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Thursday, 20 June 2013

Malaysia: Bank Muamalat posts record pre-tax profit

KUALA LUMPUR: Bank Muamalat Malaysia Bhd (BMMB) posted a pre-tax profit of RM236mil for the financial year ended March 31, up 129% from a year ago and a historical high in its more than 13 years of operation.
It said in a statement the stellar performance was underpinned by strong financing growth and low credit cost arising from improved asset quality coupled with its concerted efforts in capturing fee-based income.
Total revenue increased 11.8% to hit almost RM1bil in the period under review. The increase was supported by a 10.4% growth in financing income and hibah, growing to RM904.6mil from RM819.3mil.
Similarly, fee and other income improved to RM94.7mil, a notable year-on-year growth of 27.5%, derived from the bank’s focus on expanding its Ar-Rahnu business and wealth management services, in addition to its increased corporate advisory activities.
CEO Datuk Mohd Redza Shah Abdul Wahid said it was a record year for the bank which had achieved a new milestone in its financial results.
“More importantly, we have closed the year with a healthier balance sheet. To keep this momentum going, we will continue to place great emphasis on strengthening our balance sheet to position the bank towards long-term sustainable growth,” he said in a statement yesterday.
The bank registered a net write-back of RM20.2mil for its financial assets, reversing the net provision of RM63mil made in the previous financial year.
Asset quality as measured by gross impairment ratio has improved to 2.5%, almost half of 4.7% recorded in the previous financial year.
These improvements are reflective of the bank’s continuous effort on prudent recovery, credit risk management initiatives taken and better quality financing base expansion.
Gross financing grew to RM10.6bil fuelled by a 30.2% growth in consumer financing over the preceding year. Consumer financing contributed 66% of the overall financing portfolio. With the growth in financing, the bank closed its financial year with total assets of RM21.1bil.
Total deposits grew to RM18.7bil with a growth of 17.3% in savings deposits from the expanded customer base in the period under review.
The bank has proposed a first and final dividend of 26% to its shareholders for the financial year ended March 31, 2013, subject to its shareholders’ approval.
(The Star Online / 13 June 2013)

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Blazing the trail for Islamic Banking

Islamic banking has taken the world of finance by storm setting new benchmarks for transparent, ethical, and accountable banking practices, and one of the most influential voices amongst the leaders who have championed the progress of Shariah compliant banking is, without a doubt, Afaq Khan, CEO of Standard Chartered Saadiq, the international Islamic banking business of Standard Chartered Bank. 
On Wednesday the 26th of June, the Capital Club, Dubai’s premier private business Club and member of the Enshaa group of companies, will be hosting an intimate evening with Mr Khan who will be sharing insights from his journey to the top of his field and a look at what the future of Islamic Banking will be. Moderated by Shane Phllips, Presenter of Dubai Eye's Eye On Careers and Host of Zee TVs show Top Guns, the evening marks the second in the Capital Club’s series of ‘The Path To Success’ talks that aim to give the Club’s Members and their guests a unique glimpse into what it takes to become a successful CEO. 
With over 20 years of banking experience, Mr Khan is actively involved in helping governments develop Islamic banking regulations. His in-depth banking experience has led him to a number of industry “firsts” including the inaugural USD denominated sukuk issued by the Republic of Indonesia; the first sovereign sukuk issued in AED denomination by the Emirate of Ras Al-Khaimah; as well as the first local currency sukuk programmes issued by the Government of Pakistan and the Monetary Authority of Singapore. 
Having joined Standard Chartered Bank in 2003 with the mandate to launch the Islamic business division for the Bank, Mr Khan has been responsible for the strategic build up of Standard Chartered’s international Islamic banking business covering retail, corporate and investment banking, culminating in the launch of the 'Saadiq' brand for Islamic banking at Standard Chartered Bank in 2007. Under his leadership, Standard Chartered Saadiq has received numerous awards, including being voted “Best International Islamic Bank” in 2009 by Euromoney and “Best Islamic Investment Bank” by the Asset Triple A Awards for Islamic Finance in 2009. 
(Albawaba Business / 19 June 2013)

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Malaysia: Spotlight on Islamic finance in Budget consultation meeting

KUALA LUMPUR: The 2014 Budget consultation meeting on Tuesday saw Islamic finance featuring prominently in the discussions.

Finance Ministry Secretary General Tan Sri Dr Mohd Irwan Siregar Abdullah said robust growth in the global sukuk market, led by Malaysia in recent years, had made it an important sector for the government.

“We talked about agro sukuk to help companies involved in farming activities raise capital to finance their businesses, alongside other forms of sukuk.

“We are also looking at other ways to introduce new products in the sukuk market in the coming years.

“This is to enable Malaysia to continue being the industry leader,” he told Bernama on the sidelines of the 4th World Takaful Conference : Family Takaful Summit Malaysia, yesterday.

Mohd Irwan said Malaysia’s Islamic capital market had contributed significantly to the development of the global Islamic capital market.

At the same time, he added, non-Muslim countries like Japan and Korea have been attracted to learn from Malaysia on how to introduce Islamic financing to raise their own capital.

The sukuk segment increased its market share of the overall bond market from 14.5 per cent in 2000 to 47.1 per cent as at the end of 2012.

Malaysia continued to be the world largest sukuk market with 69 per cent of the US$280 billion total global sukuk outstanding as at December 2012.

Earlier, in his speech, Mohd Irwan said demand for Islamic products was increasing tremendously on the back of the global financial turmoil, especially in European countries.

He also said that due to the better offers by Islamic financial products compared to the conventional in the global economy, this sector will be among the main points of discussion at the 4th Global Entrepreneurship Summit 2013 to be held in Kuala Lumpur, in October.

The US President Barack Obama, is expected to make a presentation at the event, on his maiden visit to Malaysia.

(Borneo Post Online / 20 June 2013)

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