World’s Best Islamic Financial Institutions 2013: Country Winners

Algeria Banque Al Baraka D’Algérie
Bahrain Al Baraka Islamic Bank Bahrain
Bangladesh Islamic Bank Bangladesh
Brunei Darussalam Bank Islam Brunei Darussalam
Egypt Faisal Islamic Bank of Egypt
Indonesia Bank Muamalat Indonesia
Jordan Jordan Islamic Bank
Kazakhstan Al Hilal Islamic Bank
Kuwait Kuwait Finance House
Lebanon Al Baraka Bank Lebanon
Malaysia Maybank Islamic Berhad
Nigeria Jaiz Bank
Oman BankMuscat Meethaq
Pakistan Meezan Bank
Qatar Qatar Islamic Bank
Saudi Arabia Al Rajhi Bank
Singapore Maybank Singapore Islamic Banking
South Africa Al Baraka Islamic Bank
Sudan Faisal Islamic Bank of Sudan
Turkey Kuveyt Türk
United Arab Emirates Abu Dhabi Islamic Bank
United Kingdom Bank of London and the Middle East
United States American Finance House Lariba


Banque Al Baraka D’Algérie

Last year saw Banque Al Baraka D’Algérie roll out a new microfinance facility in the oil- and gas-rich country. It also launched new takaful services and an ijarah (rental payment) service. New savings products are planned this year, as well as financing solutions that should benefit small enterprises. A range of e-banking services is scheduled for launch, as are new branch openings. Growing customer deposits saw the bank’s total assets increase by 5% to $1.8 billion. Net income in 2012 remained robust at $54 million.

Mohamed Seddik Hafid, board member & general manager


Al Baraka Islamic Bank Bahrain

According to Al Baraka, the Bahrain economy started to show signs of recovery in 2012. Many new infrastructure projects are planned for 2013. Last year, Al Baraka Islamic Bank Bahrain saw assets and total financing and investments contract. However, for the Al Baraka Bank as a whole, net income in 2012 increased by 11% to $235 million. Total assets also rose by 11%, and total financings and investments by 21%. Net operating income for the group reached $422 million, an increase of 23% on 2011 levels.

Adnan Ahmed Yousif, member of the board of directors, president & CEO


Islami Bank Bangladesh

Among private-sector banks in Bangladesh, Islami Bank boasts the largest branch network, with 276 branches. It was the first Islamic bank in Southeast Asia. Total operating income in 2012 was 24 billion taka ($307 million) and profit before tax was 12.1 billion taka. Cash flow from financing and investment activities demonstrated healthy growth in 2012. The local ratings agency, CRISL, affirmed the bank’s long-term AA+ rating in June last year, pointing to its good asset quality, financial performance, liquidity and wide operational network.

Mohammad Abdul Mannan, managing director


Islamic Bank Brunei Darussalam

Bank Brunei Darussalam, which had total assets of $4.6 billion in 2012, is Brunei’s largest bank and the flag-bearer for Islamic finance in the Sultanate. It benefits from a majority government shareholding and strong asset base, with a capital adequacy ratio of 26%. It provides a range of Islamic financial services and was co-lead manager in landmark transactions such as Indonesia’s $1 billion sukuk issuance in 2011.

Javed Ahmad, managing director


Faisal Islamic Bank of Egypt

Market participants hope that Egypt will become a major hub for Islamic finance, but that could take some time, as political unrest continues to plague the country. In the meantime, Faisal Islamic Bank continues to set the standard for Islamic banking in Egypt. In 2012 the bank’s net financing and investment balances increased by 21% on 2011 levels to reach 37.3 billion Egyptian pounds ($5.3 billion). Business volumes increased 17% on 2011 levels, to 41.2 billion Egyptian pounds.

Mohamed Al-Faisal Al Saud, chairman of the board


Bank Muamalat Indonesia

This year started with much anticipation surrounding Bank Muamalat’s plans to sell $73 million in sukuk to help finance branch expansions. The bank already boasts approximately 500 branches throughout Indonesia. It plans to issue a total of 1.5 trillion rupiah ($159 million) in Islamic bonds over the next few years to boost lending.

