IslamicFinance.de

Qatar-based Barwa Bank has reported half-year profits of QR303.6mn, up 85% from the QR162.9mn recorded in the same period last year. Return on equity increased from 6.6% to 11%, with earnings per share rising from QR0.55 to QR1.01 on the back of a 10% increase in total assets to QR27.8bn. The highlight of the first half has been the high level of activity in corporate banking as major infrastructure projects have started to bear fruit. Also, contributing ware the strong performances in the bank’s treasury and trading businesses. Barwa Bank has also seen selective expansion in its retail footprint with two new high-profile branches nearing commissioning and good response to its special outlets located in the Ministry of Interior and the Navy.

Ajman Bank partnered with Al Al Ihsan Charity Association as a main sponsor in its 'Ramadan Aman' Campaign. The objective behind this effort is to prevent drivers from speeding during the Ramadan rush hour before Maghreb prayer that often increases the risk of accidents. As part of the campaign Ajman Bank employees will serve as an active volunteer distributing some of the 100,000 iftar kits through the Holy Month in the emirates of Dubai, Sharjah, Ajman, Umm Al-Quwain and Ras Al Khaimah at selected areas. Every year there is a sharp rise in road accidents in the UAE during Ramadan. A considerably large number of these occur shortly before iftar primarily due to speeding.

Deadlines for Qatar-based Islamic bank Masraf to announce a firm intention to make an offer for Islamic Bank of Britian have been extended to the end of August. The latest deadline again lapsed as talks that have been ongoing since late 2012 continue. The bank has struggled to make a profit in recent years and at the end of 2012 bosses revealed the lender would look at ways to offer more products. In 2009 the bank attempted to boost business by targeting mortgage advisers, launching a website providing resources enabling them to re-sell the Islamic Bank of Britain’s range of Sharia-compliant home purchase plans and commercial property finance products. Yet in 2011 the bank reported a loss of £8.9m despite income from home purchase plans increasing 17.9 per cent to £2.3m.

Barwa Bank has signed a cooperation agreement with Qatar Charity to provide QR500,000 for its Ramadan projects in the country. The deal was signed by Steve Troop, Chief Executive Officer of Barwa Bank, and Yousef Al Kuwari, Qatar Charity Executive Chairman, at the charity headquarters. Troop said that Barwa Bank aims to support projects which provide assistance to the needy in the Qatari community in various ways, including forging partnerships with charities such as Qatar Charity. One of Qatar Charity’s projects is Al Baraha which has been extended from 10 days to one month. Around 24,000 people will benefit from the QR950,000 project during the holy month.

Dubai Islamic Bank (DIB) has appointed Adnan Chilwan as chief executive. Chilwan, who was previously deputy CEO at the bank, replaces Abdullah Al Hamli who was named managing director. The management reshuffle at DIB comes when the bank is preparing for renewed growth, after it set aside about 5 billion dirhams ($1.36 billion) against bad loans following the 2009-2010 crash of Dubai's real estate market. According to Chilwan and Al Hamli, the bank has dealt with much of its balance sheet weakness and should see profits for 2013 grow in the double digits, allowing it to eye acquisitions in new markets in Asia. DIB, which is in the process of acquiring Islamic mortgage lender Tamweel , became the second Gulf bank to issue a hybrid perpetual sukuk when it priced in March a $1 billion Islamic bond to boost its Tier 1 capital ratio.

General Manager of International Banking and Acting Chief Investment Officer at Kuwait Finance House KFH Shaheen Al-Ghanim has announced the emerging KFH Investment Company, previously named Liquidity House. He added that this company will be KFH's main investment arm locally, regionally, and globally. Renaming Liquidity House to KFH Investment is one of the results of the new investment strategy, which is considered to be part of KFH's development and restructuring plan. All of KFH investment holdings and activities will be consolidated and supervised by KFH Investment Company. Furthermore, Al-Ghanim revealed that this company will survive Liquidity Management House (LMH). He noted that the Shareholders General Assembly of LMH had been convened last Thursday and approved changing the name of the company.

