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Last Updated: Sep 25th, 2006 - 11:36:04 |
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“I am pleased to highlight that Kuwait Finance House (Malaysia) Berhad is the first foreign Islamic Bank in Malaysia to be also accorded the Dealer’s Licence from the Securities Commission which enables us to undertake fund management, investment advisory and security services. We have to date obtained 44 product approvals from Bank Negara Malaysia, and over the next three years we hope to open five more branches.” Salam Younis, Managing Director of Kuwait Finance House (Malaysia) Berhad. |
Kuala Lumpur, 22nd September 2006 - Kuwait Finance House (Malaysia) Berhad (KFHMB) a wholly-owned subsidiary of Kuwait Finance House, Kuwait (KFH) and Malaysia’s first foreign Islamic Bank, marked its first anniversary yesterday with the news that the Rating Agency of Malaysia had accorded positive ratings.
RAM has assigned respective long- and short-term general bank ratings of AA2 and P1 to Kuwait Finance House (Malaysia) Berhad (KFHMB). The long-term rating has a stable outlook.
KFH is the second largest bank in Kuwait and one of the largest Islamic financial institutions in the world. RAM views the ownership and implicit support of the Government of Kuwait as highly favourable factors for the Bank.
KFH has established a strong presence and reputation in the Middle East as one of the pioneers in Islamic banking and finance. It has strong affiliations with leading international institutions, and has successfully launched a number of products in alliance with major global banks.
Addressing the media at a briefing session, Mr. K. Salman Younis, Managing Director of Kuwait Finance House (Malaysia) Berhad, highlighted that KFHMB which commenced operations in August 2005, was the first foreign Islamic bank to be granted a licence to operate in Malaysia. It has a universal banking licence that allows it to offer various investment, corporate, commercial and retail banking activities.
KFHMB will act as the regional hub for KFH’s banking activities in this part of the world. This strategic role underpins KFHMB’s position in the larger scheme of things within the folds of KFH. KFHMB is essentially an agent of KFH, although the latter had set up KFHMB as a subsidiary due to regulatory requirements.
In spite of KFHMB being in existence for only one year, KFH’s proven business profile and track record, which are envisaged to play a crucial role in the establishment of KFHMB’s own in the future was emphasised by RAM in its ratings.
The assigned ratings reflect KFHMB’s strong reliance on its parent in terms of its main business model, the franchise built up by KFH in the international market, as well as the funding and business support from the latter thus far.
In its first 14 months of operations as an Islamic bank, KFHMB posted a pre-tax profit of RM1.84 million. The Bank’s returns on equity and assets stood at 0.42% and 0.32%, respectively, as at end-December 2005.
Kuwait Finance House (Malaysia) Berhad later hosted a reception for 350 people consisting of regulators, its corporate clients and business partners. H.E. Mr Abdulhamid Al-Failakawi, Ambassador for the State of Kuwait in Malaysia and Y. Bhg Datuk Zamani Abdul Ghani, Deputy Governor of Bank Negara Malaysia graced the occasion.
Mr. Salman extended his gratitude to the Malaysian Government, Ministry of Finance, the regulatory bodies, namely Bank Negara Malaysia and the Securities Commission for having extended the first foreign Islamic Banking licence to KFHMB. At the same time he thanked the Ambassador of Kuwait in Malaysia and the Government of Kuwait for their support and assistance in the setting-up of Kuwait Finance House (Malaysia) Berhad.
Deliberating on the achievements of KFHMB, Mr. Salman commented, “I am pleased to highlight that Kuwait Finance House (Malaysia) Berhad is the first foreign Islamic Bank in Malaysia to be also accorded the Dealer’s Licence from the Securities Commission which enables us to undertake fund management, investment advisory and security services. We have to date obtained 44 product approvals from Bank Negara Malaysia, and over the next three years we hope to open five more branches.”
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