Arviyan Arifin, president director


Jordan Islamic Bank

JIB is the market leader in Islamic banking in Jordan. In April, Fitch affirmed JIB’s long-term issuer default rating of BB- but revised the outlook to negative, owing to pressures on the sovereign rating. In spite of this, the ratings agency pointed out, the bank had ample liquidity and capitalization and boasted a solid domestic franchise. Total deposits grew 3.3% in 2012 to $4.2 billion. Financing and investments grew by approximately 38% to reach $3.5 billion. Net income rose 29% to $51.4 million.

Musa Shihadeh, vice chairman, CEO and general manager


Al Hilal Islamic Bank

Al Hilal officially opened its doors as Kazahkstan’s first Islamic bank in 2010. It is a subsidiary of Al Hilal Bank in the UAE, which is owned by the government of Abu Dhabi. It was initially established to focus on large infrastructure projects and public companies, but it also plans to roll out personal banking products. The bank was encouraged to enter the Kazakhstan market after the government instituted laws promoting Islamic finance in 2009.

Prasad Jose Abraham, chairman of the management board


Kuwait Finance House

As part of a new two-year restructuring plan, KFH will focus on operations and risk management to ensure it maintains its reputation as a trusted Islamic bank, as well as achieving profitability goals for its shareholders and depositors. The bank will augment its position in retail banking through new and enhanced products. KFH also plans to increase its share in the corporate space. Total revenues for 2012 increased by 7% over 2011 to 932.8 million Kuwaiti dinar ($3.3 billion). Net profit was 87.7 million dinar. The bank’s NPL ratio declined from 9.3% to 5.7%.

Mohammed Sulaiman Al-Omar, chief executive


Al Baraka Bank Lebanon

Against a challenging economic and political climate in Lebanon and neighboring Syria, Al Baraka Lebanon’s 2012 performance seems even more remarkable. The bank’s total assets rose by 25% in 2012 to $301 million. Financing and investments increased by a substantial 45% to $198 million. Total operating income, including fees and commissions, reached $10 million, an increase of more than 60% on 2011 levels. The gains made in operating income were enough to counteract the effect of rising expenses and saw the bank record a small net profit in 2012, after reporting an operating loss in 2011 and in previous years.

Mutasim Mahmassani, board member and general manager


Maybank Islamic Berhad

Maybank is the largest Islamic bank in Malaysia in terms of total assets and market share. On the back of strong growth in financing assets, cash and short term funds, the bank’s total assets rose by 15.9 million Malaysian ringgits to 91.4 billion ringgits in 2012. Total customer deposits stood at 71 billion rinngits ($23.4 billion) in 2012, compared to 58.7 billion ringgits in 2011. The bank’s performance benefited from loan growth in its core markets and a healthy deal pipeline on the investment banking side of the business.

Muzaffar Hisham, CEO


Jaiz Bank

Jaiz Bank, the first Islamic bank in Nigeria, was granted a license to provide “noninterest” banking by the central bank in 2011. It commenced operations in January 2012 and has branches in Abuja Federal Capital Territory, Kaduna, Kano, Maiduguri and Gombe. The Islamic Development Bank is one of 3,000 shareholders in Jaiz, and will provide the bank with technical assistance as it looks to expand its network. Jaiz estimates that half of Nigeria’s population of 155 million are interested in noninterest banking services. Its vision is to become the leading Islamic financial services provider in sub-Saharan Africa.

Hassan Usman, acting managing director


BankMuscat Meethaq

Islamic finance is relatively new to Oman, with Islamic windows having been introduced only in 2012. BankMuscat was the first firm in the sultanate to introduce shariah-compliant financial products. It did so via its Islamic window, Meethaq. Meethaq will offer deposit and financing solutions aimed at the consumer and corporate sector as well as takaful. The bank has appointed a shariah board and allocated 150 million rials ($390 million) in capital for the Meethaq Islamic Banking window.

