Malaysia has been rocked for more than a year by a financial scandal involving Prime Minister Najib Razak, a state investment firm, and an alleged frenzy of embezzlement. Authorities in a half-dozen countries have launched investigations into suspicions that several billion dollars was looted from complicated financial transactions involving 1MDB and parked around the world. Over the past year, Najib has purged 1MDB critics from his cabinet, curbed domestic investigations, and moved to prevent further discussion of the scandal. Najib has dramatically strengthened his control of the country. A state-level election and two parliamentary by-elections were won handily by Najib's ruling coalition, further bolstering his position.
Bahrain’s Eskan Bank has enjoyed a very fruitful 2015. The bank recorded positive growth in its mortgage-loan portfolio and also made great strides in several of its social and affordable housing initiatives. Total net income grew by 8% during the year, while the bank’s capital-adequacy ratio continued to improve to 151.72%. Although the Ministry of Housing (MOH) is responsible for the allocation of social-housing financing to Bahraini citizens, Eskan Bank provides pivotal support through the processing of approved social-housing financing applications.
The Central Bank of Nigeria recently issued a national licence to Jaiz Bank. The bank commenced the first phase of its rollout with branches in Lagos, Port Harcourt, Ibadan and Ilorin and shortly will be present in all the states of the Federation. Jaiz Bank has recently concluded a Rights Issue, which raised its capital to N15 bn and the issue was oversubscribed by about 3%. According to Deputy Managing Director Mahe Abubakar the target is to raise the capital base of N25 bn before the end of the year. This will position the bank to compete efficiently in this highly competitive sub-sector of the economy. There are some people that misunderstand the concept of non-interest banking, but Jaiz Bank is open to all Nigerians, irrespective of their religions.
The 15th Annual General Meeting (AGM) and 12th Extraordinary General Meeting (EGM) of Shahjalal Islami Bank was held on the 26th of June 2016 in Dhaka. The meeting approved 13% cash dividend for the shareholders for the year 2015. The chairman of the bank, A. K. Azad said the entire index of the bank, including deposit, investment and profit are in a stable position even prevailing severe competition in the banking sector. The program was conducted by Md. Abul Bashar, VP and company secretary of the bank.
Dubai Islamic Bank (DIB) closed an approximately AED 3.2 bn ($860 mn) rights issue, thereby increasing the bank’s share capital to AED 4.9 bn from AED 3.9 bn as of March 2016. According to Moody's this capital increase is credit positive for DIB because it replenishes reserves and enhances loss-absorption. Moody’s estimates that DIB’s consolidated tangible common equity to risk-weighed-assets ratio will improve to around 12.3% from 9.8% as of March 2016. The new capital will also increase the bank’s reported Tier 1 capital ratio to 18.1% from 15.6%. The additional capital will support the bank’s solvency in the context of continued balance sheet expansion.
According to Standard & Poors recent government initiatives will spur momentum for Turkey’s fast-growing Islamic banking market. Islamic banks in the country have doubled their share of overall banking assets over the past decade to roughly 5% or $42.2 billion at year-end 2015. The annual volume of sukuk issuance in the country increased nearly 20-fold over the same period, growing from $100 million in 2010 to almost $2bn by year-end 2015. Credit analyst Mohamed Damak said Turkish Islamic banks’ market share is expected to double to more than 10% by year-end 2025.
Dar Assafaa se prépare à devenir ASSAFAA BANK, une banque participative qui exercera conformément aux dispositions de la nouvelle loi bancaire. Dans ce cadre, Dar Assafaa recrute des Directeurs d’Agences sur les villes de Tétouan, Rabat, Laâyoune, Dakhla, Tanger et Casablanca. Dar Assafaa est la première institution financière marocaine mettant à la disposition du public des formules de financement basées exclusivement sur les produits alternatifs.
The controversial sale of the Kasb Bank to Bank Islami has been challenged before the Islamabad High Court. The petition was filed by Mohammad Khalid Randhawa, a shareholder of the Kasb bank, who claims that Kasb Bank was sold to the Bank Islami for only Rs1,000. He was praying before the court to declare the sale illegal. Judge Aamer Farooq made documents related to the inquiry of the deal as part of judicial record and adjourned the case.
Banque Misr, Egypt's second-largest state lender, has obtained a $105 mn murabaha financing facility from three United Arab Emirates banks, Chairman Mohamed Mahmoud Eletreby told Reuters Tuesday.
Egypt has been struggling since a 2011 uprising drove away tourists and foreign investors, putting pressure on foreign reserves which halved to $17.5 bn in May.
Eletreby said the facility was obtained from three of the largest UAE banks, but declined disclose their names. He said the facility will strengthen Banque Misr's foreign currency resources and will be paid back in two years.
Qatar Islamic Bank has announced that it will be the preferred financing partner of Jaidah Equipment under the terms of the strategic partnership QIB forged with the Qatar-based equipment dealer.
QIB general manager of Wholesale Banking, Tarek Fawzi, and Jaidah Equipment managing director, Ayman Ahmed, led the official signing before senior executives from both organisations at QIB’s corporate headquarters in Doha.
As part of the agreement, customers of Jaidah Equipment who would like to purchase new equipment are entitled to use the bank’s Fleet and Heavy Equipment Financing scheme, which was introduced last year as part of QIB’s Aamaly programme, a collection of products and services designed specifically for small and medium-sized enterprises.
Through its Aamaly programme, QIB aims to foster the growth of SMEs and help diversify the country’s economy in line with Qatar National Vision 2030.
