IslamicFinance.de

Malayan Banking Bhd (Maybank) and Singapore-based RB Capital inked a S$260mil (RM751mil) Islamic financing deal, one of the biggest Islamic deals in Singapore. The landmark deal involved a 442-room mid-tier Holiday Inn Express Singapore Clarke Quay as the underlying security. The bank is continuously looking at growing its Islamic banking business in the region, especially in Singapore and Indonesia, which each currently accounts for about 5.0% of Maybank Islamic’s revenue. Maybank Group’s Islamic banking business in 2015 surged 20.4% in total income compared to the year before.

Malayan Banking Bhd (Maybank) has appointed Datuk Mohaiyani Shamsudin as chairman of Maybank Investment Bank and Datuk R Karunakaran as Chairman of Etiqa Insurance Bhd (EIB) and Etiqa Takaful Bhd (ETB). Maybank said the changes in chairmanship of its key subsidiaries followed the retirement of some directors. Mohaiyani is currently a director of Maybank. She is also the chairman of Maybank Asset Management Group Bhd and Maybank Asset Management Sdn Bhd. Karunakaran is a director of Maybank and currently sits on the boards of Maybank (Cambodia) Plc, and others. In addition, he is a director of Bursa Malaysia Bhd, IOI Corporation Bhd and Integrated Logistics Bhd.

Malayan Banking Bhd (Maybank) provided more Islamic loans than non-Shariah compliant financing in Malaysia for the first time in 2015 and the business was also more profitable. Maybank Islamic Bhd contributed 51 per cent of loans by the nation's biggest lender, up from 44 per cent in 2014, and a share 10 to 20 percentage points higher is possible, chief executive officer Muzaffar Hisham said. The unit achieved an average 16 per cent return on equity in the last four years, compared with 14 per cent for its parent. Maybank Islamic's total financing rose 21 per cent to RM131.1 billion (S$44.2 billion) last year. Growth will probably moderate to less than 10 per cent in 2016.

The asset management arm of Malaysia's Malayan Banking Bhd has launched its first U.S. dollar-denominated mutual fund that invests in Islamic bonds. The new fund will invest partly in sukuk issued from Gulf countries. This is rare for Malaysian funds, because there is an abundant supply of local ringgit-denominated sukuk, but demand for dollar-denominated paper has been growing. The fund will initially be available to Malaysian investors only, although the firm plans to distribute the fund overseas as well, Nor' Azamin Salleh, chief executive of Maybank Asset Management Group Bhd, said.

Malaysia's Malayan Banking (Maybank) has launched an Islamic asset management unit to cater to growing investor appetite for sharia-compliant investment products. Maybank asset management will leverage the Maybank group's network of business lines, which range from consumer banking to Islamic insurance, as well as its geographical presence across Asia. It aims to launch Asian-themed investment funds using a bottom-up investment strategy, with products to be marketed primarily in Malaysia and Indonesia. Maybank acquired Indonesian asset management firm PT GMT Aset Management, and it will also explore opportunities in the Middle East through Maybank Investment Bank's stake in Saudi Arabia's Anfaal Capital, according to Nor Azamin Salleh, chief executive of Maybank asset management.

Malayan Banking (Maybank) has set up Maybank Islamic Asset Management (Maybank IAM) company in London. Maybank IAM's CEO Azmeen Adnan said the company aims to become a key player and catalyst in the development of the global Islamic asset management landscape. The company now offers a fixed priced Shariah real estate backed fund, the Amanah Hartanah Bumiputra, which has gained popularity among investors. In addition, it is managing direct equity portfolio mandates for haj funds and direct mandates investing in Asean countries. Collectively, a total of US$8 billion (RM25.17 billion) worth of Islamic assets under management resides within Maybank. Maybank IAM is owned by Maybank through Maybank Asset Management Group.

Maybank Islamic Bhd, the Islamic banking arm of Malayan Banking Bhd (Maybank), aims to expand to all Asean member countries that Maybank has a presence in. According to its CEO Muzaffar Hisham, the bank intends to continue its regional expansion to other Asean nations after focusing on Singapore and Indonesia as part of its internationalisation initiative. Muzaffar said the bank has invested a lot of time and effort in the expansion opportunities, which were in line with the aspiration of Bank Negara Malaysia to internationalise Islamic finance. The bank grew by an average of 25% per year, held 30% market share locally and contributed 30% to the loans portfolio of Maybank domestically. Up to the first quarter of this year, Maybank Islamic has 4 million depositors with a deposit value of RM70 billion.