On July 1, Abu Dhabi Islamic Bank (ADIB) launched BusinessPulse, a portal aimed at providing advice and support to small and medium-sized businesses in the UAE. www.businesspulse.ae has three main sections: ‘Ignite’ is all about seeding the idea and kick starting the business plan; ‘Enrich’ is about funding the plan and ‘Grow’ deals with facilitating growth and future expansion. A key feature of the portal is a comprehensive library of case studies and videos from successful entrepreneurs. It also features a networking section that will enable SMEs to find the right business partners and contacts. Moreover, visitors can apply for a financing facility of up to AED 2 million through the portal and receive funding advice through interactions with ADIB’s Business banking team. BusinessPulse will be supported by a series of events and seminars, offering SMEs an opportunity to showcase their success stories and learn from others.

The shift in global banking is not a trend, and the challenge for all of us is to bridge the gap in financial practice and seize the opportunities that lie ahead, bringing ethics back into finance.

Thomson Reuters and Abu Dhabi Islamic Bank (ADIB) are partnering to launch the world’s first Ethical Finance Innovation Challenge and Awards (EFICA). In the dawn of a new economic world, these awards are designed to inspire and recognise a fresh way of thinking by promoting some of the most dynamic, innovative ideas and solutions around integrity and growth.

The Islamic Development Bank's board of executive directors has approved new finances worth $790 million to carry out different projects in member countries. The board agreed to give $220 million to the renewable energy program of the Development Bank of Turkey and $200 million for an electricity project in Damietta, Egypt. The new finances approved by the board will also benefit Morocco, Uganda, Pakistan, Burkina Faso, Mozambique, Yemen, Togo, Jordan and Mali. It has also agreed to provide grants to educational projects for Muslim communities in Kenya, Nepal and Congo. Moreover, the board discussed the decision taken by IDB governors to increase the bank's capital from $45 billion to $150 billion and arrangements to celebrate the bank's 40th anniversary.

Middle Eastern debt issuance surged 40 per cent in the first half of 2013, the strongest period on record, according to new data released by Thomson Reuters. Debt raised reached $26bn, including $20.8bn of investment grade corporate debt in the first two quarters of the year, accounting for around 80 per cent of debt capital markets activity. In a further sign of a brighter outlook for the financial sector, debt capital markets underwriting earned banks $102m, more than double the income of the same period last year, and the best first-half performance ever, the report said.

Mr. Abdul Razak Abdulla Al-Qassim - Chairman of the Board of Directors announced that the Board has approved the Financial Statements for the period ended on 30th June 2013. The Bank registered BD2.4m as net profit for the first half of the year after deducting BD5.7m as provisions compared to a net loss of BD15.8m for the same period last year. The Board has taken provisions of BD5.7m as a precautionary step against any unforeseeable deterioration in asset values compared to BD15.9m for the same period last year. Net operating profit for the three months of the second quarter registered BD3mn compared with BD1.4m for the same period in 2012. These results are considered good considering the prevailing economic circumstances.

Dubai Duty Free (DDF) has successfully concluded the repricing of its $1.75bn debut facility arranged in 2012. The Repricing was well received by the market with support from its existing syndicate of international, regional and local banks, with several institutions also offering to increase their commitments as well as accepting the lower pricing. However, no new commitments needed to be allocated. Citibank, N.A., London Branch acted as sole co-ordinator and bookrunner for the Company in connection with this Transaction. DDF's goal is to increase sales this year to $1.8bn to grow sales to $3bn within five years.

The Bahrain-based investment firm Tadhamon Capital acquired two assets within its prevalent Social Infrastructure Platform in the United Kingdom in the second quarter of 2013. The two transactions are valued at approximately £32 million (US$50 million) which brings the total value of the assets held under the Platform to £123 million (US$190 million). The first transaction was established between Tadhamon Capital and Maria Mallaband Care Group Ltd (MMCG) to forward fund the development of the £6.7 million 53-bed care homes in Gerrards Cross, Buckinghamshire (west of London). The second transaction builds on the Platform's existing strategic relation with McLaren Properties by arranging the acquisition of 251-bed Brunswick House student accommodation scheme in Cambridge at a value of £26 million.

The United Arab Emirates central bank has asked local commercial banks in the country to provide details of their financial exposure to Turkey by Tuesday. The aim is reportedly to review the investments. The UAE’s financial ties to Turkey have expanded in recent years because Gulf banks are looking to diversify out of the region’s oil-focused economy and are hamstrung by a lack of potential acquisitions at home. UAE banks have also increased their exposure to Turkish debt, particularly sukuk. Sales of Turkish sukuk to Gulf investors may increase further as Turkey expands its offerings. A new regulation limiting exposure to Turkey is not expected despite the UAE's central bank's action unless the data compiled exceeded the norm.

