Bahrain
Kuwait
Oman
Qatar
Saudi Arabia
UAE
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This has been a big year for Ithmaar Bank, Bahrain's third largest Islamic bank by market value, which has announced plans to integrate its fully owned unit Shamil Bank, an Islamic retail bank, in a bid to improve liquidity and lower its risks.
"The reorganisation will, in effect, turn Ithmaar Bank into an Islamic bank with a retail licence," the bank said of the bold move.
At an EGM on November 4, shareholders approved to increase the authorised capital to $2bn and also approved three capital raising initiatives that will, together, add up to $500m to the bank's capital, thereby increasing shareholder equity to about $1.4bn.
"The shareholder's overwhelming support for the Board's proposals has ushered in a new era for the bank," said Ithmaar Bank chairman Khalid Abdulla Janahi. "Our focus is now on ensuring that the reorganisation and capital raising plans are completed in the shortest time possible."
"When the reorganisation and capital raising initiatives are completed, Ithmaar Bank will have been transformed into one of the region's largest, most efficient retail-focused Islamic banks - and, with the additional capital, we will in a better than ever position to capitalise on the unique opportunities that are being created by the challenging financial climate," he added.
"The reorganisation will, in effect, turn Ithmaar Bank into an Islamic bank with a retail licence," the bank said of the bold move.
At an EGM on November 4, shareholders approved to increase the authorised capital to $2bn and also approved three capital raising initiatives that will, together, add up to $500m to the bank's capital, thereby increasing shareholder equity to about $1.4bn.
"The shareholder's overwhelming support for the Board's proposals has ushered in a new era for the bank," said Ithmaar Bank chairman Khalid Abdulla Janahi. "Our focus is now on ensuring that the reorganisation and capital raising plans are completed in the shortest time possible."
"When the reorganisation and capital raising initiatives are completed, Ithmaar Bank will have been transformed into one of the region's largest, most efficient retail-focused Islamic banks - and, with the additional capital, we will in a better than ever position to capitalise on the unique opportunities that are being created by the challenging financial climate," he added.
Pipe dreams
Posted by TALAL on 20 December 2009 at 18:19 UAE time
With all due respect the list in not only wrong but misleading as well. I agree with Paddy that you need to come up with more meaningful criteria for ranking Banks as this doesn't work at all. When new financial results are out next year at least 3 on the list may end up up the creek without a paddle.
Posted by TALAL on 20 December 2009 at 18:19 UAE time
With all due respect the list in not only wrong but misleading as well. I agree with Paddy that you need to come up with more meaningful criteria for ranking Banks as this doesn't work at all. When new financial results are out next year at least 3 on the list may end up up the creek without a paddle.
Agree with the list
Posted by SG, Kuwait, Kuwait on 9 December 2009 at 09:50 UAE time
I have been working in the corporate banking field for over 5 years now and the banks listed above are quite secure. Choosing randomly and checking the historic audited financials you will see that these banks have been taking adequate provisions over the years unlike banks like Commercial Bank of Kuwait that took extreme sudden provisions making them reporting losses in 3Q of 09 whereas KD100m for the same period the previous year; that goes to show the type of credit they run. As for all the questions Paddy is asking, well an article that answers all those questions might as well be a book cos you are asking for financial analyses of each bank which could easily need 100 pages or so (4 pages each minimum). This report is a morale booster but is based on financials issued by the best international auditors. and, by the way, i do not work in any of those top banks but i intend to.
Posted by SG, Kuwait, Kuwait on 9 December 2009 at 09:50 UAE time
I have been working in the corporate banking field for over 5 years now and the banks listed above are quite secure. Choosing randomly and checking the historic audited financials you will see that these banks have been taking adequate provisions over the years unlike banks like Commercial Bank of Kuwait that took extreme sudden provisions making them reporting losses in 3Q of 09 whereas KD100m for the same period the previous year; that goes to show the type of credit they run. As for all the questions Paddy is asking, well an article that answers all those questions might as well be a book cos you are asking for financial analyses of each bank which could easily need 100 pages or so (4 pages each minimum). This report is a morale booster but is based on financials issued by the best international auditors. and, by the way, i do not work in any of those top banks but i intend to.
Tangible evidence missing
Posted by Paddy, Dubai, UAE on 26 November 2009 at 00:04 UAE time
The report talks about the performance of each bank at a very high level without delving deep into the numbers. For example, what is the net NPL for each bank in comparison with their assets? What is the exposure ratio (total exposure to the risky sectors out of the total assets) of each bank to risky sectors like Credit Cards, Construction & Real Estate etc? What is the recovery position with respect to Credit Card advances? What is the exposure of each bank (especially UAE and Saudi banks) to the Saad and Algosaibi groups? Have they kept aside provisions against these troubled assets? What has each bank done differently to tide over the financial crisis? HAs there been any fresh capital infusion into any of these banks? What is the Capital Adequacy Ratio of these banks? The lack of transparency with regard to reporting in the Middle East financial sector means that the banks may not have fully reported their bad assets. Maybe the report is intended to be a morale booster to the general public and not exactly based on hard facts.
Posted by Paddy, Dubai, UAE on 26 November 2009 at 00:04 UAE time
The report talks about the performance of each bank at a very high level without delving deep into the numbers. For example, what is the net NPL for each bank in comparison with their assets? What is the exposure ratio (total exposure to the risky sectors out of the total assets) of each bank to risky sectors like Credit Cards, Construction & Real Estate etc? What is the recovery position with respect to Credit Card advances? What is the exposure of each bank (especially UAE and Saudi banks) to the Saad and Algosaibi groups? Have they kept aside provisions against these troubled assets? What has each bank done differently to tide over the financial crisis? HAs there been any fresh capital infusion into any of these banks? What is the Capital Adequacy Ratio of these banks? The lack of transparency with regard to reporting in the Middle East financial sector means that the banks may not have fully reported their bad assets. Maybe the report is intended to be a morale booster to the general public and not exactly based on hard facts.
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