's head of capital financing Arsalaan Ahmed. Before joining Barwa, Karacaoglu was briefly Al Rajhi Bank's head of trade finance, a post he held for around four months. Prior to that he was a vice president in the fixed income business of Turkey's Bank Asya for just over 11 years. Before he became a banker, Karacaoglu worked in Singapore Airline's finance department for five years. His hire is "part of the ongoing investment into the debt capital markets platform," a spokesperson for Barwa Bank said.
The International Finance Facility for Immunisation (IFFI), for which the World Bank acts as treasury manager, plans to sell a dollar-denominated Islamic bond on November 27. IFFI will look to sell a three-year sukuk of benchmark size and pay an interest rate between 15 basis points and 17 basis points over Libor. Qatar's Barwa Bank, Malaysia's CIMB , National Bank of Abu Dhabi , the investment banking arm of Saudi Arabia's National Commercial Bank and Standard Chartered are arranging the transaction. IFFI is rated AA by Standard and Poor's and AA+ by Fitch.
Barwa Bank's profit reached QR641mn in the third quarter of this year, up by 43% on this time last year. The bank registered a third-quarter net profit of QR447mn in 2013, with total assets increasing to QR36.6bn, a 28% rise over the same period in 2013. Financing assets showed a 31% growth to QR22bn in the third quarter and customer deposits grew by 30% to QR22.1bn. Earnings-per-share improved to QR2.12 compared with QR1.9 for the same period last year. The bank's acting group chief executive officer, Khalid Yousef al-Subeai attributted the growth to improvment in processes and managment practises, which has led to greater efficiency and improved profitibilty.
Qatar's Barwa Bank has been appointed by the International Finance Facility for Immunisation Company (IFFIm) as Joint Lead Manager (JLM) and bookrunner for a benchmark medium term sukuk issue. Rated AA by Standard and Poor's, Aa1 by Moody's and AA+ by Fitch, IFFIm, for which the World Bank acts as Treasury Manager, has mandated Barwa Bank , amongst four other banks, to arrange investor meetings in the Middle East, with a sukuk expected to follow the roadshow. The proceeds of the sukuk will be used to provide free vaccines and related health system strengthening support to many of the world's poorest nations.
The International Finance Facility for Immunisation Co. (IFFI), for which the World Bank acts as treasury manager, has picked four banks for a potential U.S. dollar-denominated sukuk. Rated AA by Standard and Poor's and AA+ by Fitch, IFFI has mandated Qatar's Barwa Bank, National Bank of Abu Dhabi, and Standard Chartered to arrange investor meetings in the Middle East, Europe and Asia. A potential sukuk offer may follow the roadshows - for which a schedule has not been given - subject to market conditions before the end of the year.
Barwa Bank , Sharia compliant banking service provider from Qatar, has announced the opening of a representative office in Dubai International Financial Centre (DIFC). ?Currently in its fifth year of operation, Barwa Bank enjoys strong relations with major corporates, an increasingly growing SME portfolio and one of the fastest growing retail banking activities in Qatar. This momentum is expected to increase in 2014, as it continues to build up activities. This is the first time Barwa Bank has opened an office overseas and is in line with the bank's plans to develop the Sharia-compliant financial market outside as well as within Qatar, said Khalid Al Subeai, Acting CEO at Barwa Bank.
Barwa Bank has been appointed as one of five Joint Lead Managers for the UK's £200m debut sovereign sukuk. The Qatari lender takes its place alongside HSBC, Standard Chartered, National Bank of Abu Dhabi and CIMB of Malaysia. Of the five banks involved, Barwa Bank is the only Qatari bank selected and the only wholly Shariah-compliant mandated bank on the panel. Britain's first sovereign sukuk delivers on the government's commitment to become the western hub of Islamic finance. Very strong demand for the sukuk is expected, resulting in a price that delivers good value for money.