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Maybank Islamic’s move into branch banking in the Middle East aims to attract Gulf investors to Southeast Asia. The Malaysian bank opened its first overseas branch at Dubai International Financial Centre (DIFC) in February. Maybank Islamic deputy CEO Nor Shahrizan Sulaiman said the new Dubai branch would serve as a the bank’s gateway not just to the UAE but to the wider GCC. The bank pursues further growth in Singapore and Indonesia, which it sees as home markets outside of Malaysia. The international business expansion is not new, as it has always been one of the focus areas of Maybank Islamic from early on. Maybank Islamic was granted a full Islamic banking licence from the Dubai Financial Services Authority last July, allowing it to open the DIFC branch. It replaces Maybank Islamic’s office in Bahrain, which has closed down.

Maybank Islamic has officially opened its first overseas branch in Dubai International Financial Centre (DIFC). It offers wholesale banking services and facilities, with emphasis in corporate financing, treasury, and capital market and trade finance. According to Maybank Islamic’s CEO Datuk Mohamad Rafique Marican, the DIFC branch was a significant milestone for Maybank Islamic, as it not only marks its first overseas branch but also Malaysia’s first Islamic bank to have a presence outside local shores. The regional office is headed by its country manager Nik Joharris Nik Ahmad, who has over 20 years experience having worked in Kuwait, Bahrain and Saudi Arabia. Maybank Islamic offers a range of Islamic financial products and services across 354 Maybank touch points in Malaysia, as well as international operations in Indonesia, Singapore, Hong Kong, London, Labuan, and Dubai.

According to a study from Schroders and Maybank Islamic, muslims have been underserved by the asset management industry, with limited innovation in product offerings and low growth in assets. As of June 2019, only US$3 billion was invested globally in Shariah global equity funds. Schroders and Maybank Islamic said the incorporation of sustainability considerations was both complementary in philosophy to Shariah investing, and had the potential to improve investment outcomes. The study further found that if investors were to start with a blank slate using Shariah principles as the anchor for their portfolio construction, sustainability considerations are likely to feature strongly. This implies that this singular focus of the Shariah investment industry is all set for an alignment with sustainable investing.

Maybank Islamic wants to be the bridge for the Islamic banking sector between the Gulf Cooperation Council (GCC) and the ASEAN region. CEO Datuk Mohamed Rafique Merican expressed confidence that the company would be able to play the role in facilitating the trade, as well as flow of funds for financial activities between the two regions. Last year, MIB announced that it might receive regulatory approvals to set up its Dubai branch in the first half of 2019. Maybank Islamic has strong footprints in Islamic finance, particularly in Malaysia, Indonesia and Singapore. Being the largest Islamic bank in Malaysia, Maybank Islamic has about RM225 billion worth of assets as at Dec 31, 2018 (FY18). Its total gross financing for FY18 advanced 8.1% year-on-year to RM176.8 billion and its Islamic financing contributed 58.7% to the group's total financing.

Malaysian Islamic banks are boosting their trade financing market share with various measures. Maybank Islamic CEO Mohamed Rafique Merican said the bank intended to grow its trade facilities in line with growing demand for Islamic finance in Malaysia. Mohamed Rafique was speaking to reporters after a forum on "Islamic Trade Finance: Revitalising Trade and Unlocking New Potential". He said a lot more could be done to boost Islamic trade facilities, which stood at 1.5% out of US$50 billion. RHB Islamic Bank CEO Datuk Adissadikin Ali said Islamic banks would need to collaborate with the financial technology players to provide e-commerce trade financing. He added that RHB Islamic Bank was developing an e-commerce trade financing platform to enable companies to boost their working capital and the platform was likely to be implemented next year.

#Malaysia is introducing value-based intermediation (VBI) to take its Islamic finance industry to the next level of growth. As a first step, Maybank Islamic initiated the pilot launch of its rent-to-own (RTO) home scheme, called HouzKEY, targeted at properties priced under RM1 million. For now, the product is limited to the bank’s employees but should become available to the public early next year. The bank is aiming for a portfolio size of RM1 billion within the first year. According to experts, this is just the beginning of more RTO schemes to come as several other Islamic banks are expected to launch their own versions. BIMB Holdings group CEO Malkit Singh Maan says the bank is hoping to launch its RTO product for affordable homes in the first quarter of next year. Other VBI products that banks may offer in the future are green technology financing and green sukuk.

