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Islamic Finance Briefing - Archive | October, 2011

ICIEC set to launch Sukuk policy to facilitate credit enhancement

Posted on 31 October 2011 by Laxman  |  Email|Print

Abdel Rahman TahaThe idea of a third party sukuk guarantee fund is still being considered by the Islamic Corporation for the Insurance of Export Credits and Investment (ICIEC), the standalone export credit agency of the Islamic Development Bank (IDB) Group.
However, according to Abdel Rahman Taha, the chief executive officer of ICIEC, the corporation “has initiated work internally to design a new sukuk policy which can be offered as a means to enhance the credit structure and appeal of sukuk. It is expected that this new policy will be able to provide the much needed respite to the sukuk market.”……………………………………….Full Article: Source

Malaysian issuers keep Sukuk market momentum going

Posted on 31 October 2011 by Laxman  |  Email|Print

Che Khalib Mohamed NohAnother sign that Malaysian corporates are leading the global sukuk market is the successful closing of Tenaga Nasional Berhad’s 4.85 billion ringgit ($1.55 billion) sukuk which was oversubscribed by over 4 times.
Tenaga Nasional, which is Malaysia’s largest power company, issued the sukuk which has a 20-year tranched tenor through a special purpose vehicle (SPV), Manjung Island Energy. The issuance, which is rated AAA by local rating agencies, RAM Rating Services and Malaysian Rating Corporation (MARC), is the first foray into the debt market for the power company since 2004………………………………………..Full Article: Source

Malaysian PM backs growth of Islamic VC

Posted on 31 October 2011 by Laxman  |  Email|Print

Malaysia’s highest office is throwing its weight behind Islamic venture capital and private equity. PM Najib Razak acknowledged that Islamic VC is still at an embryonic stage but that a greater awareness and understanding of Islamic finance itself could entice investors to risk their capital by investing in specific business opportunities.
Malaysia has been building its Islamic VC regulatory framework for some years now, releasing a ‘Guidelines and Best Practices on Islamic Venture Capital’ report in 2008. But growth is slow. ……………………………………….Full Article: Source

IDB boosts financing cooperation with Turkish corporates

Posted on 31 October 2011 by Laxman  |  Email|Print

The Islamic Development Bank (IDB) latest $75 million line of financing to Turkiye Finans Participation Bank, one of the four participation (Islamic) banks in Turkey and in which Saudi Arabia’s National Commercial Bank has a controlling stake, underlines the proactive involvement of the multilateral development bank of the Muslim world in Turkey over the last three decades.
The facility signed in mid-October 2011, on the sidelines of the 27th meeting of the Standing Committee for Economic and Commercial Cooperation of the Organization of Islamic Cooperation, (COMCEC), in Istanbul……………………………………….Full Article: Source

Al-Rajhi logs $49.2bln assets in ‘10, remains largest Islamic bank

Posted on 31 October 2011 by Laxman  |  Email|Print

Al-Rajhi Group maintained its position as the world’s largest Islamic bank at the end of 2010 while four in the UAE were among the 10 top Shariah-compliant banks, figures from the Beirut-based Union of Arab Banks (UAB) showed.
Al-Rajhi controlled $49.2 billion in assets in 2010, nearly a fifth of the combined assets of the Arab region’s Islamic banks. It said the bank’s assets gained nearly $4 billion over the previous year, when it also dominated the world’s Islamic banking industry………………………………………..Full Article: Source

Dubai Islamic Bank reports 10.5 pct jump in quarterly net profit

Posted on 31 October 2011 by Laxman  |  Email|Print

Dubai Islamic Bank said third quarter net profit climbed a better-than-expected 10.5 per cent in the July to September period thanks to a rise in assets and deposits.
The UAE’s third largest bank by market value, reported net profit of AED 298 million ($81.1 million) in the three months ended September 30, that’s up from AED 269.5 million ($73.3 million) it reported in the same quarter last year, and better than analyst forecasts………………………………………..Full Article: Source

