Bank Islam's managing director Datuk Seri Zukri Samat said he would not extend his contract when his tenure ends in June this year. When asked on his successor, Zukri said there was still plenty of time to search for a successor since it was only January. On Bank Islam Visa Infinite MPN credit card-i, he said it was introduced in response to Bank Negara’s call for a cashless society. He said the collaboration with MPN was the bank’s continuous cooperation with the academic institutions starting with the introduction of the UniDebit card in 2012. Meanwhile, MPN chairman Professor Tan Sri Zakri Abu Hamid welcomed the strategic cooperation to strengthen the corporate image of both parties.
BIMB Holdings Bhd’s share price on Bursa Malaysia reacted well following announcement that its wholly-owned subsidiary, Bank Islam Malaysia Bhd aimed to increase the fund of two products under its Term Investment Account over the next six months. As at 10.26am today, the counter was four sen better at RM4.05 with 4,900 shares changing hands. Bank Islam is aiming for a RM2 billion fund for Waheed Investment Account (WIA Wakalah) and Special Investment Account (Mudarabah). Another account, the Al-Awfar Account, was also launched today. The bank also planned to maintain a RM2 billion fund size under its Transactional Investment Account.
Malaysia's Bank Islam issued its first sukuk tranche worth 300 million ringgit ($83.13 million) under its 1 billion ringgit sukuk murabahah programme, BIMB Holdings Bhd said on Wednesday. The tranche has a 10-year tenure and could only be redeemed after 5 years. Proceeds will be used to finance its banking activities and working capital, all of which would be sharia compliant.
BIMB Holdings Bhd (BHB), which owns Bank Islam Bhd, is still keen to acquire a stake or even have a management control in Bank Syariah Indonesia as part of its expansion plan. Its group managing director and chief executive officer Johan Abdullah said the talks were still at a preliminary stage, and there was still no material development. Due to the regulatory uncertainty in Indonesia, Johan said that the group would engage the Indonesian authorities before making any decision to acquire a stake in the bank. At the firm's EGM, shareholders gave their nod to the proposed dividend reinvestment plan (DRP) that would provide shareholders with the option to elect to reinvest in whole or in part of their cash dividend with the new ordinary shares of RM1 each in BHB.
Selangor Menteri Besar Tan Sri Abdul Khalid Ibrahim today said there was nothing dubious about the out-of-court settlement with regard to the loan of more than RM60 million he took from Bank Islam. He said he had taken court action against the irresponsible people who had slandered him. Khalid made the statement when speaking at the monthly gathering of Selangor government departments. The Port Klang state representative reminded those who were not satisfied with him to lodge reports with Bank Negara for an audit to be carried out and not to act as they pleased. He said he had decided to remain silent as he had to protect the bank’s secrecy practice.
There are several issues which appear to indicate that Selangor Menteri Besar Tan Sri Abdul Khalid Ibrahim's integrity has been compromised. Shah Alam MP Khalid Samad said he hoped Abdul Khalid will clear the air over several issues, including his out-of-court settlement with Bank Islam over his RM66.67 million debt. Another issue Abdul Khalid is expected to clarify is his claim that he will be suing Permodalan Nasional Berhad (PNB) and will win RM300 million. Khalid also expressed doubts over the awarding of a RM591 million contract to Eco World to build 2,400 affordable houses in Sungai Sering, Ukay Perdana. PKR has been pressuring Abdul Khalid to step down from his position with party president Datuk Seri Dr Wan Azizah Wan Ismail chosen to replace him.
In 2007, Selangor Menteri Besar Khalid Ibrahim initiated a suit against Bank Islam seeking damages from the bank for alleged wrongful sale of his shares in Guthrie. Bank Islam then filed a counter suit to recover RM66.67 million claiming that Khalid’s failure to repay his loan. Twice the High Court ordered Khalid to pay the RM66.67 million in summary judgments obtained by Bank Islam. And then this year, Bank Islam withdrew its legal challenge to recover the RM66.67 million from Khalid to allow for an out of court settlement. Among the questions being raised is how Khalid has managed to get Bank Islam to agree to an out-of-court settlement. A point to note is that negotiations for the settlement are still in progress with a decision expected to be announced shortly.
Malaysia's BIMB Holdings will issue a RM1.7 billion ringgit Islamic bond to help raise the US$884 million (RM2.835 billion) it needs to buy the remaining 49% stake of Bank Islam. The 10-year sukuk will be sold to Tabung Haji, BIMB's biggest stakeholder, in a private placement. The bond is made available for the six months to May 27, 2014. IMB's plans were initially rejected by the central bank due to a proposal to secure the sukuk with shares of the company. BIMB in August announced plans to acquire the stake it does not own in Bank Islam held by Dubai Group and Tabung Haji.
Wong & Partners is advising Malaysian investment company BIMB Holdings on its proposed $885 million takeover of Bank Islam. The deal is subject to shareholder and regulatory approvals, and will be financed by a $1.8 billion capital raise.