Maybank Islamic has launched a rent-to-own (RTO) housing scheme. Named HouzKEY, the product is targeted at first-time house buyers and those who want to upgrade their homes. According to Maybank Islamic's CEO, Datuk Mohamed Rafique Merican, HouzKEY addresses the growing issue of concern for affordable home ownership. The new product will initially be made available to Maybank employees and is slated to be rolled out to the general public in early 2018. HouzKEY is the first such RTO product in the country fully enabled on a digital platform, with the application and submission of supporting documents being required to be made online. To be eligible, applicants should have a household income of at least RM5,000 and commit to a minimum rental tenure of five years. They will have the option to purchase the property after one year at a pre-agreed price.

Maybank Islamic was named the Islamic Bank of the Year 2017 in Asia-Pacific by The Banker. The bank also received recognition in the country awards category for Malaysia. The Banker noted that Tier 1 capital and total Shariah-compliant assets enjoyed notable growth, climbing by 12% and 16%, respectively. Maybank Islamic’s return on equity for the year was 15.4%, while its cost-to-income ratio was a respectable 36% and non-performing financing were just 0.8%. The bank’s steady growth pace in Singapore and Indonesia also contributed to its recognition as the best in Asia-Pacific. Maybank Islamic's CEO Datuk Mohamed Rafique Merican attributed the bank’s achievements to its employees and sound risk management practices. He said the bank intends to further enhance its global brand visibility, while also deepening its existing regional presence.

Maybank Islamic has announced the appointment of lawyer Zainal Abidin as its chairman. Zainal has been a director of Maybank Islamic since 2010 and previously served as chairman of Maybank Trustees. Prior to that, Zainal was a director of Malayan Banking (Maybank) from July 2009 to April 2014. Zainal, 63, is a practising corporate and commercial lawyer. As the founder and senior partner, Zainal established the firm Zainal Abidin in 1987.

Maybank Islamic is turning to its home markets for growth, in particularly Indonesia where it manages $2 billion worth of assets and is aiming to compete with domestic Islamic banks. According to CEO Mohamed Rafique Merican, the bank could grow beyond its core markets of Malaysia, Singapore and Indonesia, but expansion in other markets would be opportunistic. Indonesia remains a key market for the bank, after Malaysia which accounts for 90% of the bank's business. As part of the ASEAN banking integration framework (ABIF), Indonesia and Malaysia have agreed in August to give their banks greater access to each other's markets. The move would give Malaysia's Islamic banks a potential lead to tap into the world's biggest Muslim-majority country, and one that continues to restrict to foreign lenders.

Maybank Islamic is turning to its home markets for growth, in particularly Indonesia where it manages $2 billion worth of assets and is aiming to compete with domestic Islamic banks. According to CEO Mohamed Rafique Merican, the bank could grow beyond its core markets of Malaysia, Singapore and Indonesia, but expansion in other markets would be opportunistic. Indonesia remains a key market for the bank, after Malaysia which accounts for 90% of the bank's business. As part of the ASEAN banking integration framework (ABIF), Indonesia and Malaysia have agreed in August to give their banks greater access to each other's markets. The move would give Malaysia's Islamic banks a potential lead to tap into the world's biggest Muslim-majority country, and one that continues to restrict to foreign lenders.

Maybank Islamic hopes to attract RM2 billion (USD453 million) in deposits – within a year – by launching two new financial products. The products are Foreign Currency Mudharabah-i (FCM-i) and the Profit Now Account-i (PNA-i). FCM-i is a short-term Islamic foreign currency term deposit account based on the principle of Mudharabah. Dividends on FCM-i are based on an agreed profit-sharing ratio which is agreed up-front. The actual dividend will then be calculated on this ratio and the amount payable will be known upon maturity of the investment. The minimum deposit for individual customer is equivalent to USD5,000; tenures range from one to 12 months.

Maybank Islamic launched a new account for its Islamic private wealth clientele. The new feature will provide high net worth (HNW) clients with comprehensive private banking services. The bank explained that the enhanced platform will allow HNW clients to view and monitor their various Islamic investment portfolios holistically, in one single statement. The recent Asia Pacific Wealth Report by Capgemini indicates that the greatest enthusiasm for putting portfolios to work for social gain comes from high net worth individuals in the emerging markets of Indonesia, followed closely by Malaysia. Maybank's Group Head of Community Financial Services, Datuk Lim Hong Tat, said that Maybank Islamic provides an avenue for HNW individuals to earn returns in a more socially-responsible manner.

