IslamicFinance.de

In NCB Capital's (NCBC) view, the 14.7% YoY growth in Albilad’s net income is the result of an increase in NSCI income and fee and other Income. Although the bank’s total operating income came broadly in-line with NCBC's estimate, lower than expected operating expenses including provisions resulted in net income that was 9.4% better than the estimate. Albilad’s NSCI grew 10.7% YoY to SR228mn, in-line with the estimates, led by a 25.3% YoY growth in net loans. Albilad’s investment base also expanded about 8 times which enabled the strong NSCI growth. However, despite the shift from cash towards higher yielding assets, NCBC's calculation suggest that NIMs declined 4bps YoY and 9bps QoQ. This implies that the front loan rates have been declining by a significant level. Albilad’s total operating expenses including provisions grew 5.0% YoY, but came-in 2.7% below the estimates, enabling the 14.7% YoY growth in profits.

Capital Intelligence (CI) has affirmed the ratings of Saudi Bank ALJazira (BAJ). The Financial Strength Rating (FSR) is affirmed at 'BBB', supported by sound liquidity, strong customer deposit growth and improved profitability. For the same reasons, the Long-Term Foreign Currency Rating (FCR) is affirmed at 'BBB+' and the Short-Term Foreign Currency Rating at 'A2'. Ratings are constrained by the high non-performing loan (NPL) ratio, the high cost structure and a resultant low profitability, and a high level of deposit concentration. Both the FSR and the FCR continue to carry a 'Stable' Outlook. In light of the Bank's position in the Saudi banking sector, official financial support is expected to be forthcoming in the event it is needed. Consequently, the Support Level remains at '2'.

Depressed initial public offering (IPO) activity in the Gulf Cooperation Council (GCC) continued into the second quarter (Q2) of 2013 with three new listings raising a total of only $ 48 million. This compared to two IPOs in Q1, 2013 raising an aggregate of $ 337 million, representing an 86 percent decrease in total value raised. The average offering value dropped 94 percent this quarter compared to the same quarter last year where four IPOs were witnessed raising a total of $ 1.1 billion. While the value of offerings significantly dropped this quarter, the number of offerings remained relatively stable at 3 IPOs. In contrast, Europe’s IPO markets have continued to gain momentum in Q2, building on the successful start to the year, with $ 6.8 billion being raised, a 58 percent increase on the $ 4.3 billion raised in the first quarter of 2013.

Al Rajhi Bank will reportedly distribute dividends worth SR2.25bn ($599.9m) for the first six months of 2013. This is equivalent to 1.5 riyals per share. The amount is slightly higher than the 1.25 riyals per share which the bank paid last year. Separately, Banque Saudi Fransi said it would distribute dividends worth SR361.6m ($96.4m) for the first six months of the year. This equates to 0.4 riyals per share. In 2012, Banque Saudi Fransi paid a full-year dividend of 0.8 riyals per share, indicating that this year's payment is in line with that made last year. Al Rajhi is expected to release its second-quarter earnings around July 16.

Islamic International Rating Agency (IIRA) has assigned a national scale rating of A+/A-1 (SR) to Bank AlJazira. On the international scale, IIRA has assigned a foreign currency and local currency rating of A-/A-2. Outlook on the rating is ‘stable’. The fiduciary score has been assessed in the range of ‘71-75’, reflecting adequate fiduciary standards. The assigned credit ratings incorporate the bank’s improving asset quality and standalone profitability as well as an adequate liquidity profile and capitalization levels. However, BAJ, like other banks in Saudi Arabia, remains sensitive to concentration related risks. While large single exposures are likely to persist in the portfolio, segment-wise broadening will overtime reduce its possible impact, in case of impairment in large financings.

Islamic International Rating Agency (IIRA) has assigned a national scale rating of A+/A-1 to Bank AlJazira (BAJ). On the international scale, IIRA has assigned a foreign currency and local currency rating of A-/A-2. Outlook on the rating is 'Stable'. The fiduciary score has been assessed in the range of '71-75', reflecting adequate fiduciary standards. BAJ has grown at a CAGR of 19% in terms of asset size over the last three years through continuous expansion in branches and business acquisition. Moreover, the bank has broadened its business base with an enhanced presence in the corporate segment and a growing exposure towards the retail market. However, it remains sensitive to concentration related risks. The bank has a well developed corporate governance framework in place with effectively functioning board and management level committees.