Kuala Lumpur partners Munir Abdul Aziz and Wong Sue Wan are advising BIMB Holdings on the transaction, as well as the rights issue. Kuala Lumpur partner Mark Lim will act for Bank Islam as the lead arranger on the bond issuance. Zaid Ibrahim & Co. Kuala Lumpur partner Wan Marzimin and Zul Rafique & Partners Kuala Lumpur partner Lukman Sheriff Alias are acting as counsel to Dubai Financial Group and Lembaga Tabung Haji, respectively.
Dubai Financial Group (DFG) has agreed to divest of its 30.5% stake in Bank Islam to BIMB Holdings in Malaysia, in a deal worth $550m. BIMB Holdings currently owns 49% stake of Bank Islam and the recent acquisition, which completed on 31 July 2013, will enable it to strengthen its banking business in the country. Bank Islam manages a branch network of more than 127 offices. Following DFG's acquisition, the total assets of the lender rose from MYR14.6bn ($ 4.5bn) in 2006 to MYR37.4bn ($11.5bn) by the end of 2012. In June this year, the company divested its credit card operation The Dubai First to Abu Dhabi based First Gulf Bank (FGB) in a deal reached at $164m.
Malaysia's BIMB Holdings Bhd has received approval from the country's central bank to begin talks with Lembaga Tabung Haji for the latter's 18.5 percent stake in Bank Islam, the country's oldest Islamic bank. BIMB, which presently owns 51 percent of Bank Islam, is also in the process of acquiring the 30.5 percent stake held by Dubai Financial Group. If it acquires both stakes, BIMB will control 100 percent of Bank Islam. Negotiations between BIMB and Lembaga Tabung Haji will be completed by the end of the year. BIMB's chief executive officer Johan Abdullah told reporters in May that the valuation of the Dubai stake was already determined, although a complete proposal had not been filed and the amount has not been disclosed.
A group of mainly Malaysian academics and organizations published an advertisement in The Sun Daily asking Bank Islam Malaysia to lift its suspension of chief economist Azrul Azwar Ahmad Tajudin. According to the 135 professionals, politicians and academics and 59 organizations, Azrul had given a professional opinion based on economics and that his academic freedom should be respected.
Azrul Azwar Ahmad Tajuddin, Bank Islam’s recently suspended chief economist, is a member of the party PKR. However, PKR vice-president Mohd Azmin Ali said that Azrul’s party membership was irrelevant to his recent prediction that Pakatan Rakyat would win the 13th general election and that the analysis he gave is a professional opinion based on strong figures. However, Bank Islam released a statement yesterday saying the suspension was unrelated to Azrul’s personal political views.
Azrul Azwar Ahmad Tajudin today confirmed his suspension as chief economist of Bank Islam after his prediction of the likely results of Election 2013. The bank, however, moved to distance itself from Azrul Azwar and emphasized that the views expressed by him should not be linked or attributed to Bank Islam. It is unknown how long the suspension will last.
Suspended Bank Islam chief economist Azrul Azwar Ahmad Tajudin is facing disciplinary action after airing his views on political issues. Azrul himself classified the police’s intervention as an intimidation and harassment tactic whereas a member of parliament described it as a manifestation of the standard of governance in the local banking scene.
Bank Islam Malaysia Bhd announced the suspension of chief economist Azrul Azwar Ahmad Tajudin for allegedly breaching the bank’s internal policies. Azrul predicted at a forum in Singapore last week that Prime Minister Najib Razak will not win the upcoming general election in Malaysia. In a statement, the bank explained that the nature of the breaches would be established as soon as the investigations are completed. They further stressed that the suspension had no relation to Azrul's voicing his personal political views. It was reiteratively said that Azrul’s political views and his comments should are not to be associated with the bank.
Responsible for the smooth running of the day-to-day office operations of the branch which includes front line supervision and authorization of banking transactions.
To support the branch in all matters related to operations/sales/marketing and achievement of the branch deposit targets as defined by the Bank.
To maintain close relationship with customers, handle and resolve customers’ complaints and problems and consistently probe clients to identify and compromise for a "win-win“ situation and service fulfillment.
Plan, manage and oversee the Branch operations towards increasing operational efficiency and profit maximization.
Implement effective sales strategies to ensure achievement of business targets.
Lead and motivate staff to provide quality services at all times.
After legal proceedings were lobbed at Dubai Group over its US$10bil debt, the question arose what can be expected regarding the 30.5% interest it held in Bank Islam, where 51% of it belongs to BIMB. It is suggested that BIMB may acquire the stake from the Dubai state investment vehicle. In this way it will gain practically full control of Bank Islam. A notable fact is that BIMB as well as Bank Islam share a common shareholder pilgrim fund Lembaga Tabung Haji, which owns 51.76% of the former and 18.5% of the latter.
BIMB Holdings Bhd had RM62.84mil in net profit on revenue of RM502.26mil mainly because of higher operating results registered by the Islamic financial services group’s subsidiaries – Bank Islam Malaysia Bhd and Syarikat Takaful Malaysia Bhd.
Johan Abdullah, BIMB’s group managing director and chief executive officer, stated that growth in net income was encouraged by higher profit from the continued growth in financing, higher non-fund based income and improved asset quality in Bank Islam, as well as higher profit generated from takaful businesses.