IslamicFinance.de

The Government Savings Bank (GSB) will continue to focus on supporting government projects, including possible mergers with the ailing Islamic Bank of Thailand and SME Bank. The bank has targeted non-performing loans (NPLs) at 1.15% of total loans this year. Moreover, it aims to achieve an increase in lending this year of 8.5% or 142.8 billion baht. According to the bank's president and chief executive Worawit Chailimpamontri, mergers with the Islamic Bank and the SME Bank have made no progress, but will be pursued if the government needs GSB as a solution to fix the problem. GSB also plans to open 90 new branches nationwide this year, and to launch new services while upgrading information technology and staff skills.

The National Bank of Bahrain (NBB) is likely to acquire the loss-making Bahrain Islamic Bank (BisB) and give itself an Islamic finance arm. NBB’s chairman Farouk Almoayyed said that the acquisition is a business opportunity as his bank does not have an Islamic banking operation. They are confident that it will do well under their management, he added. Last year, BisB, the first Islamic bank in Bahrain, posted a net loss of BD36 million ($94.95 million). NBB however is looking strong and is keen to move into the Islamic market.

According to CIMB Equities Research, mergers and acquisitions (M&As) are still high on Affin Holdings's agenda to support its future growth. Hence, Affin is still planning to acquire Bank Muamalat. The banking group has submitted the offer and is waiting for the response from the owner of Bank Muamalat. It could also be interested in bidding for HwangDBS Investment Bank. CIMB Research said Affin is now reportedly less keen to purchase Bank Ina Perdana in Indonesia due to the 40% shareholding cap imposed by the Indonesian central bank.

Abu Dhabi-based Al Jaber Group eached a deal with its five main lenders to restructure about $4 billion of debt. The company agreed on terms, including loan repayments over five years. The debt, which includes both conventional and Islamic facilities, will pay annual interest of between 300 basis points, or 3 percentage points, to 400 basis points over the London Interbank Offered Rate. The deal will result in no loan losses. National Bank of Abu Dhabi PJSC, Abu Dhabi Commercial Bank PJSC (ADCB), Royal Bank of Scotland Group Plc and Union National Bank PJSC make up the coordinating committee with HSBC negotiating the new terms on behalf of about 30 lenders.

Noor Islamic Bank (Noor) announced the appointment of Narendra Swarup as Chief Risk Officer (CRO). In his role, Swarup is responsible for all the risk functions of the bank. He has more than 25 years of international experience in risk management in sovereign funds and international banks. In addition to his expertise in wholesale and investment banking, retail and private banking and asset management, he is regarded as an industry expert in overseeing credit and operational risk, as well as compliance and governance.

Jaiz Bank Plc has said it increased its authorised share capital to about N11 billion from only about N5 billion in January 2012 when it commenced operation. The bank is currently financing critical areas such as Agricultural, Small and Medium Scale Industries and Home Finance. General Manager, Business Development, Mallam Hassan Usman said the bank's plan is to expand to 25 branches before the end of the year. Moreover, Jaiz offers financing products and services like other conventional banks except these are devoid of interest. The services are available to all irrespective of race or religion, he added.

Bank Islam Malaysia has defended its recent move to suspend its chief economist Azrul Azwar Ahmad Tajuddin after he had predicted a narrow win for Pakatan Rakyat in the upcoming general election. However, a bank source said predictions on the elections are personal opinions that don't in anyway affect financial institutions like Bank Islam. Nevertheless, the bank discovered evidence of violations of the bank's internal policies that were so serious that warranted the bank to lodge a report with the commercial crime division of the police. Further internal investigations by the bank also revealed that Azrul had sent out series of emails relating to the bank's official documents from his office to third parties, including confidential minutes of the bank's board meeting. Azrul is due to appear before the bank's disciplinary board in March.

Kuwait Finance House (KFH) Turkey maintained its growth in 2012 and increased its profits to TL250m, 28% increase compared to 2011, according to KFH CEO and KFH - Turkey Chairman Mohammed Sulaiman Al-Omar. Moreover, the bank increased its assets by 27% to TL19bn and its loans by 14% to TL12bn and capital adequacy ratio stood at about 14%. He added that the results achieved were in accordance with the plans, targeted shares, development projects and restructuring programme. The bank also targeted markets in the neighboring countries of Turkey and enhance cooperation and partnership relations with many economic and commercial activities, as well as presenting new products.

Great Eastern Takaful Sdn Bhd (Great Eastern Takaful) has appointed Zafri Abdul Halim as the CEO, effective from March 1, 2013. Before, he was the company’s chief financial officer. Zafri holds a Master of Science in Project Management from George Washington University and a Bachelors Degree in Accountancy in addition to being a member of Malaysian Institute of Accountant and a certified Chartered Accountant. He said, Great Eastern Takaful will pursue its main strategies in penetrating the local market with its dual agency approach and direct agency under Great Eastern Takaful Own Agency (GOA).

Aljazira Capital Co., the investment arm of Saudi Arabia’s Bank Al-Jazira (BJAZ), hired Samer Al-Jaouni as head of institutional brokerage and assistant general manager. He will start at the bank after regulatory approval. Aljazira Capital is one of about 30 brokerages in Saudi Arabia.

