ID :
77112
Wed, 08/26/2009 - 19:45
Auther :
Shortlink :
https://oananews.org//node/77112
The shortlink copeid
ISLAMIC BANKS GROWING DESPITE FINANCIAL TURMOIL
KUALA LUMPUR, Aug 26 (Bernama) -- Islamic banks have continued to grow
in prominence and size despite the financial turmoil which crippled
many large Western institutions late last year.
The Asian Banker in its research said the world's 100 largest wholly Islamic
banks ranked by assets held more than US$580 billion in assets last year, a 66
percent increase from the US$350 billion they held in 2007.
It said the top 10 banks remained largely the same as the ones that
dominated its previous ranking in 2008, with Bank Melli Iran (BMI) still topping
the list and Saudi Arabia's Al Rajhi Bank in second place.
"Iranian banks are still predominantly Islamic banking players, holding
seven out of the top 10 ranks and 12 out of the 100," it said.
The Asian Banker said the Iranian banks also took up around 40 percent of
the world's largest Islamic banks' assets.
The four next-largest markets - the United Arab Emirates (UAE), Malaysia,
Saudi Arabia and Kuwait - each have similar assets sizes compared with one
another, and together carve out nearly another 40 percent of the ranking's
assets combined, with smaller banks in 10 other markets rounding the list.
Average growth rates among the Islamic banks are high, with overall asset
growth of 29.7 percent after removing the anamoly of 12,000 percent growth by
Public Islamic Bank.
Asset growth was lower at the top 10 Islamic Banks at 14.3 percent, although
the 0 percent growth of BMI's assets was another anomaly affecting this group's
performance.
Average net income growth of the top 10 was 29.6 percent, although the top
10 were again brought down by falling net income at six of the top 10 banks.
"Despite this, the high profitability of banks like Al Rajhi Bank, Kuwait
Finance House, Dubai Islamic Bank and Bank Tejarat meant that the top 10 hold at
least 20 percent of total net income generated by the top 100 and possibly
more, considering that net income information for BMI was not available," the
Asian Banker said.
Despite the size of the Iranian banks, Saudi Arabian banks are much more
profitable as the three Saudi Arabian banks in the top 100 Islamic banks
contributed 19 percent of the ranking's total income.
Looking ahead, The Asian Banker said it could already be seen that BMI may
not be the largest bank in the listing for much longer, as it had a mere 0
percent growth rate in 2008.
"This may be due to the European Union freezing the bank's assets, which has
shrunk the bank's lead over Al Rajhi Bank to just four percent from 40 percent
the previous year," it noted.
Considering Al Rajhi Bank's 32 percent change in total assets in the year,
it is likely to overtake BMI in asset size in 2009, it added.
"Furthermore, with a lack of growth in assets of Dubai Islamic Bank and Bank
Maskan, we expect to see a broad shake-up in the rest of the top 10 Islamic
Banks in 2009 as well," it said.
-- BERNAMA
in prominence and size despite the financial turmoil which crippled
many large Western institutions late last year.
The Asian Banker in its research said the world's 100 largest wholly Islamic
banks ranked by assets held more than US$580 billion in assets last year, a 66
percent increase from the US$350 billion they held in 2007.
It said the top 10 banks remained largely the same as the ones that
dominated its previous ranking in 2008, with Bank Melli Iran (BMI) still topping
the list and Saudi Arabia's Al Rajhi Bank in second place.
"Iranian banks are still predominantly Islamic banking players, holding
seven out of the top 10 ranks and 12 out of the 100," it said.
The Asian Banker said the Iranian banks also took up around 40 percent of
the world's largest Islamic banks' assets.
The four next-largest markets - the United Arab Emirates (UAE), Malaysia,
Saudi Arabia and Kuwait - each have similar assets sizes compared with one
another, and together carve out nearly another 40 percent of the ranking's
assets combined, with smaller banks in 10 other markets rounding the list.
Average growth rates among the Islamic banks are high, with overall asset
growth of 29.7 percent after removing the anamoly of 12,000 percent growth by
Public Islamic Bank.
Asset growth was lower at the top 10 Islamic Banks at 14.3 percent, although
the 0 percent growth of BMI's assets was another anomaly affecting this group's
performance.
Average net income growth of the top 10 was 29.6 percent, although the top
10 were again brought down by falling net income at six of the top 10 banks.
"Despite this, the high profitability of banks like Al Rajhi Bank, Kuwait
Finance House, Dubai Islamic Bank and Bank Tejarat meant that the top 10 hold at
least 20 percent of total net income generated by the top 100 and possibly
more, considering that net income information for BMI was not available," the
Asian Banker said.
Despite the size of the Iranian banks, Saudi Arabian banks are much more
profitable as the three Saudi Arabian banks in the top 100 Islamic banks
contributed 19 percent of the ranking's total income.
Looking ahead, The Asian Banker said it could already be seen that BMI may
not be the largest bank in the listing for much longer, as it had a mere 0
percent growth rate in 2008.
"This may be due to the European Union freezing the bank's assets, which has
shrunk the bank's lead over Al Rajhi Bank to just four percent from 40 percent
the previous year," it noted.
Considering Al Rajhi Bank's 32 percent change in total assets in the year,
it is likely to overtake BMI in asset size in 2009, it added.
"Furthermore, with a lack of growth in assets of Dubai Islamic Bank and Bank
Maskan, we expect to see a broad shake-up in the rest of the top 10 Islamic
Banks in 2009 as well," it said.
-- BERNAMA