Fitch Ratings has affirmed the Islamic Development Bank's (IDB) Long-term Issuer Default Rating (IDR) at 'AAA' with a Stable Outlook and Short-term IDR at 'F1+'. IDB's ratings are underpinned by strong intrinsic features, primarily excellent capitalisation. The ratio of equity to assets has remained above 60% since inception. The ratio of debt to equity is low, at 57.5%. The bank also maintains a comfortable level of liquid assets, which more than fully covered its short-term liabilities. Moreover, credit risk is moderate. Fitch deems other risks like credit risk on treasury assets, interest rate risk and foreign exchange risk as well as the bank's risk on equity investments under control. Shareholders' support is also supportive of the rating since their willingness to support the bank is expected to remain strong.

According to a new special report published by Moody's Investors Service, the Saudi sukuk market will continue to grow over the next 12-18 months. Strong sukuk issuance has continued in 2013, with SR 11.6 billion already issued during Q1, leading the rating agency to expect that 2013 sukuk issuance will surpass 2012 levels. With limited investment options available, IFIs tend to maintain higher levels of very low-yielding cash and Islamic interbank placements. A larger sukuk market would facilitate liquidity management through a pool of higher-yielding Shariah-compliant securities and offer a profitability boost to local IFIs. Moody's says that the record issuance is being driven by strong investor demand; increased financing opportunities to fund the country's large-scale infrastructure projects; and a developing yield curve following the sovereign-guaranteed benchmark sukuk issuance by the General Authority of Civil Aviation in early 2012.

The National Commercial Bank (NCB) recently signed an agreement with King Khalid Foundation to give financial donations to the best charity foundations that were able present a plan of a charity project. The aim of this initiative is to support training programs and build the capabilities of charity foundations’ staff to promote efficiency, effectiveness and performance, which will be positively reflected on the society. The list of wining projects included Qualifying the Adolescents project presented by Charity Society for Marriage & Family Care in Baha, Rehabilitation of Visually Impaired project presented by Ebsar Foundation, My Skill is Enough project presented by Albir Society Jeddah, and Qualifying the Job Seekers from Ensan Committee project presented by Charity Committee for Orphans Care (Ensan), Riyadh. Each foundation received a financial donation at the value of SR 200,000.

Alkhabeer Capital, a leading asset management and investment banking firm headquartered in Jeddah, Saudi Arabia, announced the appointment of Tariq Hayat as Chief Corporate Communication Officer. Tariq joins Alkhabeer Capital from Arcapita Bank where he had worked since 2003 in senior corporate communications and management roles before being appointed as Arcapita’s Head of Corporate Communications. His key responsibilities will be to direct Alkhabeer’s internal and external corporate communication strategies, in addition to delivering specific stakeholder engagement initiatives to support the company’s accelerated growth.

Saudi Arabia’s General Authority of Civil Aviation hired three banks for a local-currency sukuk. The Saudi Arabian affiliate of HSBC Holdings Plc (HSBA), National Commercial Bank’s investment banking unit and Standard Chartered Plc will manage the sukuk sale. NCB Capital and Standard Chartered bid jointly for the mandate. It was not specified how much the authority sought to raise, neither was the timing of the sale. GACA said last year it plans to issue a second tranche of notes to fund an airport expansion in the Saudi capital, Riyadh. The company sold Islamic debt last year at 2.5 percent and used proceeds to finance an airport expansion in the Red Sea port city of Jeddah.

The Islamic Development Bank, in collaboration with the Abdul Latif Jameel Poverty Action Lab (J-PAL) of Massachusetts Institute of Technology (MIT), USA organized a high-level training course on Impact Evaluation of Development Programs taking place at the IDB headquarters from 8 to 12 June 2013. The training program was delivered by renowned experts in the field. Impact evaluation seeks to respond to the growing demand of donors and beneficiaries for measurable results on development interventions carried out by development banking institutions around the world. The training supports IDB's drive to improve the quality of its interventions, and showcase results on the ground. The Islamic Solidarity Fund for Development (ISFD) coordinated the training program in collaboration with the Operations Policy and Services Department (OPSD) and the Group Operations Evaluation Department (GOED) of IDB.

Current Company Logo
Senior Risk Management Specialist (Credit Risk)

Islamic Development Bank - in Jeddah (Saudi Arabia)
Job Description

The candidate should be able to:

Participate in the development and update of credit risk management guidelines, policies, procedures, methodologies, and models, which have direct impact on risk management function.
Undertake the country risk assessment exercise including the application of associated quantitative and qualitative scoring model, and preparation of country risk report.
Undertake risk assessment of financial/investment operations related to projects, corporates, financial institutions, equities, funds, etc. including the application of associated quantitative and qualitative scoring models, and independent review of due diligence, financing terms and conditions, risk mitigation, security package, and assignment of exposure limits.
Participate in due diligence mission related to financing and investment operations.
Monitor adherence to guidelines and policies at the Group level, report on deviation, and recommend on corrective actions.

