IslamicFinance.de

State Bank of Pakistan and other banks engaged in Islamic Banking have sought media support in mobilizing and inclusion of more people from all sections of the society in the source banking system, especially the agriculture, micro-finance and housing sectors.. In order to create awareness and better understanding among the media people, a two-day workshop on 'Islamic Banking' has been organised for them. The Director of SBP's Islamic Banking Department, Saleemullah, said the print and electronic media is the best tool for opinion making and mobilizing the people towards Islamic banking, Besides establishing riba-free economy, however, the corruption in the society must end. Otherwise, the poverty can not be eliminated.

After gaining the leadership position in Shariah-based retail banking, International Islamic has its eyes firmly set on improving its presence in corporate financing, said CEO Abdulbasit A al-Shaibei. Corporate financing is expected to have an exponential growth in Qatar, particularly in the next two to three years. In line with this, the Doha-headquartered lender has activated its trade finance department. Besides, the bank is an active partner with Qatar Development Bank in its initiative to help SMEs flourish. Registering growth across various portfolios of its core business, International Islamic posted a full-year net profit of QR750mn in 2013, up 10.5% on 2012. The bank earned a total revenue of QR1.5bn in 2013. Assets totalled QR34.4bn last year, indicating a 20.5% growth compared to 2012.

Istanbul-based participation bank Kuveyt Türk, which raised its profit by 20 percent to 300 million Turkish Liras last year, announced ambitious plans for 2014. The lender is aiming to reach 320 branches across Turkey, opening a branch in Qatar and establishing a bank in Germany in 2014. In addition to this, it is planning to issue a Malaysian ringgit- or dollar-denominated sukuk in Malaysia, according to Kuveyt Türk CEO Ufuk Uyan. The Istanbul-based bank has applied to Germany’s Federal Financial Supervisory Authority (BaFin) in order to carry out its loan and deposit operations in Germany in October. The bank has opened 47 branches within Turkey, extending the number of its branches operating domestically and abroad to 267.

The former Governor of the Central Bank of Nigeria Mallam Sanusi Lamido Sanusi claimed that 20 billion US dollars had gone missing from the coffers of the NNPC. Two weeks later, he was been suspended and relieved of his duties. As a next step, he will probably be subjected to a formal probe and the EFCC will be called in to investigate his tenure of office. Femi Fani Kayode commends his immense courage for speaking out and exposing the monuemental corruption in the government that he once served and that has now decided that they no longer require his services. Kayode is convinced that if you speak truth to power and you take on the system, the system will fight back and they will attempt to destroy you and all that is yours. Yet at the end of the day, the only road that is worth taking is the road of righteousness and truth, and it is the only one that leads to lasting honour and glory.

Nigeria's central bank governor Lamido Sanusi has been suspended by the president for "financial recklessness and misconduct". Mr Sanusi caused shockwaves in Nigeria when he alleged that $20bn (£12bn) in oil revenue had gone missing. He said he would challenge his suspension in order to preserve the central bank's independence. Meanwhile, foreign exchange, bond and money markets have stopped trading because of uncertainty caused by the move. The president, however, does not have the power to sack the central bank governor - only the National Assembly can do this. Although his term in office was due to end in June, the decision to suspend him now is still highly significant. Many Nigerians will think the president has chosen to suspend the whistleblower rather than focus on stopping fraud.

Islamic banking assets in Egypt are expected to reach around EGP 128 billion (USD 18.4 billion) in 2014, realizing an average growth of 10% to 12%. Islamic banking assets were valued at EGP 114 billion in 2013, up 11% from the previous year. Islamic financing extended by banks rose 6% to EGP 76.4 billion in 2013 while deposits grew by 13% to EGP 103 billion in the same period. The Islamic banking sector accounts for 7% of total banking assets in Egypt. Meanwhile, investors from Saudi Arabia are reportedly evaluating various investment opportunities in Egypt, including in the industrial and agricultural sectors, but are waiting for the political and security situation to stabilize before making a move.

AmIslamic Bank, subsidiary of AMMB Holdings, has received the necessary approvals from both Bank Negara Malaysia and the Securities Commission of Malaysia to set up a subordinated Sukuk Murabahah programme with a value of RM3bn. The subordinated Sukuk Murabahah programme has a tenor of up to 30 years from the date of issue and each tranche will have a tenor of five years minimum. In a market filing the issuer said that RAM Rating Services had assigned a preliminary long-term rating of 'AA3' to the Subordinated Sukuk Murabahah under the programme.

Organised in conjunction with the Harvard Islamic Finance Project, Farmida Bi talks on Islamic finance in the Western world. Farmida Bi is partner and European head of Islamic Finance, Norton Rose Fulbright LLP. Dr Paul Mills is senior economist at International Monetary Finance, London.

Recorded on 12 February 2014 in New Theatre, East Building.

Bank Islam Malaysia (Bank Islam) plans to open 141 branches nationwide by year-end. Managing director Datuk Seri Zukri Samat said the new branches will be opened at Jalan Chan Sow Lin in Kuala Lumpur; Bandar Enstek in Negeri Sembilan, Bukit Ibai in Trengganu, Sri Damansara, Puchong and in Johor. Nine more branches are planned for 2015. In addition to the bank's branch expansion, Zukri said Bank Islam has also enhanced its distribution channels by establishing five urban business centres, improve on internet banking and mobile banking services as well as provide more than 1,200 self-service terminals nationwide. Due to the new set of terms and conditions introduced by Bank Negara on loans, the bank suffered a 10 per cent decline in assets and loan performance.

Al Baraka Bank Syria and Arabia Engineering & Contracting (AEC) have signed an agreement for the construction of the bank’s headquarters in Damascus. The agreement was signed by Al Baraka Bank Syria CEO Mr Mohammed Halabi , and Nizar Obaid, CEO of AEC. The bank said the nine floor-building will be the first of its kind in Syria; built on eco-friendly’ principles. Al Baraka Bank Syria’s latest results show assets rising by more than 68 per cent in Q3 2013 to a record SYP 71.219 billion with profits of SYP 3.683 billion.

Bahrain-based Islamic lender Al Baraka expects at least 15 percent growth in net profit this year as its business recovers across a region hit by the Arab Spring unrest. The growth will also be fuelled by the company's entry into the Moroccan and Libyan markets and expansion in Tunisia. In Syria, where the bank has 10 branches, it has not been able to expand operations since the 2011 start of the civil war. The bank's fast growing 30-branch Algerian subsidiary has now captured nearly 5 percent of the country's foreign trade business and plans are under way for further expansion. The lender hopes to expand its global branch network from a current 480 to around 560 branches by end of 2014, with half of the 84 new branches opened in Turkey and Pakistan. The focus of expansion remains fast growth areas in the Middle East and Asia such as Pakistan and Indonesia because the Gulf is overbanked.

Our employer of the week has several vacancies to offer job seekers out there. Gulf African Bank which opened its doors in the country in 2008 is looking for customer service officers, product development, shariah compliance officers and tellers. Swaleh Sharif who is the human resource director says the deadline to submit your applications is in two months’ time.

The global financial crisis as well as the political unease over the last few years have led to weaker performances in Bahrain's banking sector, particularly wholesale banks. Along with banks in other markets, Bahrain-based banks have de-risked their balance sheets, concentrating on more stable sources of funding and reducing their exposure to riskier sectors. Besides, there have been a number of bank mergers in Bahrain recently. However, Bahrain has a more limited shock- absorption capacity compared to other GCC countries, like a budget highly sensitive to oil prices, a weak non-oil revenue base and modest fiscal reserves. Moreover, the political situation remains uneasy. As with other GCC institutions, the stronger Bahrain-based banks are widening their reach in other markets.

Panin Bank Syariah, the Islamic banking unit of Bank Panin Indonesia, plans to provide prospective hajj saving service for hajj and umrah. Managing Director of Panin Bank Syariah, Deny Hendrawati, said that company targeted hajj and umrah fund between 1 trillion to 1.5 trillion IDR from four thousand to five thousand customers. Panin Bank Syariah also develops its e-banking service. E-banking service is connected online to the Integrated Hajj Computerized System (Siskohat) at the Ministry of Religious Affairs. Hence, the customer's name who meets the minium saving will be automatically enlisted as a prospective hajj. According to central bank's new rule, Bank Panin Syariah can use its 500 parents' networks across Indonesia.

