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Islamic Banking Overview

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Maybank Islamic Banking Group (MIBG) is the Islamic banking arm of the Maybank Group. In alignment with the Group’s aspirations, our strategy is to become the leading Islamic Bank in ASEAN by 2015. MIBG which focuses on managing and setting strategies for the overall Group Islamic banking business, is strongly supported by the House of Maybank and is driven by both the Group’s Islamic First policy and by our growth targets for Islamic business.

“The phenomenal growth potential for Islamic banking has enabled MIB to consistently achieve double digit growth in revenue. We foresee that this will continue through income-stream diversification via Islamic investment banking, Islamic wealth management and our International Business Currency Unit (ICBU). Moving forward, we are strengthening our presence in markets that have the potential to carry the Islamic banking industry to the next level.”

Muzaffar Hisham
Chief Executive Officer, Maybank Islamic Berhad and Head, Group Islamic banking

Highlights

  • In FY2011, MIB’s gross attributable income and profit before zakat and tax increased by 31% and 58% to RM2.6 billion and RM838.5 million respectively
  • Financing grew by 35% to RM46.8 billion, accounting for 27.4% of the Group’s total domestic financing portfolio, and surpassing Bank Negara Malaysia’s target of 20% as laid out in the Financial Sector Masterplan 1
  • Total deposits rose to RM48.3 billion – a major increment of 40.0%
  • We were the largest issuer of single Islamic junior sukuk of RM1 billion for regulatory capital purposes

 

In Malaysia, Maybank Islamic Berhad (MIB) dominates the Islamic banking industry with a leading market share in the retail financing and deposits segments. Regionally, we are the largest Islamic bank in ASEAN with a total asset size of RM66.0 billion (as at 30 June 2011). On the global front, the Group’s Global Wholesale Banking is recognised as the largest global sukuk manager both for sukuk in all currencies – with a market share of 31.9% – and for RM-denominated sukuk – with a market share of 35.4% (Bloomberg league table, 12-month period ended 30 June 2011).

MIB Contribution to Maybank Group Domestic as at 30 June 2011

 

 

House of Maybank – Strategic Objective: Leading Islamic bank in ASEAN

By strengthening intra-group linkages and capitalising on the strategic objective of becoming a leading Islamic bank in ASEAN under the House of Maybank, Islamic Banking continues to build business sustainability through stronger collaboration with Community Financial Services (CFS) Global Wholesale Banking (GWB) and Enterprise Transformation Services (ETS). This has resulted in more innovative cross-selling and bundling of products and services, allowing greater market penetration and network expansion of Islamic Banking business domestically and overseas.

 

BUSINESS LINES

MIBG’s business offers comprehensive Shariah-compliant financial solutions to cater to the needs of its customers, cutting across the House of Maybank’s pillars, namely CFS and GWB. In Malaysia, CFS is the core contributor to MIB’s total financing, accounting for approximately 66% as at 30 June 2011.

We offer Islamic banking expertise both regionally and globally, while Maybank’s recent strategic acquisition of Kim Eng Holdings will enable us to further entrench our leadership in the capital markets and investment banking services.

Key Accomplishments and Innovative Products

Malaysia:

We are a market leader in Malaysia’s Islamic banking industry. With over four million customers, we are the nation’s largest Islamic commercial bank. Our achievements for the year include the following:

  • We dominated the automobile sector gross financing portfolio with a contribution of 32.0% to the Group.
  • Our automobile sector grew 21.0% and continued to lead the industry with a 33.6% market share.
  • Maybank Investment Bank acted as joint bookrunners and joint lead managers for the USD2 billion Wakala Global Sukuk offering by the Government of Malaysia.
  • We secured a major financing deal under our ICBU and a cross border transaction totalling approximately USD362.1 million.
  • We launched our Islamic HOT stock broking service which allows customers to open accounts trading in Shariah-compliant equities.
  • We offered other innovative products including:

o    Commodity Murabahah-based deposits (Profit Now Account-i)
o    Islamic Foreign Currency deposits and remittances
o    Promissory FX – FX Spot, FX forward and FX swaps
o    Islamic Profit Rate Swap
o    Islamic Cross Currency Profit Rate Swap

  • We opened two new branches, in iCity, Shah Alam and Gunung Rapat, Ipoh.

Singapore:

Singapore launched its first Shariah-compliant savings account for pilgrims going on the Hajj – the Muslim pilgrimage to Mecca – and also an Islamic financing package for small and medium enterprises (SMEs) seeking financing for completed commercial and industrial properties.
 

Indonesia:

We currently have two vehicles in Indonesia, namely PT Bank Internasional Indonesia TBK (BII) and Maybank Syariah Indonesia (MSI). BII has its own Unit Usaha Syariah dealing mostly in retail financing, while MSI deals with the corporate and wholesale segments. During the year, BII launched a Traveller Saving Account-i based on Mudharabah principles, that provides travellers with both an ATM card and a Debit Card.

 

STRATEGIC THRUST

To be the Leading
Islamic
Bank
in ASEAN

 Our expansion plans focus on key ASEAN markets, though ultimately we also aim to expand into the opportunistic markets of London, Hong Kong/China and the Middle East.
  • The Malaysian market will remain our core market, with our Islamic First strategy driving growth in both retail and global wholesale banking.
  • In Indonesia, the opportunities are vast, and we will continue to pursue our growth strategy through BII’s Unit Usaha Syariah and Maybank Syariah Indonesia.
  • The Singapore market has shown positive growth since its inception and we are one of the few banks offering universal Islamic banking products and services.

We offer consumer, wholesale and investment banking products and services not only in Malaysia but in many locations in Asia, as well as in key financial centres such as Indonesia, Singapore, London and the Middle East.

 

AWARDS

  • Kuala Lumpur Islamic Finance Forum (KLIFF) Islamic Finance Awards

–    Most Outstanding Islamic Retail Bank

  • Asset Triple A Islamic Finance Awards

–    Islamic Retail Bank of the Year

  • Credit Guarantee Corporation (CGC):
    Top SMI Supporter Award 2010

–    Islamic Bank Category