Meezan Bank Riba Free Loan. Because it eschews the charging and paying of interest and trading of assets that are non-Shariah compliant or haram, it is considered a more equitable and sustainable form of finance and has also gained popularity outside the Muslim world. On aggregate, the top 10 accounted for 51.3% and 67.7% of combined assets and net profits, respectively.
Malaysia, Saudi Arabia, the UAE, Qatar and Kuwait are the largest markets in terms of the Islamic bank assets, with their aggregate assets representing 79% of the combined assets of the 100 largest Islamic banks. The Islamic banks in Malaysia, including both domestic and foreign Islamic banks, held six out of the top 20 ranks and 16 of the total 100. Notably, the combined assets of all Malaysian Islamic banks accounted for 23% of the 100 largest Islamic banks’ assets.
After Malaysia, Bahrain and Indonesia have the next largest number of Islamic banks at 15 and 13, respectively. However, the aggregate bank assets in Bahrain and Indonesia accounted for only 6% and 2%, respectively. Click to toggle ranking by category "up" and "down". Islamic Bank Rank 2019 Bank Country Assets Net Loans Deposits Shareholder's Equity Net Interest Income Total Operating Income Operating Expenses Operating Profit Net Profit Operating Return on Assets (%) Return on Loan to Deposit Ratio (%) Cost to Income Ratio (%) NII to Total Operating Income (%) Equity to Assets Ratio (%) Capital Adequacy Ratio (%) Loan Loss Reserves to Gross NPLs (%) Gross NPL Ratio (%) Liquid Assets to Total Deposits and Borrowings (%) $million % Change $million % Change Rank $million % Change Rank $million Rank $million % Change Rank $million % Change Rank $million % Change $million % Change Rank $million % Change Rank Equity (%) Assets (%) Tier 1 Total 1 Al Rajhi Bank Saudi Arabia 97,298 6.4 62,393 0.2 72 78,347 7.6 52 12,943 1 3,533 10.2 44 4,625 9.1 46 1,464 4.9 3,161 11.2 35 2,745 12.9 46 3.4 19.9 2.9 79.6 31.6 23.6 13.3 19.1 20.2 342.0 0.95 33.1 2 Dubai Islamic Bank UAE 60,899 7.9 39,742 8.8 51 42,379 5.8 56 8,566 2 1,621 12.7 41 2,233 6.7 56 632 -0.6 1,601 9.9 39 1,362 11.1 48 2.7 16.2 2.3 93.8 28.3 27.4 14.1 16.3 17.5 121.4 3.45 18.2 3 Kuwait Finance House Kuwait 58,515 2.4 30,905 1.8 71 38,791 1.6 64 6,236 3 1,736 18.5 27 2,456 4.6 60 966 -4.1 1,490 11.1 37 868 23.1 35 2.6 13.1 1.5 79.7 39.3 29.3 10.7 15.9 17.5 171.8 2.23 43.3 4 Maybank Islamic Malaysia 54,459 11.2 42,140 7.5 55 41,433 10.9 41 2,534 10 1,012 17.2 30 1,131 20.2 22 412 20.5 719 20.1 29 478 13.7 45 1.4 20.8 0.9 101.7 36.4 10.4 4.7 18.0 22.5 122.0 1.19 18.9 5 Qatar Islamic Bank Qatar 42,088 1.9 28,073 -0.4 76 27,631 -1.2 73 5,334 5 810 3.4 65 1,241 8.6 49 319 5.0 922 9.9 40 725 17.3 41 2.2 13.1 1.7 101.6 25.7 34.8 12.7 17.8 18.8 177.5 1.15 n.a.
42 Al Salam Bank Bahrain 4,536 7.6 2,190 12.1 42 2,805 5.7 57 807 29 102 -9.0 82 152 -9.1 87 74 15.0 78 -24.2 74 49 2.6 62 1.8 6.2 1.1 78.1 48.8 33.0 17.8 18.1 20.6 49.5 7.77 n.a. 43 First Security Islami Bank Bangladesh 4,349 9.6 3,621 13.5 38 3,815 7.1 54 160 72 112 9.6 45 134 12.9 36 69 14.7 65 11.1 36 19 14.7 44 1.5 12.7 0.4 94.9 51.6 17.0 3.7 6.3 10.3 89.5 3.35 n.a.
0.05 20.8 58 Khaleeji Commercial Bank Bahrain 2,257 8.4 869 -7.6 85 1,425 8.3 50 268 56 23 -41.0 91 51 -5.4 81 33 2.4 18 -16.9 73 2 -26.7 73 0.9 0.6 0.1 61.0 64.3 55.1 11.9 15.1 16.2 29.4 21.44 26.2 59 Kuwait Finance House (Malaysia) Malaysia 2,248 1.7 1,352 -0.1 74 1,109 -2.6 79 410 41 45 14.4 37 46 -13.5 90 47 4.8 -0 P->L 90 5 302.4 3 -0.0 1.2 0.2 122.0 100.5 4.0 18.3 25.4 26.6 87.7 4.59 43.6 60 Al Baraka Islamic Bank Bahrain 2,180 -5.1 1,269 -7.9 86 1,686 -4.7 82 215 60 40 1.1 68 87 12.1 37 72 -9.8 15 L->P 82 -18 L->L 92 0.6 -6.9 -0.8 75.2 82.8 54.2 9.9 8.3 9.9 76.6 9.32 14.8 61 Standard Chartered Saadiq Malaysia 1,901 0.9 1,284 -4.2 82 806 2.2 63 161 71 31 -4.0 78 34 -6.2 84 24 -4.4 10 -9.9 66 10 83.0 8 0.5 6.6 0.5 159.2 69.4 9.5 8.5 23.5 27.7 111.0 1.17 29.1 62 Al Rajhi Banking & Investment Corporation (Malaysia) Malaysia 1,833 -12.8 1,209 -11.9 91 1,381 -17.9 91 175 67 42 4.0 61 46 -2.8 78 41 -4.4 5 14.0 33 3 8.1 53 0.2 1.6 0.1 87.6 89.8 9.3 9.6 12.5 20.8 148.3 1.31 12.2 63 Alizz Islamic Bank Oman 1,774 20.0 1,437 20.2 19 1,523 23.6 16 202 63 37 61.8 6 49 53.4 9 41 12.7 8 L->P 82 5 L->P 82 0.5 2.6 0.3 94.4 83.1 24.3 11.4 14.6 15.3 99.2 1.20 15.6 64 Union Bank Bangladesh 1,758 12.5 1,415 18.7 26 1,134 -1.4 74 94 80 48 7.7 52 53 10.7 44 25 21.4 28 2.5 52 11 7.1 54 1.7 12.9 0.7 124.7 47.5 10.6 5.4 8.7 10.2 163.3 0.97 n.a. 65 ABC Islamic Bank Bahrain 1,745 11.9 1,088 15.4 34 107 121.7 5 352 45 34 24.7 15 42 17.6 27 7 -33.6 36 37.4 16 32 25.3 32 2.1 9.5 1.9 1,018.2 15.7 20.1 20.2 32.9 34.0 n.a.
68 Safwa Islamic Bank Jordan 1,581 17.1 1,095 15.5 33 1,311 20.4 21 199 64 46 15.5 35 53 19.6 23 34 7.9 18 49.4 11 12 46.3 16 1.3 6.0 0.8 83.5 64.9 13.1 12.6 25.3 25.5 82.3 2.86 17.3 69 BankIslami Pakistan Pakistan 1,559 -0.9 850 -0.6 77 1,256 11.4 39 108 79 44 19.0 26 53 19.1 24 49 8.7 4 L->P 82 2 -80.8 80 0.2 2.3 0.2 67.7 93.1 17.8 7.0 11.2 15.0 72.5 11.90 37.3 70 Palestine Islamic Bank Palestine 1,104 9.3 680 9.8 48 904 11.7 38 110 77 40 8.6 49 54 8.8 47 38 20.9 17 -11.3 70 15 4.1 61 1.5 14.2 1.4 75.2 69.4 25.8 9.9 12.9 12.8 n.a. 7.97 36.2 90 Venture Capital Bank Bahrain 292 3.3 42 19.8 23 0 n.a. 145.5 91 Al Janoob Islamic Bank for Investment and Finance Iraq 251 8.2 50 20.2 21 15 94.4 6 211 62 1 -66.1 92 7 -49.7 95 6 -34.4 1 -83.4 80 1 -76.3 79 0.3 0.3 0.3 344.3 89.7 86.1 84.3 n.a.
95 Liquidity Management Centre Bahrain 129 -13.9 13 -46.3 95 0 n.a. 100 Citi Islamic Investment Bank Bahrain 15 7.8 14 8.2 53 0 n.a. Source: Asian Banker Research, S&P Global Market Intelligence.
Flashback to 1999 and the depths of the region’s crippling financial crisis; as a management consultant fresh from an economics and accounting degree at the University of Indonesia in Jakarta, Wirjoatmodjo played midwife at Mandiri’s birth as a bank. Today, he is Mandiri’s CEO as well as the chairman of the Indonesian Association of Banks, and is one of the leading technocrats to emerge from the post-dictatorship reformasi movement in the wake of the Asian financial crisis.