Strong demand for QInvest Shariah-compliant ‘Equity Protected Note’

Posted on 31 October 2011 by Laxman  |  Email|Print

QInvest, launched the ‘Qatar Equity Protected Note’ to replicate the movements of the most liquid Shari’ah-compliant equities on the Qatar Exchange with full capital protection.
QInvest Chief Executive Officer Shahzad Shahbaz said, “We have seen an overwhelming response from the market as investors look to maximise returns whilst maintaining capital protection. The Note is one of a series of investment products QInvest is bringing into the market in the coming months, and demonstrates our strong Shari’ah-compliant structuring capabilities and commitment to meeting client needs.”……………………………………….Full Article: Source

Malaysia’s Mahathir: Western countries ‘failures’

Posted on 31 October 2011 by Laxman  |  Email|Print

Malaysia’s ex-premier Tun Dr Mahathir Mohamad said on Sunday that Muslim-majority countries should look east for development models and not at Western nations, which he described as ‘failures’.
The outspoken former long-time leader, who is known as a fierce critic of the West, said countries like South Korea, Japan and China were ’swimming in money’, while Europe and the United States are mired in debt………………………………………..Full Article: Source

Tunisia Islamists support tax cuts, investments to create jobs

Posted on 31 October 2011 by Laxman  |  Email|Print

Iman Mathlothy says she voted for Tunisia’s once-banned Islamist party, Ennahdha, because it promised to create jobs and fight corruption.
“I believe they have a clear agenda, especially on economic issues and employment,” said Mathlothy, a 31-year-old with a degree in multimedia who’s been unemployed for more than five months. Under the old regime, she said, “anyone without connections had a hard time while the elite thrived.”……………………………………….Full Article: Source

Credit Agricole may issue Islamic bond

Posted on 28 October 2011 by Laxman  |  Email|Print

French lender Credit Agricole is considering either issuing an Islamic bond or creating a wider sukuk program that could lead to several issues, as European banks seek to diversify funding, a senior executive said on Thursday.
“It’s something that we’re always looking at but it’s probably more on the agenda today than yesterday because banks need to diversify funding,” Simon Eedle, managing director and global head of Islamic banking, told the Reuters Middle East Investment Summit………………………………………..Full Article: Source

Kazakhstan may sell foreign debt to pave way for Islamic bonds

Posted on 28 October 2011 by Laxman  |  Email|Print

Kazakhstan is considering selling its first foreign-currency bonds in more than a decade next year to help cover the budget deficit and pave the way for its first sovereign Islamic debt.
The central Asian nation “is not excluding the sale of as much as $1 billion of Eurobonds next year,” Deputy Finance Minister Ruslan Dalenov said in an Oct. 26 interview in the capital, Astana. “As the sukuk market is quite narrow, it’s more reasonable to sell Eurobonds first,” which will become a benchmark, and then the Islamic bonds, he said……………………………………….Full Article: Source

Malaysia’s Tenaga sells Islamic bonds to yield 3.8-4.9 pct

Posted on 28 October 2011 by Laxman  |  Email|Print

Malaysia’s Tenaga Nasional Bhd. sold 4.85 billion ringgit ($1.5 billion) of Islamic bonds maturing in five to 20 years at yields between 3.80 percent and 4.90 percent, according to the company’s chief executive officer.
The Islamic bonds, or sukuk, which pay returns from assets that comply with the religion’s ban on interest, were sold in 16 portions and were priced at the lower end of the initial yield guidance, Che Khalib Mohamad Noh said……………………………………….Full Article: Source

Malaysia’s Tenaga Sukuk oversubscribed 4.7 times

Posted on 28 October 2011 by Laxman  |  Email|Print

Malaysia’s national power producer Tenaga Nasional Bhd’s 4.85 billion ringgit ($1.55 billion) Islamic sukuk attracted 23 billion ringgit worth of subscriptions and was priced 3.8-4.9 percent, IFR reported on Thursday.
IFR, a unit of Thomson Reuters, said the AAA-rated sukuk was divided into 16 tranches, and pricing was “at or below the tight ends of final guidance”………………………………………..Full Article: Source

Emaar’s bond yields inverted on demand for Sukuk

Posted on 28 October 2011 by Laxman  |  Email|Print

Yields on Dubai developer Emaar Properties PJSC longer-maturity bonds dropped below its shorter- dated securities in September as investors preferred Islamic bonds, which are in shorter supply.
Emaar’s Islamic bond, or sukuk, due 2016 yielded 7.84 percent, while its convertible bond due 2015 was available at 8.32 percent, according to data compiled by Bloomberg………………………………………..Full Article: Source

Sovereign, big corporates to aid Saudi Sukuk revival

Posted on 28 October 2011 by Laxman  |  Email|Print

Sukuk issuance in Saudi Arabia will pick up in 2012 after being buffeted by global economic worries, with a benchmark deal from a sovereign or large corporate name helping to drive momentum, the chief investment officer of NCB Capital said.
Faysal Badran told the Reuters Middle East Investment Summit that the pipeline of Islamic bonds in the kingdom was decent but the European debt crisis and geopolitical uncertainty was keeping potential issuers on the sidelines………………………………………..Full Article: Source

Islamic Development Bank to finance projects in Mozambique

Posted on 28 October 2011 by Laxman  |  Email|Print

The Islamic Development Bank (IsDB) is to grant US$68.3 million to finance projects in Mozambique during the 2011-2013 triennium, Planning and Development Minister Aiuba Cuereneia announced in Maputo.
Cited by Mozambique’s AIM news agency, Cuereneia said the amount would be applied to projects involving aquaculture and artisanal fishing, water supplies for rural areas and health and energy infrastructures. He added that the institution is currently financing projects in the education, energy, roads, agriculture and fisheries sectors worth an estimated US$80 million………………………………………..Full Article: Source

Islamic Development Bank offers three-year investment plan to Tajikistan

Posted on 28 October 2011 by Laxman  |  Email|Print

Minister of Agriculture of Tajikistan (MoA) Qosim Qosimov met with Ramil Muharramov, Country Operations Manager (Tajikistan and Kyrgyzstan) at Islamic Development Bank Group (IDB), Asia-Plus reported referring to the press center of the MoA.
The IDB representative informed Qosimov of IDB-sponsored projects being implemented in Tajikistan’s agrarian sector. Muharramov noted that the IDB management intended to work out a three-year investment plan for Tajikistan………………………………………..Full Article: Source

UNB profit rises 7.3pct to Dh496mln

Posted on 28 October 2011 by Laxman  |  Email|Print

Abu Dhabi-based Union National Bank reported Dh496.7 million net profit for the third quarter, up by 7.3 per cent compared to Dh462.8 million in same quarter in 2010. Sequentially, quarter-on- quarter the profit for the third quarter of 2011 increased 18.6 per cent compared to the second quarter of 2011.
Islamic financing was up by 21 per cent to Dh1.76 billion. The increase in net interest income and net income from Islamic financing was achieved by an expansion in the net interest margin, increase in loans and advances and optimisation of liquidity levels………………………………………..Full Article: Source

Islamic investing – From niche to mainstream?

Posted on 28 October 2011 by Laxman  |  Email|Print

The Muslim community currently makes up approximately 4% of the UK population. This is set to double to 8% over the next two decades. Yet the proportion of the estimated £500bn UK DC assets† invested in Islamic funds is a minuscule fraction of this amount. As pension scheme professionals should this matter to us and how can we help rectify the situation?
Auto-enrolment brings many challenges and opportunities, as well as an additional five to eight million individuals who will be saving more or joining a pension scheme for the first time. With an average age of only 28§, many of these new investors will be Muslims. They like many other inexperienced savers will be ideal candidates for the government’s new pension scheme, NEST………………………………………..Full Article: Source

Islamic Foundations: A new financial model

Posted on 28 October 2011 by Laxman  |  Email|Print

Many keen observers of Islamic banking & finance are not satisfied with the current “banking” based model of Islamic financial intermediation and hence suggest that a new Islamic model must be developed for the savers and users of the surplus funds in society. One such model could be called Islamic Foundations.
An Islamic foundation is a collective saving and investment programme that allows its members to save together in order to do business together. This could be a deposit taking institution in itself or may have a deposit taking institution as part of its overall operations………………………………………..Full Article: Source

Saudi Sukuk issuance to pick up in 2012

Posted on 27 October 2011 by Laxman  |  Email|Print

Sukuk issuance in Saudi Arabia will pick up in 2012 after being buffeted by global economic worries, with a benchmark deal from a sovereign or large corporate name helping to drive momentum, the chief investment officer of NCB Capital said.
Faysal Badran told the Reuters Middle East Investment Summit that the pipeline of Islamic bonds in the Kingdom was decent but the European debt crisis and geopolitical uncertainty was keeping potential issuers on the sidelines………………………………………..Full Article: Source

Saudi Aramco may lead Gulf in bond sales next year

Posted on 27 October 2011 by Laxman  |  Email|Print

Saudi Arabia, seeking to expand petrochemicals production and diversify the economy, will tap debt markets to benefit from falling Middle East debt yields, officials from the kingdom’s main oil and chemicals makers said.
State-owned Saudi Arabian Oil Co., known as Saudi Aramco, plans to borrow to support its expansion in chemicals, Chief Executive Khalid Al-Falih said Oct. 8. The company is planning about $26 billion in refineries and petrochemical facilities that may sell debt next year. Saudi Basic Industries Corp., the world’s second-biggest petrochemicals producer, may also sell bonds next year to refinance existing borrowings, its CEO said………………………………………..Full Article: Source

Emaar’s bond yields inverted on demand for Sukuk: Arab Credit

Posted on 27 October 2011 by Laxman  |  Email|Print

Yields on Dubai developer Emaar Properties PJSC longer-maturity bonds dropped below its shorter- dated securities in September as investors preferred Islamic bonds, which are in shorter supply.
Emaar’s Islamic bond, or sukuk, due 2016 yielded at 7.99 percent yesterday, while its convertible bond due 2015 was available at 8.58 percent, according to data compiled by Bloomberg. Yields on bonds of utility Dubai Electricity & Water Authority have also inverted since August, with its 2016 security trading at a yield of 5.23 percent yesterday and its 2015 bond at 5.74 percent………………………………………..Full Article: Source

Nigeria: Islamic banking is unconstitutional, CAN says

Posted on 27 October 2011 by Laxman  |  Email|Print

Leaders of The Christian Association of Nigeria (CAN) recently held a meeting. At the end of the meeting, they released a communique in which they expressed opposition to introduction of Islamic banking in Nigeria.
In the communique, published in the October 20, 2011, issue of The Punch, the CAN leaders said they were not opposed to the doctrine and practice of Islam in Nigeria. They said Christianity and Islam have co-existed in Nigeria for a long time………………………………………..Full Article: Source

Al Baraka sees Libya seen expediting Islamic license

Posted on 27 October 2011 by Laxman  |  Email|Print

Bahraini lender Al Baraka Bank expects the change in Libya’s government to expedite its previously filed Islamic banking license in the country, the bank’s chief executive said on Wednesday.
“Under the new government, we hope that we can process our expansion (in Libya) a little bit faster,” said Adnan Ahmed Yousif in a telephone interview with Reuters. “We are going for a full retail bank there. We hope that it can be done next year.”……………………………………….Full Article: Source

Islamic megabank could launch in 2011 after delays

Posted on 27 October 2011 by Laxman  |  Email|Print

Investors in a long-touted Islamic bank with as much as $3 billion in capital hope to launch the bank next year, bankers said Tuesday, in a bid to improve the competitiveness of the scattered industry.
Saudi Arabia’s Sheikh Saleh Kamel, founder and chairman of Bahrain-based Islamic bank Al Baraka, has spearheaded an initiative to establish a global Islamic mega bank but the plan has been touted for years………………………………………..Full Article: Source

Record profits for Abu Dhabi Islamic Bank (ADIB) in Q3

Posted on 27 October 2011 by Laxman  |  Email|Print

Abu Dhabi Islamic Bank (ADIB) reports better than expected quarterly results despite the impact of lending restrictions imposed by the central bank. ADIB saw its highest ever quarterly net profit for the third quarter at AED 319.1 million ($86.8 million), only slightly higher than the AED 314.5 million ($85.6 million) it reported for the same period a year earlier.
The Islamic lender beat average forecasts for profit of AED 286.5 million ($78 million)………………………………………..Full Article: Source

Bank suffers loss after surge in provisions

Posted on 27 October 2011 by Laxman  |  Email|Print

Emirates Islamic Bank, the Sharia-compliant lender based in Dubai, has reported a third-quarter loss of Dh121.8m (US$33.1m), down from a profit of Dh12.5m a year earlier. A 29.1 per cent rise in provisions for bad debts to Dh189.7m weighed down the bank’s earnings, alongside losses from investments that more than tripled to Dh42.4m.
Emirates Islamic Bank also received lower income from its parent, Emirates NBD, which fell 66.7 per cent to Dh35.1m………………………………………..Full Article: Source

Barwa Bank shareholders approve increase in capital

Posted on 27 October 2011 by Laxman  |  Email|Print

At an Extraordinary General Meeting held on Monday evening, shareholders in Barwa Bank voted in favour of a Rights Issue that will increase the Bank’s Issued Capital from QAR 1.9bn to QAR 3bn. In addition, Authorised Capital will be increased from the current QAR 2.5bn to QAR 6bn.
The vote followed an address to shareholders by the Chairman of Barwa Bank, His Excellency Sheikh Mohammed bin Hamad bin Jassim al Thani, in which he highlighted progress made over the last year. His speech covered a number of different areas including (Press Release)

Kuin awards honorary doctorate in Islamic finance to IDB president

Posted on 27 October 2011 by Laxman  |  Email|Print

Kolej Universiti Insaniah (Kuin) will confer an Honorary Doctorate in Islamic Finance on Islamic Development Bank (IDB) President, Tan Sri Dr Ahmad Mohamed Ali Al-Madani in a special convocation this Friday.
The award is expected to be presented by Sultan Kedah Tuanku Abdul Halim Mu’adzam Shah who is also Kuin Chancellor during the special convocation held in conjunction with Langkawi Islamic Finance and Economics International Conference 2011 (LIFE 3) in Langkawi from Saturday to Monday………………………………………..Full Article: Source

Rolling out Sharia products requires backing: Sangour

Posted on 27 October 2011 by Laxman  |  Email|Print

A successful rolling out of Islamic financial products requires support from all parties concerned and formulation of just rules and regulations alone will not help, Hamoud Sangour Al Zadjali, executive president of the Central Bank of Oman, said.
“Islamic finance cannot proceed just by the rules set by the regulators. It will be the culmination of efforts of all concerned. There should be support, contributions from many and diligence and discipline from all,” he added, while addressing a seminar on Islamic banking organised by KPMG………………………………………..Full Article: Source

Turkey’s Islamic Bank gets $75 mln from IDB

Posted on 27 October 2011 by Laxman  |  Email|Print

The Islamic Development Bank (IDB) has assigned $75 million line of finance to Turkey’s Islamic Bank, Turkye Finans Participation Bank.
At the 27th meeting of the Standing Committee for Economic and Commercial Cooperation of the Organization of Islamic Cooperation, (COMCEC), in Istanbul, IDB Group President Dr. Ahmad Mohamed Ali signed an agreement with the one of Turkey’s largest Islamic Banks………………………………………..Full Article: Source

Bakheet expects Tadawul opening soon

Posted on 27 October 2011 by Laxman  |  Email|Print

Saudi Arabia’s Bakheet Investment Group expects the Kingdom to fully open its stock market to foreigners in the first half of next year, with banks and petrochemical firms most likely to attract investment, an executive said on Wednesday.
The Saudi bourse, the region’s largest and most liquid stock market, has been moving toward giving foreigners access to the market, but does not yet allow direct ownership or trade in Saudi shares………………………………………..Full Article: Source

Islamic finance prepares to compete for global growth

Posted on 27 October 2011 by Laxman  |  Email|Print

As the global Islamic finance industry enters the next phase of growth, more than 1,200 industry leaders, senior decision-makers and key regulators from over 50 countries are set to gather at the 18th Annual World Islamic Banking Conference (WIBC 2011).
Hosted with the strategic partnership of the Central Bank of Bahrain WIBC 2011 will be held at the Gulf International Convention Centre on Nov.23. The theme for this year’s WIBC, ‘Competing for Global Growth’, reflects the expanding geographical footprint of Islamic finance and the increasing presence of Islamic financial institutions in new jurisdictions. (Press Release)

Islamic finance experts head to Bahrain

Posted on 27 October 2011 by Laxman  |  Email|Print

More than 1,200 industry leaders, senior decision-makers and key regulators from over 50 countries are set to gather in Bahrain for the 18th annual World Islamic Banking Conference (WIBC 2011) next month.
The event, being hosted in strategic partnership with the Central Bank of Bahrain, will run from November 21 to 23 at the Gulf International Convention Centre, Gulf Hotel………………………………………..Full Article: Source

Majid Al Futtaim, Albaraka, Asya Katilim: Islamic bond alert

Posted on 26 October 2011 by Laxman  |  Email|Print

The following borrowers are expected to sell Islamic bonds, which use asset returns to pay investors to comply with the religion’s ban on interest. Global sales of sukuk climbed to $18.8 billion in 2011, from $12.7 billion a year earlier, according to data compiled by Bloomberg.

Majid Al Futtaim Holdings: The Dubai-based operator of Carrefour SA stores in the Middle East plans to issue a sukuk in “a few weeks” barring a further decline in global market conditions, Iyad Malas, the chief executive officer, said in an interview in Jordan………………………………………Full Article: Source

Tenaga seeks 4.95pct yield for Sukuk

Posted on 26 October 2011 by Laxman  |  Email|Print

Tenaga Nasional Bhd, Malaysia’s biggest power producer, is seeking to price its RM4.85 billion (US$1.55 billion) Islamic bond to yield between 3.8 percent and 4.95 percent, according to a person familiar with the matter.

Proceeds from Islamic bonds, or sukuk, which pay returns from assets that comply with the religion’s ban on interest, will be used to finance the company’s coal-fired plant in the state of Perak, north of Kuala Lumpur, the person said, declining to be identified because the details are private………………………………………Full Article: Source

The National Industries successfully settled its US$ 100 mln Sukuk

Posted on 26 October 2011 by Laxman  |  Email|Print

Arrangers, Lead managers and Structuring Advisors of the National Industries Company for Building Materials (NICBM) Sukuk; Kuwait Finance House, Liquidity Management Centre, Gulf International Bank, and Standard Bank are pleased to announce that the US$ 100 million Sukuk for The Building Materials Company has been successfully settled and paid for in full on its Maturity date 18 October, 2011.

The Sukuk was underwritten by Kuwait Finance House (Kuwait), Liquidity Management Centre, Gulf International Bank and Standard Bank………………………………………Full Article: Source

HwangDBS Research expects Axis REIT to issue Sukuk bonds

Posted on 26 October 2011 by Laxman  |  Email|Print

Axis Real Estate Investment Trust (REIT) is expected to issue sukuk bonds worth RM300 million in the near-term to refinance its short-term debt, extend its debt expiry profile and lock in lower interest rate.

As at September 30, Axis REIT short-term debt stood at RM340 million, with RM198 million due this year. However, it was likely REIT might draw down a portion first, given the revolving credit due to the maturity in 2011, and planned unit placement, HwangDBS Vickers Research Sdn Bhd (HwangDBS Research) said………………………………………Full Article: Source

Saudi Arabia mulls project bonds

Posted on 26 October 2011 by Laxman  |  Email|Print

Saudi Arabia will not need to tap into its reserves this year to finance additional budget spending but it is considering whether to issue Islamic or conventional bonds to help fund specific projects, the country’s Finance Minister Ibrahim Alassaf told Reuters. Responding to a wave of social unrest across the region, the world’s top oil exporter pledged early this year to spend an estimated $130 billion, or nearly 30 percent of its economic output, on housing and other social measures for its citizens over an unspecified period.

That came on top of a record 2011 government budget of 580 billion riyals ($154 billion), raising the possibility that Saudi Arabia might have to dip into its fiscal reserves, estimated by analysts at about $280 billion, to fund spending………………………………………Full Article: Source

ABG acquires Al-Tawfeek shares

Posted on 26 October 2011 by Laxman  |  Email|Print

Albaraka Banking Group BSC (ABG), the Islamic banking group based in Bahrain, has announced the acquisition of 60 percent of the issued shares of Al-Tawfeek Financial Group through its subsidiary in Bahrain, Al-Baraka Islamic Bank.

Al-Tawfeek Financial Group Company is a closed joint stock company registered in Saudi Arabia and licensed by the Capital Market Authority. The company engages in asset and portfolio management, custody, debt and equity arranging, as well as research and advisory services. All products and services offered by the company are in compliance with the provisions of Shariah. The company’s authorized capital is SR360 million………………………………………Full Article: Source

Moody’s: New IFSB liquidity guidelines are credit-positive for Islamic banks

Posted on 26 October 2011 by Laxman  |  Email|Print

On 12 October, the Islamic Financial Services Board (IFSB), a standards setting body for Islamic Financial Institutions (IFIs), issued an Exposure Draft presenting their proposed principles on liquidity risk management.
As a global standard setter for IFIs, the IFSB principles are often adopted by the relevant supervisory authorities and hence are an important step in improving stability of financial systems where IFIs operate. This draft is credit-positive for IFIs as it translates a set of globally recognised best practices for liquidity management into the Shari’ah-compliant banking context………………………………………Full Article: Source

Adib Q3 profit inches up

Posted on 26 October 2011 by Laxman  |  Email|Print

Abu Dhabi Islamic Bank (Adib) reported flat third quarter profits on Tuesday, citing the impact of central bank limits on lending on revenues, and warned of subdued sector growth next year.

The bank had net profit of Dh319.1 million ($86.9 million) in the three months ended Sept. 30, up slightly from Dh314.52 million a year earlier, it said in a statement. The Islamic lender’s results still beat analysts’ average forecast for profit of Dh286.50 million………………………………………Full Article: Source

Abu Dhabi Islamic Bank expects subdued growth in 2012

Posted on 26 October 2011 by Laxman  |  Email|Print

Abu Dhabi Islamic Bank reported flat third quarter profits on Tuesday, citing the impact of central bank limits on lending on revenues, and warned of subdued sector growth next year.