Masraf Al Rayan got the approval by its extra ordinary general assembly to acquire an important share in a commercial bank in Libya. It now needs the nod of the Qatari and Libyan authorities before it can be a reality. The acquisition of the anonymous Libyan bank is part of the Masraf Al Rayan’s plan to pursue diverse investment opportunities. According to director Dr Hussain Ali al-Abdulla of Al Rayan, the Libyan bank is poised to be converted into an Islamic bank. Moreover, Masraf Al Rayan continues its efforts to acquire a large share in Islamic Bank of Britain.

The real estate developer Nakheel on Tuesday announced that it paid an additional Dh206 million to its creditors as part of its debt restructuring. The funds, due to be paid at the end of February 2013 in accordance with the developer’s financial restructuring commitments, bring the total loan interest and trade creditor sukuk profit paid to Dh923 million since restructuring. According to Nakheel chairman Ali Rashid Lootah, The company is in a good financial position and has about $600 million of cash on its balance sheet.

Seera Investment Bank yesterday reported a total income of more than $12 million for last year. Net profit for the year was approximately $7m. Chief executive Abdulla Janahi said Seera's existing investments continued to generate income for the bank, and income realised during the year was primarily from recurring revenues from these investments including lease rentals and investment and management fees. Market conditions remain challenging and a quick turnaround appears unlikely he added.

Noor Islamic Bank has announced the appointment of Narendra Swarup as Chief Risk Officer (CRO). Swarup will be responsible for all the risk functions of the bank. These include credit, market, operations as well as compliance and governing information security, protecting against fraud and guarding intellectual property through developing internal controls. Swarup brings with him more than 25 years of international experience in risk management in sovereign funds and international banks.

Qatar Islamic Bank (QIB) has charted out a five-year global investments strategy to help anchor the Bank’s position as an Islamic financial institution of international stature. According to the Bank Chairman Sheikh Jassim bin Hamad bin Jassim bin Jabor Al Thani, QIB seeks innovation and diversification of its credit portfolio, support for small and medium enterprises, expansion of foreign investments, and maximisation of total profits. QIB recorded a net profit of QR1.24bn for the year 2012. Growth was also registered in other financial positions, such as total assets, customer deposits and total income.

Ithmaar Bank has formally concluded a merger with First Leasing Bank (FLB), which involved a swap of four Ithmaar Bank shares for each FLB share. The merger enhances Ithmaar's capital base as well as its capital adequacy ratios. It also improves Ithmaar shareholders' profile. According to Ithmaar Bank chief executive Mohammed Bucheerei, the merger will consolidate Ithmaar Bank's position as an Islamic retail bank and create powerful new synergies, improving efficiencies and reducing costs. The necessary procedures in co-ordination with the Bahrain Bourse to merge the registrar of FLB shareholders to the registrar of Ithmaar shareholders are expected to be completed shortly.

The Islamic Bank of Thailand has experienced deposit runs due to worries about its financial stability. The state-controlled bank reported some 5 billion baht worth of withdrawals over the past two weeks following reports of its weakening financial status. The government is now to move quickly to reassure the public the bank will have full government support. Prawat Uttamote, a Pheu Thai party list MP and deputy chairman of the border affairs committee said the bank's restructuring plan estimates that 50% of the bad loans or 12 billion can be recouped within the next two years. Therefore, the bank is in no imminent danger, he added. Prime Minister Yingluck Shinawatra separately stressed that deposits in the banking system are fully protected under the Deposit Protection Agency.

Gulf Finance House (GFH) yesterday reported a net profit of $10.03 million last year as compared to $0.38m in 2011. The profitability is attributed to profitable investments as well as significant restructuring, including the Leeds United football club investment and others. Operating profit before provisions for the year saw an increase of 140 per cent to $20.43m. Additionally, the bank saw a 31pc year-on-year reduction in operating costs mainly due to streamlined operations and reduced facilities. Moreover, GFH settled more than $100m of debt, which will now all mature gradually by 2018 and therefore the bank has been in a stronger liquidity position.

Bahrain-based Al Baraka Banking Group B.S.C. (ABG) announced that it has achieved a net income of $235m in 2012, an increase of 11% on the income achieved in 2011. Other financial position items witnessed good increases as well, including total assets (11%), total financing and investments (21%), deposits including equity of investment account-holders (12%) and total equity (9%). The financial statements of the Group for 2012 showed that the continued expansion in business reflected positively on income, with total operating income of $880m in 2012, an increase of 21% over 2011. According to H.E Sheikh Saleh Abdullah Kamel, Chairman of Al Baraka Banking Group, the success is based on its geographic expansion programs and branch network as well as strong financial means, human resources and technical capabilities. Furthermore, he emphasized the importance of ABG's commitment to the Islamic banking model.

Standard Chartered Saadiq Bhd (Saadiq), a wholly-owned Islamic bank subsidiary of Standard Chartered Bank Malaysia, launched its first branch in the state Sarawak. Saadiq chief executive officer (CEO) Wasim Saifi opened the branch located in Kuching, which was witnessed by Standard Chartered Malaysia consumer banking country head Sonia Wedrychowicz and government officials as well as the bank’s customers, partners and staff. Saadiq stated that the new branch opened seven days a week, extending its operations to weekends in order to improve customer access to the bank’s facilities and services.