The bank had been rescued by the state in 2008, claiming several prominent political scalps in the process and had turned into a $1 billion headache. The development of the world’s fourth-most populous country – of 265 million people – in terms of its industrialization and the ambitions of its growing aspirational middle class are hindered by ailing infrastructure and widespread corruption.
But Bank Mandiri counts as one of Indonesia’s more successful outcomes from that time, alongside the nation’s maturing democracy. In 1998, Wirjoatmodjo, then 25 and just two years out of university, was working as a consultant with the mostly-foreign experts at PricewaterhouseCoopers’ (PwC) financial advisory arm in Jakarta.
As Wirjoatmodjo recalls to Asiamoney in an interview last month, part of his brief at PwC and later at Boston, was to help assess which banks could be restructured and saved, and which should be shut down. IBRA would eventually merge these four as the genesis of a new government-owned bank to be called Mandiri, an Indonesian word suggesting independence.
“I was assigned immediately to Mandiri,” Wirjoatmodjo recalls, “which had just been formed from these four failed state banks, and the government had just injected trillions of rupiah of capital into it. “At the time, the IMF required Mandiri to have outside consultants who would guide the implementation of performance-based projects to assess this recapitalization effort,” Wirjoatmodjo says. Former Boston Consulting partner Roman Scott was Wirjoatmodjo’s team supervisor at that time and speaks warmly of Pak Tiko. Chatib had cut his teeth around the middle of the 2000s when he was an advisor during the first term of Sri Mulyani Indrawati, who is once again Indonesia’s finance minister. At Indrawati’s urging, the corruption-riddled bank was bailed out with $700 million in government support in 2008, just as the global financial crisis of that era was starting to reverberate in Indonesia. Amid allegations of fraud and money-laundering, the bailout turned into a nasty political fight in Jakarta and was used by the opponents of Indrawati’s reforms to mount an attack on the clean-broom finance minister.
Indrawati eventually quit Indonesia in 2010 to become a managing director at the IMF in Washington, until she was called back last year by president Joko Widodo for a second term as finance minister. Indonesia’s regulators were much more professional, he says, specifically drilling down on the background, reputation and viability of the ultimate shareholders of the successful bidder for Mutiara, a largely unknown Japanese firm called J Trust.
“One of the key changes after 1999 was that bank owners realized that they could make a lot of money from the appreciation of their stock price,” he notes. That acquisition, a strategic deal, was hailed in Jakarta as Indonesian interests buying back the farm from foreigners: it’s long been the desire of the government to regain control over Indonesia’s bountiful natural resources as well as the subsequent stages of processing and adding value. When he was appointed CEO last year, Bank Mandiri was feeling the impact of the bursting of Indonesia’s decade-long commodity boom with a pick up in non-performing loans. Wirjoatmodjo blames last year’s weaker profits on slumping commodity prices, which impacted the bank’s loan book and NPLs.
“We are quite optimistic that this year we will have positive growth on our bottom line,” he says, adding that Mandiri interest income is “growing at around 12%” before anticipated provisioning. But when that began to struggle with the commodity cycle downturn and a heavier weight of loans, Mandiri switched its emphasis to the bigger corporate sector and to consumer and retail banking.
Wirjoatmodjo says he is “not happy where we are” but he adds that to compete with BCA, Mandiri has been investing in its digital platforms, which the bank was “slower” to do. Indonesia’s finance minister Indrawati last year told the country’s constitutional court that Indonesians had secreted $250 billion in assets abroad, with some 80% of that in Singapore. Some but not all of it has been repatriated: Wirjoatmodjo tells Asiamoney he believes around Rp700 trillion (or around $53 billion) remains parked in overseas banks, mostly in Singapore. Indonesia is “struggling” to finance much-needed infrastructure projects, the promise of which helped sweep Wirjoatmodjo’s boss, president Joko Widodo, to power in 2014. World Bank president Jim Yong Kim has estimated that Indonesia will need to invest $500 billion over the coming years to meet infrastructure needs. He would also like to see Indonesian state-owned firms listing infrastructural asset-backed securities in Singapore to broaden investor reach and raise funds.
Wirjoatmodjo says the idea is “not necessarily to bring the money to Jakarta but we want to tap into that source of funds to finance Indonesian assets.” That might be a tough sell, with memories of wild swings in the rupiah relatively fresh in investor minds.