Malaysia is adapting to fintech revolution by adjusting its financial regulatory guidelines with an Islamic angle. According to Muhammad bin Ibrahim, governor of the Central Bank of Malaysia, the recent Islamic finance initiative could be the next game changer. The Investment Account Platform (IAP) is a platform that connects lenders, banks and enterprises seeking funds, one that could shift the role of Islamic lenders to investment intermediaries. Serving as a central marketplace to finance small and medium-sized enterprises (SMEs), the IAP was launched by six Malaysian Islamic banks: Affin Holdings, Bank Islam Malaysia, Bank Muamalat Malaysia, Maybank Islamic, Bank Kerjasama Rakyat Malaysia and Bank Simpanan Nasional.

Maybank Islamic, Asia Pacific's largest sharia bank, is not currently seeking a strategic partner, its acting chief said after earlier talk that it would merge with the country's second Islamic bank. Acting CEO Ibrahim Hassan said Maybank Islamic is only interested in partnerships for specific business products such as the joint issue of credit cards. Malaysian financial group BIMB Holdings also denied that it was in talks to merge its sharia banking subsidiary Bank Islam with Maybank Islamic.

Malayan Banking Bhd (Maybank) and Singapore-based RB Capital inked a S$260mil (RM751mil) Islamic financing deal, one of the biggest Islamic deals in Singapore. The landmark deal involved a 442-room mid-tier Holiday Inn Express Singapore Clarke Quay as the underlying security. The bank is continuously looking at growing its Islamic banking business in the region, especially in Singapore and Indonesia, which each currently accounts for about 5.0% of Maybank Islamic’s revenue. Maybank Group’s Islamic banking business in 2015 surged 20.4% in total income compared to the year before.

Maybank Islamic Bhd is confident its Islamic banking business in Singapore will contribute further to revenue in the future. Group head, Islamic banking, and chief executive officer Datuk Muzaffar Hisham said this was in view of the ongoing support from the Monetary Authority of Singapore (MAS) in promoting Islamic banking. Muzaffar said in less than three years, Islamic banking in Singapore had contributed about 5% to its revenue. It is reported that Singapore's central bank will continue to strengthen Islamic finance owing to its cross-border growth. The report said that since MAS established its sukuk facility in 2009, there had been eight sukuk issuances totalling S$600 million (RM1.7 billion).

Maybank Islamic Bhd is focused on ensuring a healthy capital and liquidity buffer in the face of the current economic challenges. Chief executive officer Datuk Muzaffar Hisham said Islamic banking and financial institutions as such, need strong, effective and sustainable risk management strategies. He also said the risk management helps to evaluate risks and formulate mitigating action. In terms of assets and financing outlook, Muzaffar said Maybank Islamic expects to see between nine and 10 per cent growth this year as compared with about 18-19 per cent year-on-year in 2015. For the financial year ended Dec 31, 2015, Maybank Islamic’s total assets exceeded US$36 billion, while gross financing reached RM131.1 billion, with deposits at RM123.4 billion.

Malayan Banking Bhd (Maybank) provided more Islamic loans than non-Shariah compliant financing in Malaysia for the first time in 2015 and the business was also more profitable. Maybank Islamic Bhd contributed 51 per cent of loans by the nation's biggest lender, up from 44 per cent in 2014, and a share 10 to 20 percentage points higher is possible, chief executive officer Muzaffar Hisham said. The unit achieved an average 16 per cent return on equity in the last four years, compared with 14 per cent for its parent. Maybank Islamic's total financing rose 21 per cent to RM131.1 billion (S$44.2 billion) last year. Growth will probably moderate to less than 10 per cent in 2016.

Malaysia’s Maybank Islamic Bhd says the investment account (IA) business is set to be a game changer for the group in its effort to boost earnings growth amid the subdued banking landscape. The Islamic lender, which has total assets worth close to RM147bil, will focus on its new mudarabah (profit-sharing) investment fund launched in July last year in view of the Islamic Financial Services Act (IFSA) 2013. Describing the IA business as “the evolution of the next phase of growth”, Maybank Islamic chief executive officer Datuk Muzaffar Hisham said that demand for the IA business has shot up significantly, as the value of its mudarabah fund rose to RM18bil in the last six months of 2015.