Sulaiman Al Harthy, group general manager–Islamic banking


Meezan Bank

Meezan Bank, Pakistan’s first and largest Islamic bank, is spearheading initiatives in the Pakistani market to standardize FX and interbank musharakah (an enterprise or structure that allows for profit/loss sharing) agreements among Islamic banks and conventional banks with Islamic windows. The announcement was made after Meezan called a meeting of shariah scholars in Karachi in April. In 2012 the bank recorded growth in all business segments, with a net profit for the year of 3.5 billion rupees ($35 million).

Irfan Siddiqui, president & CEO


Qatar Islamic Bank

According to Fitch Ratings, QIB is the largest Islamic bank in the country. It accounted for 36% of total Islamic banking assets at the end of the first half of 2012. The bank enjoys close ties with the Qatari government and boasts a network comprising 35 branches. Its asset quality ratios and capitalization compare well with those of its peers, says Fitch, although it has a high concentration of exposure in the real estate sector. Net profit in 2012 reached 1.24 billion riyals ($340 million), and total assets increased by 26%.

Bassel Gamal, CEO


Al Rajhi Bank

Announcing its 2012 results, Al Rajhi Bank said it had the highest net profit among Saudi banks. Net profit increased by 7% on 2011 levels to 7.9 billion riyals ($2.1 billion). Return on average equity was 22.5%. The bank has an extensive presence throughout the kingdom, with 467 branches and thousands of ATMs. The bank attributes its sustainable profitability to efficient operations and development of banking and investment resources.

Suliman Azzabin, CEO


Maybank Singapore Islamic Banking

Singapore is one of Maybank Islamic Berhad’s three core markets. It offers a wide range of Islamic banking products to the Singapore market and recently introduced two new shariah-compliant products for financing commercial, industrial and residential property. Last year Maybank Singapore Islamic Banking secured the first profit-rate-swap deal with a Singapore conglomerate.

Mohd Ismail Hussein, Maybank Singapore head of Islamic banking


Al Baraka Islamic Bank

As the only fully-fledged Islamic bank in South Africa, Al Baraka is part of the larger Bahrain-headquartered Al Baraka Group, which is committed to bringing ethical banking to countries within Africa and the Middle East. As of December 31, 2012, the bank had 3.7 billion rand ($420 million) in assets under management and a deposit base worth 3.2 billion rand.

Shabir Chohan, CEO


Faisal Islamic Bank of Sudan

As the first Islamic bank in Sudan, FIB has had a profound impact on the development of Islamic finance in Sudan. Its success paved the way for the establishment of other Islamic banks. In recent years the bank has seen double-digit percentage growth in assets, deposits and income and a 40% return on equity.

Ali Omer Ibrahim Farah, general manager


Kuveyt Türk

Kuveyt Türk benefits from a majority ownership by Kuwait Finance House, which is one of the largest and best-known Islamic banks in the world. Liquidity Management House for Investment (LMH)—the investment bank subsidiary of Kuwait Finance House—and Kuveyt Türk, participated in Turkey’s landmark sovereign sukuk, worth $1.5 billion last September. Profit increased by 28% on 2011 levels to $139 million.

Ufuk Uyan, CEO


Abu Dhabi Islamic Bank

ADIB posted a net profit of 1.5 billion dirhams ($408 million) last year. To preserve growth, the bank successfully raised$1 billion in Tier 1 capital in November last year by issuing a sukuk. It boasts an extensive branch and ATM network throughout the UAE. Total assets in 2012 stood at 85.7 billion dirhams. It continues to build its share of customer deposits.

H.E. Jawaan Awaidha Suhail Al Khaili, chairman


Bank of London and the Middle East

BLME is the largest independent Islamic bank in Europe. In 2012 it participated in the first renewable energy deal in the UK funded by Islamic finance, launched an asset-based lending offering to support SMEs and acted as co-lead arranger on a murabaha financing agreement for a biodiesel plant in the UK.

Humphrey Percy, CEO


American Finance House Lariba

American Finance House Lariba describes itself as a community-owned, interest-free and shariah-compliant finance company. It provides a range of Islamic products and services, including business finance, trade finance and equipment financing. Founder and shariah supervisor, Yahia Abdul Rahman, formerly of Egypt, has served on various Islamic associations and councils across the country.

Mike Maguid Abdelaaty, president

alt World’s Best Islamic Financial Institutions 2013: