Islamic Banking
The strength of collaboration across the new House of Maybank has enabled Maybank Islamic Berhad ("Maybank Islamic") to sustain its leadership position in ASEAN via comprehensive and differentiated products and services to our customers.
"We established clear performance tracking systems and strengthened collaboration between Maybank Islamic and the Group to ensure staff - in particular frontliners - are better equipped with knowledge on Islamic banking-related matters to serve our customers better."
Muzaffar Hisham
Chief Executive Officer, Maybank Islamic Berhad
Head, Group Islamic Banking
Highlights
- Maybank Islamic maintained its leadership with PBT of RM1.19 billion (up by 25%), and total gross financing grew by 18.3% to RM62.0 billion (representing 30.6% of Maybank Group's domestic financing).
- Maybank Group's Islamic banking business continued to contribute positively to the Group, recording a 19.4% increase in total income of RM2.20 billion for the period, compared with RM1.84 billion in December 2011.
- Maybank Islamic maintained the largest market share in Malaysia's Islamic banking industry for both financing and deposits.
Performance
In Malaysia, Maybank Islamic saw sustainable financing growth of 18.3% during the period under review with total financing at RM62.0 billion. CFS financing portfolio rose by 20% while GWB financing grew by 14% year-on-year. Deposits from customers grew to RM71.0 billion whilst CFS and GWB portfolios increased by 34% and 11% respectively.
Asset quality at Maybank Islamic remains strong with net impaired financing of 0.70% improving further from 1.03% in December 2011, while the adjusted financing to deposit ratio also improved to 82.0% from 83.7% in last the financial year.
Together with CFS and GWB, we have successfully maintained our overall market share leadership in assets, financing and deposits supported by effective engagement strategies with our sales force and execution of the Islamic First Strategy.
We continue to strive to provide innovative Shariah-compliant solutions for the benefit of our customers. This year, we extended coverage of our unique Premier Mudharabah Account-i to the SME, Business Banking and Corporate segments. We launched the new variable rate mortgage financing under the concept of Commodity Murabahah.
We enhanced our Ikhwan credit card offering via the Ikhwan Visa Infinite launch and we introduced the M2U Savers-i, an online savings account for customers' convenience in opening, accessing and closing accounts from anywhere around the world.
In 2012 and through collaboration with CFS, various initiatives were organised to bring us closer to our customers, including nationwide events with the community at regions and branches. With clear performance tracking systems and collaboration between Maybank Islamic and the Group, staff - particularly frontliners - are better equipped with knowledge and accountability on Islamic banking-related matters to serve our customers better and contribute to the growth of Islamic banking products and services.
On the regional front, our key focus markets for 2012 have been Indonesia and Singapore. In Indonesia, we are expanding our Islamic universal banking products and solutions through Bank Internasional Indonesia's Unit Usaha Syariah and Maybank Syariah Indonesia. To achieve growth in Indonesia, we have also geared up our engagement across all lines of business and branches to draw commitment and focus to the rapid expansion targeted for the year ahead.
In Singapore, the Maybank Singapore Islamic window continues to be the leading provider for Islamic retail banking services and additionally this year, we have widened our treasury solutions and secured the first Islamic Profit Rate Swap deal with a leading Singapore-based conglomerate.
This is in line with our objective of providing a complete suite of financial services to the Singapore market.
Awards 2012
- Global Finance Magazine Awards 2012
- World's Best Islamic Financial Institutions (Asia)
- World's Best Islamic Financial Institutions (Malaysia)
- KLIFF Islamic Finance Awards 2012
- Most Outstanding Islamic Investment Bank
- Global Finance World's Best Islamic Financial Institution Awards 2012
- Best Sukuk Bank
- Best Project Finance Financial Adviser (Asia) 2012
- Global Finance Best Islamic Financial Institutions Awards 2012
- Islamic Finance Deal of The Year – Wakala Global Sukuk Berhad USD2.0 Billion Global Sukuk Certificates
- The Asset Triple A Asian Awards 2012
- Best Islamic Trade Finance Bank Malaysia
- Best Islamic Retail Bank Malaysia
- The Asset Triple A Awards 2012 – Islamic Finance
- Best Islamic Deal of the Year / Best Sovereign Sukuk 2012 - Wakala Global Sukuk Berhad USD2.0 Billion Global Sukuk Certificates
- Best Islamic Deal, Malaysia 2012 - Wakala Global Sukuk Berhad USD2.0 Billion Global Sukuk Certificates
- Best Corporate Sukuk 2012 – Projek Lebuhraya Usahasama RM30.6 Billion Sukuk
- Best Islamic Restructuring Deal – Pengurusan Aset Air Berhad RM5.8 Billion
- The Asset Triple A Country Award 2012
- Best Islamic Equity - Bumi Armada RM2.66 Billion
Outlook
Our focus for the next financial year is to accelerate growth through truly competitive differentiators. We foresee Maybank Group's Islamic banking business growth to be driven by domestic business as well as our key regional markets, namely Indonesia and Singapore. In line with Bank Negara Malaysia's aspirations outlined in the Financial Sector Blueprint 2011-2020 on the "Internationalisation of Islamic Finance", we are intensifying our efforts to strengthen our presence globally to establish Islamic Finance linkages across countries in ASEAN and to provide value propositions in our endeavours. In doing so, we will continue to engage and work closely with the relevant regulators and industry players across the region. Shariah compliance and excellence as well as implementation of best risk management practices as guided by the Group will continue to be our priority whilst we continue our journey to be the Global Islamic Finance Leader by 2015.