Islamic Banking
CIMB Group first with Islamic private banking
By BERNAMA
Mar 28, 2007, 08:23

CIMB Group has scored a first in providing an Islamic private banking service in Malaysia, vying to manage a portion of the more than US$1 trillion (RM3.45 trillion) worth of wealth among Muslims in Southeast Asia and the Gulf.

The full-fledged private banking service based on syariah principles is targeted at high net worth individuals who have more than RM1 million in investable assets and need personalised wealth management services, advisory and investment products conforming to syariah principles, it said in a statement.

The service is available through its private banking unit, said the head of CIMB Private Client Services, Yeoh Keat Seng.

CIMB Islamic group head and chief executive officer Badlisyah Abdul Ghani described the move as a strategic development: "Doing this business is compelling, considering there are more than US$1 trillion (RM3.45 trillion) of wealth among Muslims in the GCC (Gulf Cooperation Council) and Southeast Asia markets.

"Drawing on our strong Islamic banking franchise, we believe we can serve the market's growing demand for investment in syariah-compliant wealth management products."

Yeoh said the time is right to introduce such a service as there is increasing interest among investors, both local and foreign, for Islamic wealth management products including sukuk, equity-linked notes and structured products.

He noted the widespread adoption of Islamic investment products and services, adding: "Evidence of this is seen in the rise of the country's Islamic banking industry which registered RM800 million profits for the first half of last year.

"In addition, total assets of Islamic banking stood at RM122 billion while Islamic corporate bonds stood at RM121 billion, which is about 55 per cent of the total corporate bond market in Malaysia."

CIMB, said Yeoh, has been constantly introducing new investment solutions to meet clients' needs, and Islamic private banking is a key segment that it wants to focus on.

In line with this, he added, the group has introduced a trust and Islamic-based succession service for its clients. - Bernama



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