Abdulaziz AlSaghyir Holding has launched a center specialized in social responsibility. The aim of Namaa Center for Social Responsibility (NCSR) is to support social services, innovate communal programs and promoting scientific studies and research of this area. Moreover, the center seeks to build strategic partnerships with different partners to support the center'sactivities in the future. The NCSR also represents the strategic arm of Abdulaziz AlSaghyir Holding in planning,development and implementing communal programs. NCSR's long-term strategies and plans include the educational, social and training fields. The planning of a specialized program of leadership for university students from both genders has already been completed through strategic central relationships with the high education and universities. The program is based on thinking, experiment and building to advance the personality and behavior.

Saudi lender Bank AlJazira has reported a 29% jump in its net income for the second quarter to SR167m, compared with SR129m for the same quarter last year. Net profit during the first six months of 2013 grew 15% to SR312m from SR272m for the same period last year. The bank's total assets as of June 30, 2013 stood at SR56.22bn against SR47.12bn for the same period in the previous year, an increase of 19%.

Nakheel made a net profit of AED1.2 billion (US$327 million) in H1 2013, a 57% increase on a net profit of AED767 million reported for H1 2012. Revenues for H1 2013 stood at AED4.23 billion, up 36% on revenues of AED3.1 billion noted in H1 2012. The results for H1 2013 reflect the on-going support of the Government of Dubai and the commitment by Nakheel to delivering the post restructuring plan. They also demonstrate the continuing growth and strengthening of the real estate market in Dubai, and the return of investor confidence and trust in Nakheel and its projects. Besides several Nakheel projects under development, the company is evaluating a number of additional projects. Moreover, Nakheel focuses on meeting its restructuring commitments to its stakeholders by making interest payments to bank lenders and profit payments to its sukuk holders.

Abu Dhabi Islamic Bank (ADIB) has closed a AED 1.32 billion (US$360 million) Syndicated Islamic Facility for Abu Dhabi-based Gulf Marine Services (GMS). ADIB acted as the Mandated Lead Arranger, Sole Underwriter, Sole Bookrunner, Investment and Security Agent for the facility. The deal was tailored by ADIB to meet GMS’ specific financing needs, including re-financing existing facilities and providing finance for the acquisition of 2 additional vessels. The financing will also help GMS achieve its plan to further improve and expand its fleet. The facility was very well received, as evidenced by the strong demand from local and regional banks which resulted in it being 2 times oversubscribed by 10 local and regional banks. White & Case acted as the legal counsel to the financiers, while Gibson Dunn acted on behalf of GMS.

The Deloitte Islamic Finance Knowledge Center (IFKC) in the Middle East has signed an MOU of a collaborative training initiative with the Islamic Research & Training Institute (IRTI). This collaboration aims to develop industry-based training programs for the industry of Islamic Finance and Takaful in order to streamline professional education and capacity building. Four key objectives are identified to provide 'Continued Professional Development' and Executive Education programs for the Islamic Finance and Takaful industry stakeholders. First, the collaborative approach amongst industry stakeholders will be strengthened. Moreover, high quality practitioner training and support to industry stakeholders will be provided. Another goal is to assist clients, developing talent management strategies and competency-based training approach in Islamic finance practice. The forth aim is to set the standards of professional excellence and good practices of leadership development in Islamic finance.

A report issued by KFH-Research states that the global sukuk market has shown resilience this year given the volatility in global bond markets as market players react to positive economic growth prospects as well as concerns over monetary policy in the US. The report mentions that despite rising yields across the board, sukuk issuances have kept up momentum. On a monthly basis, the primary sukuk market in 2013 has outpaced the previous year every month since January 2013 except June 2013. Moreover, the report states that Malaysia held the largest market share of the primary market in 1H13 primarily due to the central bank issuances. The secondary sukuk market in Malaysia remained the largest, followed by Saudi Arabia, the UAE and Qatar. Growth in the secondary market over the first half of the year was driven by Turkey. The prospects for the sukuk market are expected to remain bright.