Malaysia Maybank sees 15 pct rise in Islamic finance

Malaysia Maybank sees 15 pct rise in Islamic finance

Malaysia’s top lender, Malayan Banking Bhd, said on Friday it expects its Islamic financing and deposits to grow 15 percent for the financial year to June 30, 2008.

Most of the growth would come from Islamic term loans to businesses and hire purchase and mortgages, the bank said as it unveiled its new Islamic banking subsidiary.

State-controlled Maybank has total assets of 255.8 billion ringgit ($76.8 billion) as of end-September, of which 23 billion were Islamic assets.

“Growth in Islamic financing has been phenomenal, largely due to the strong support of the government,” Maybank Chief Executive Amirsham Aziz said in a statement.

“It is also well within our plans in the short- to medium-term to see our Islamic banking business expand in terms of geographic frontiers.”

Maybank operates in Asian countries such as Brunei, China, Singapore, Vietnam, Indonesia and the Philippines.

“We see our growth path to be both organic and inorganic, meaning we continue to be on the lookout for value creation opportunities whether by way of strategic alliances or through mergers and acquisitions,” he said.

Maybank said its Islamic unit, Maybank Islamic Bhd, aims to focus on international currency business, Islamic investment banking, and Islamic wealth management.

It will start off with 12 branches.

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