“We are pleased to be partnering with Jaidah Equipment. This new relationship enhances the value of QIB’s Aamaly programme and makes it easier for SMEs to expand their businesses in the growing Qatar market,” Fawzi said.
The bidding process for Asya Katilim Bankasi A.S. - with a June 23 deadline - will end uncertainty over the future of the bank, but creditors face either its successful sale or its liquidation, says Moody's Investors Service in a report published today.
Bank Asya's creditors face two outcomes -- either a transfer of ownership to a successful bidder or the bank is liquidated and its banking license withdrawn," says Irakli Pipia, a VP - Senior Credit Officer at Moody's.
Moody's notes that the bidding process is nevertheless a positivedevelopment for creditors, as it provides a potential upside scenario.In the event of a winning bid by a new owner committed to recapitalizingthe bank, the rating agency would expect a rapid recovery in its credit profile.
"An acquisition of Bank Asya by a well-established player is likely to restore customer confidence in the bank and turn around the outflow of deposits," explains Mr. Pipia. "However, the likelihood of such an outcome is impossible to assess given the limited information about potential interest from bidders."
The country’s leading Sharia-compliant lender, Qatar Islamic Bank now controls more than 43.5% of the Islamic banking market share in Qatar and 11.5% of the overall market. The quality of its customer service, portfolio of products and services, solid financial performance and measured approach to growth have also contributed to it recently adding the ‘Best Bank in Qatar’ honor from Euromoney to its list of awards. Group CEO Bassel Gamal explains QIB’s winning formula, its dedicated support for SMEs, and the opportunities Islamic finance holds for clients and investors.
What are the main opportunities in Islamic finance in Qatar?
Islamic finance has recorded many significant achievements over the last few years as it continued to strengthen its capabilities and grow by providing the products and services, as well as the capacity, to structure and finance major infrastructure projects in Qatar, in line with the country’s National Vision 2030.
The Savings Deposit Insurance Fund (TMSF) decided to extend the deadline for the preliminary qualification to offer bids in the sale of Bank Asya. Al-Rajhi Bank, Bank Al-Jazeera (BAJ), Al-Bilad Bank and Alinma Bank are the possible banks that asked for the one-week extension of the deadline from June 10 to June 17 to prepare the documents. According to Moody's, in the case that Bank Asya is sold to a well-known bank and strengthens its financial strength, it will be in a better condition to pay its debts to its creditors.
A senior Iranian banker has dismissed a recent report by the research center of the country's parliament, which suggested that most banks in the Islamic Republic are on the verge of bankruptcy. Esmaeel Lalehgani, Vice Chairman and Managing Director at Bank Saderat Iran, has said that the country enjoys a strong and stable banking structure. He confirmed that there are some shortcomings in the system regarding the government's debts, low capital and overdue debts. However, these shortcomings do not mean that the banks are on the verge of the bankruptcy.
London Stock Exchange welcomes ICD to mark the listing of its MTN Programme and inaugural $300 million five year Sukuk. ICD will use the proceeds of the Sukuk to support investments in private sector projects. The MTN program, which is a Wakala structure, will serve as ICD’s main funding platform for regular issuance of Sukuk. HSBC was the arranger for the MTN Program and the syndicate group for the Sukuk included 13 international and regional banks.
Hassan Usman has been appointed as the new Managing Director of Jaiz Bank. The decision of the Board of Directors was reached after a rigorous selection exercise. Hassan Usman takes over from Mahe Abubakar who has acted as MD since December 2015. Mr. Usman had previously acted as Managing Director in 2013. The Bank recently obtained a National Operating License from the Central Bank of Nigeria (CBN). This will enable it to spread across all the 36 states of the Federation.
In #Nigeria the emir of Kano, Muhammad Sanusi II, has lauded Jaiz Bank for declaring a profit of over N700 million in the four years of its operation. The bank's managing director Mahe Abubakar Mahmoud disclosed that the Bank had a total balance sheet size of N65 billion by May 31, 2016. He explained that customers’ deposit stood at N50 billion, while the shareholders fund stood at N15 billion, making the bank worth N65 billion. Abubakar said the bank was expanding its branches across the nation, with four additional branches in Kano and the neighbouring states.
Dubai Islamic Bank is opening subscriptions on Tuesday for a 3.16 bn dirham ($860.3 mn) rights issue. The bank is offering 988.4 mn new shares to shareholders in total, with subscription open on the basis of one new share for every four currently held. Shares are priced at 3.2 dirhams each, a substantial discount to Monday's closing share price of 4.95 dirhams. DIB is the latest bank in the Gulf to replenish reserves after a period of strong lending growth. At the end of March DIB's total capital adequacy ratio stood at 15.6%, above the UAE's regulatory minimum of 12%.
Al Baraka Bank Egypt announced that the net income of the bank jumped by 101% for the first quarter of 2016 compared to the same period in 2015. Total assets also increased by 4%, financing and investments portfolio by 4%, deposits by 5% and equity by 6% at the end of March 2016. Chairman Adnan Ahmed Yousif said the bank has an ambitious branch expansion and geographical spread plans. It is on track to complete its new headquarters building in the New Cairo area. The bank's rolling expansion programme envisages a network of 42 branches by 2020.
A new Islamic bank will open in the Palestinian territories later this year. Al Safa Bank, founded locally, will be based in Ramallah, the seat of the Palestinian government in the Israeli-occupied West Bank. It will be capitalised at $75 million. Co-founder Abdel-Rahim Al-Hassan said the bank has already bought some 37 million shares, valued at $37 million, with another 38 million shares now on sale to the public. Al Safa will be the third bank in the West Bank to operate under Islamic law. The bank's services will include project-funding, foreign currency trading and real estate investment.