The headquarters of the General Secretariat of the Organisation of Islamic Cooperation in Jeddah hosts, on 10–11 June 2013, a workshop entitled: "Humanitarian Action in Today’s World: reality and challenges in the context of Islamic jurisprudence and international humanitarian law". This workshop is attended by scholars and experts of Islamic jurisprudence and international humanitarian law, all together more than 20 organisations and 80 participants. It covers topics relating to the rights of victims of armed conflicts and the protection of humanitarian workers. It also features specific presentations on experiences and practices in the area of protection. The workshop aims to provide knowledge-based assistance to those working in the humanitarian field, develop their skills, and promote their awareness and knowledge of the principles of humanitarian action in light of Islamic jurisprudence and international humanitarian law.

Goldman Sachs Group Inc. (GS) led its first sukuk in more than three years after helping a Saudi property developer raise $450 million. The bank was a lead arranger on Dar Al Arkan Real Estate Development Co. (ALARKAN)’s sukuk on May 21, reforging links with the Riyadh-based real estate company after helping arrange the sale of its $450 million five-year bonds in February 2010. The New York-based bank is seeking to catch up with U.S. competitors as demand accelerates for securities that conform to Islamic principles. Increased competition in the industry could work in banks’ favor, as lower fees increase the chances borrowers will come to market and more banks means a greater profile for the Islamic industry.

Standard & Poor's Ratings Services has revised the outlook on the long-term sovereign credit ratings on the Kingdom of Saudi Arabia from stable to positive. At the same time, the long- and short-term foreign and local currency sovereign credit ratings were affirmed at 'AA-/A-1+'. The transfer & convertibility (T&C) assessment for Saudi Arabia is unchanged at 'AA+'. Saudi Arabia can be upgraded during the next 24 months if economic growth remains strong, since continued growth helps to reduce country's social challenges, including unemployment, and enhance productivity and competitiveness. The ratings are constrained by S&P's view that Saudi Arabia's political institutions are at early stages of development. Moreover, given the Saudi riyal's peg to the US dollar, monetary policy flexibility is viewed as limited.

Saudi Fransi Capital has launched its new fund, the Saudi Fransi Real Estate Fund. The new fund seeks to achieve capital growth, by developing lands and real estate projects, along with the possibility of generating income stream by acquiring existing real estate in Saudi Arabia. It's a closed -- ended Shariah-compliant fund, with duration of four years from the day of closing, but may be extended for two successive periods of one year. The subscription period started on May 18 and will end on July 3. SFC signed a memorandum of understanding with a leading and renowned real estate developer, to be the principal real estate developer of the fund; the fund may assign other developers if needed. Yasir bin Othman Al-Rumayyan, CEO of SFC, said that the fund provides the opportunity for capital growth and generating income; since it generates cash during the development phase.

Dar Al Arkan's $450m 5.75% five year sukuk bucked the recent trend by performing well in the secondary market after pricing on Tuesday. The paper traded up to 100.75 bid on Wednesday, having been priced at 99.47. And despite the general market sell-off on Thursday, the notes were still quoted at 100.25 by the close.

Guidance Investments (GI) has launched a RM150 million Shariah-compliant investment fund for equipment leasing for the Saudi Arabian market in partnership with Lembaga Tabung Haji (TH). This Tabung Haji acted as the capital provider, while the US-based ATEL Capital Group, the equipment leasing company is to provide the machineries for the Saudi market. TH CIO Abd Kadir Sahlan said that his company has committed a total of RM150 million in the private equity fund in support of ATEL in this venture. The funds will be disbursed in phases over the next two to three years, depending on the deployment of the portfolio in the Saudi market. At the same time, Guidance Investments has formally launched its operations in Malaysia with the opening of its headquarters in Kuala Lumpur.

In the Middle East CSR is largely characterised by a charity mindset, easily regarded as archaic by outsiders. However, the region’s CSR focus on charity is explained by the general perception that CSR is a corporate form of Zakat, one of Islam’s five pillars, which stipulates that Muslims give a certain percentage of their wealth in charity. Saudi companies primarily focus their CSR activities on programmes that have little to do with these companies’ core activities. Some present aid to the handicapped while others support and encourage young Saudi citizens to join the labour force. Some concerns, however, receive little or no attention, such as environmental issues, human rights of guest workers or the equal treatment of women in the workplace. The CSR focus on charity is deeply rooted in religious tradition. Therefore, CSR in the Middle East will develop along its own path.