Pakistani Meezan Bank has launched Meezan Kafalah, a Shariah-compliant alternative to Bancassurance, in collaboration with takaful firm Pak Qatar Family Takaful Limited (PQFTL). Meezan Kafalah is a savings product through which customers can save money for their future plans. In addition, the customers also get Free Takaful coverage through PQFTL that in the case of the customer’s death during the savings period, the Takaful Partner will provide the funds needed for completing the savings. This new product, thus, offers a combination of saving, investment and protection. A differentiating feature of Meezan Kafalah is the accumulation of 100% cash value from day one of the investment with flexibility and ease of exit from the plan without any penalty or charges.

The Shariah-compliant sector has grown to $1.6 trillion in assets over the past three decades. That's why Muslim and non-Muslim financiers from around the globe have noticed the growing investor pool with enough cash to make a serious impact. In Africa, a handful of countries have already laid the groundwork to enable Islamic banking, and some of London’s newest landmarks were built thanks to Shariah-compliant bonds. Other countries have also made forays into the sector. However, there's a general lack of understanding of what Shariah entails, particularly relative to the financial world. Given the fact that a large proportion of the populations in developing countries in the Middle East, South Asia and Africa will be looking for Shariah-friendly ways to finance their projects, the sector is likely to continue its growth.

State-owned Islamic Bank of Thailand made an unaudited profit of 2.7 billion baht ($82.4 million) last year, compared to a loss of 13.25 billion baht a year earlier. Non-performing loans were cut by more than 20 billion baht last year, with about 27 billion baht of NPLs left on its balance sheet. Management now aims to increase capital levels to comply with regulatory requirements. The bank faced several problems in 2013 which affected its image and clients' confidence, leading to a liquidity crisis. The bank, rated BBB- by Fitch, now plans to increase loans by 20 billion baht, focusing on small and medium-sized businesses and retail clients, while growing deposits by about 25 billion baht in 2014. It maintains plans to issue sukuk this year to support expansion plans.

Bank Islam Malaysia expects a 20% year-on-year growth for its financing assets this year led by its retail financing business with demand for individual and housing credit. Bank Islam will also focuse on growing its fee-based income which had been very encouraging in the recent period. Cost is a major concern for banks. There has been some softening in loan demand. Bank Islam has originally been concentrating more on owner-occupied houses rather than speculation-based buying. The bank is planning to open at least five new branches in Malaysia by the end of this year with the first one being in Kelantan. Currently, the bank has 133 branches and a total retail deposit of about RM8 billion.

Abu Dhabi Islamic Bank has reported a net profit of Dh1.45 billion for 2013, up 20.7 per cent compared to Dh1.20 billion in 2012. The profit for the fourth quarter of 2013 increased by 41.4 per cent to Dh343.3 million. The Board of Directors recommended the distribution of 30.66 per cent cash dividends and 26.87 per cent bonus shares for 2013. Total assets have passed an important milestone and are now Dh103.2 billion, increasing by 19.8 per cent in 2013. Moreover, ADIB maintained its position as one of the most liquid banks in the UAE. ADIB Securities increased net profit for 2013 by 416.6 per cent to Dh29.7 million. With regard to Burooj, the Group’s real estate investment subsidiary, there was a reduction of commitments by a net Dh775 million vs 2012.

Last November, Kenyan president Uhuru Kenyatta attended the third Arab-Africa Summit in Kuwait. The visit and subsequent bilateral discussions were largely geared at establishing and strengthening joint financing mechanisms for capital intensive infrastructural projects through strong economic ties. During the visit, the Treasury realised Kenya was a member of the Islamic Development Bank which could help the country to tap more funds and become a highly industrializing, middle-income economy in the next 16 years. While over short term the country is focused on tapping into conventional financing streams from the dominantly Islamic Arab countries, it is angling herself to become the East and Central African hub for Islamic finance and banking over medium to long term period.