The bank had net profit of AED319.1m ($86.9m) in the three months ended September 30, up slightly from AED314.52m a year earlier, it said in a statement………………………………………Full Article: Source

UAE’s ADCB Q3 net profit surges, beats forecasts

Posted on 26 October 2011 by Laxman  |  Email|Print

Abu Dhabi Commercial Bank , the fourth largest bank in the UAE by market value, nearly doubled its third-quarter net profit on Tuesday, beating analysts forecasts, helped by lower impairment provisions and higher net interest income.

ADCB, 58-percent owned by the government of Abu Dhabi, posted a net profit of 607.6 million dirhams ($165.5 million) in the third quarter, compared with 317.7 million dirhams in the year earlier period, the bank said in a statement………………………………………Full Article: Source

Emirates NBD expects slight increase in bad loan ratio

Posted on 26 October 2011 by Laxman  |  Email|Print

Dubai Emirates NBD took a conservative stand on its provisioning policy in the third quarter of 2011 as it expects a moderate increase in its non-performing loans (NPLs) ratio in the next two years, bank officials said.

The bank reported an impairment charge of Dh1.57 billion in the third quarter of 2011 driven by a specific provision of Dh950 million made in relation to the Dh4.7 billion exposure to a Dubai-based government related entity (GRE)………………………………………Full Article: Source

Turkey’s Islamic Bank gets $75 mln from IDB

Posted on 26 October 2011 by Laxman  |  Email|Print

The Islamic Development Bank (IDB) has assigned $75 million line of finance to Turkey’s Islamic Bank, Turkye Finans Participation Bank. At the 27th meeting of the Standing Committee for Economic and Commercial Cooperation of the Organization of Islamic Cooperation, (COMCEC), in Istanbul, IDB Group President Dr. Ahmad Mohamed Ali signed an agreement with the one of Turkey’s largest Islamic Banks.

The agreement, counter-signed by CEO of the Turkish bank, Mr. Derya Gurerk, provides long term financing opportunities to small and medium enterprises in Turkey through Installment Sale, Ijara and Istisna’a modes of Islamic finance………………………………………Full Article: Source

Kuwait Finance House considers investment opportunities in new markets

Posted on 26 October 2011 by Laxman  |  Email|Print

Kuwait Finance House (KFH) AGM for Investment Sector Abdul Nasser Al-Subeih said that KFH achieved $6.5m (KD1.8m) as profit when exiting Asia 2 real estate fund.
He added that the operation achieved internal return that reached 15.8% yearly, and stressed that the fund that is in Malaysia began operating in 2010 by investing in the development of one of the major real estate projects in Malaysia, which is Pavilion 2 in Kuala Lempur………………………………………Full Article: Source

HLM Takaful sees bigger contribution from bancatakaful

Posted on 26 October 2011 by Laxman  |  Email|Print

Hong Leong MSIG Takaful Bhd (HLM Takaful), which entered into a strategic bancatakaful distribution partnership with Malaysia Building Society Bhd (MBSB), is eyeing some 60% revenue contribution from the bancatakaful segment by 2014.

HLM Takaful appointed representative Abdul Khalid Salleh said the bancatakaful segment is currently contributing 40% to its revenue while the other 60% is from the corporate, agency and retail segment………………………………………Full Article: Source

Bahrain insurance sector continue its growth over the last decade

Posted on 26 October 2011 by Laxman  |  Email|Print

The Central Bank of Bahrain (CBB) delighted to present the Insurance Decennial Report 2010, which is the first such report of its kind in the region, the report highlights the performance of the insurance industry in Bahrain for a ten years period from 2001-2010 and analyses the insurance (both “conventional insurance & reinsurance” and “Takaful & Retakaful” business) by class of business in the Kingdom with touching upon the origin and the historical background of the insurance market in Bahrain.
The Bahrain insurance market posted continues annual growth over the period 2001-2010, with gross premiums increase steadily at a compound annual growth rate (CAGR) of around 15% to register BD 210.5 million in Bahrain Insurance Market in 2010 compared to BD 58.6 million in 2001………………………………………Full Article: Source

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