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Friday, March 11, 2011
Nigeria eyes role as African Islamic banking hub
Qatar bank ban bad for Islamic finance Bank to cut above 100 Spain branches
Barclays’ $110mn ‘lords of earnings’ LONDON: A woman uses a cash point machine at a HSBC bank -Reuters
"Contributions & Achievements of Official Statistics''
SBP roundtable to up official stats awareness Staff Reporter KARACHI: The State Bank of Pakistan (SBP) is organising a one-day seminar on "Contributions and Achievements of Official Statistics'' on 12th March, 2011 in Karachi in order to raise awareness about the statistical system and significance of the official statistics in Pakistan. Asif Bajwa, Secretary, Statistics Division, Government of Pakistan and Riaz Riazuddin, Chief Economic Advisor, State Bank of Pakistan will speak at the inaugural session of the seminar which will get under way at 9:30 AM on Saturday at SBP Learning Resource Centre, Karachi.
Speakers from all major statistical organisations in Pakistan will highlight the significance, methodology and dissemination practices of statistics produced by their organisations at the seminar. The seminar will provide a forum for coordination and interaction among producers & users of statistics. Munir Ahmad Aslam, Deputy Director General, Federal Bureau of Statistics, Habib Ullah Khan, Census Commissioner, Population Census Organisation, Noor Muhammad Dharejo, Agriculture Census Organisation, Shamim Wazir Deputy Chief, Economic Affairs Division, Government of Pakistan , Shahmim Rafique,
Director General, Bureau of Statistics, Punjab Dr Azizullah Khattak, Director, Shamsul Arifeen, Senior joint Director, Rizwan Ahmed, Joint Director of Statistics & DWH Department, SBP will give presentations on different important topics. It may be mentioned here that the Official Statistics plays a vital role not only in understanding the current economic position of a country but is also imperative for the formulation of current and future policies. A wide range of statistical data is being produced by various statistical agencies which are used by the government, international organisations and the general public for research and policy formulation.
ZTBL chief upbeat on growth
Rs14bn/annum set to spur agri GDP growth ISLAMABAD: The federal government will spend Rs14 billion annually in agriculture sector to revive economy, said Zarai Taraqiati Bank Ltd (ZTBL) President Muhammad Zaka Ashraf. He said that the ZTBL as per government directives has been disbursing loans on easy terms focusing specially the development of small farmers as reflected by Benazir Tractor Scheme. Zaka said that Pakistan was an agricultural country and it was vital to develop the agriculture sector for the overall progress of the country. He further said that under Pak-China friendship various initiatives have been taken for the intro-
duction and development of solar energy, LED lights, modern technology and farm practices; which will not only help the farmers to operate their tube wells and save rising electricity cost but also to adopt innovative technology for rapid agriculture growth and these will be implemented soon. "The progress of the country is dependent on economic development and this is achievable largely through agriculture development and ZTBL has been focusing to finance entire value added chain. The good governance and financial management coupled with team efforts has raised the bank's deposit base from Rs1 billion to Rs9 billion, which has
not only improved its financial health but also enabled it channelise more funds for the finance starved agriculture sector," said the ZTBL chief. President ZTBL said, "The Bank is not only financing the agricultural sector but also promoting sports activities and it is worth while to mention that the national women cricket team which won the Asian games has 9 playing members of ZTBL Cricket Team which is an honour for the Bank. He said, it is a moral duty of every Pakistani to play ones vital role for the progress of the country and the nation, so that we could register as an enlightened people in the comity of nations.-APP
Abu Dhabi Islamic Bank rakes in profit ABU DHABI: Abu Dhabi Islamic Bank swung to a profit in the fourth quarter of 2010, beating analysts forecasts as customer deposits and fee income rose. The lender, the second biggest Islamic bank in the UAE, swung to a profit of 250.6 million dirhams ($68.23 million) in the three months to Dec 31, compared to a loss of 623 million dirhams a year earlier. For the year, the company posted a group net profit of 1.02 billion with total assets climbing to 75.3 billion dirhams. The company had reported a net profit of 78 million dirhams
in 2009. Annual revenues increased 22 per cent to 3.07 billion dirhams, with customer deposits rising 17.2 per cent from a year earlier. Group fee and commission income increased 43 per cent in the fourth quarter. "We will continue to take prudent measures, including further impairments in the Burooj Real Estate portfolio," ADIB chief executive Tirad Mahmoud said in a statement, adding that the company expected 2011 to be another year of muted global economic activity. Impairments stood at 749.2 million dirhams at the end of
the year while the Burooj real estate subsidiary resulted in a loss of 196.1 million dirhams for 2010. For the fourth quarter, the company booked credit provisions and impairments of 224.4 million dirhams. The bank's cost to income ratio was 39.5 per cent for 2010 and it expects that ratio to stabilise in 2011 given further investment in growth and revenue increases. In late October, ADIB priced a $750 million Islamic bond, or sukuk, that was over-subscribed 4.8 times with strong demand from Middle East, Europe and Asia.- Reuters
Bahrain Islamic Bank shelves capital hike MANAMA: Bahrain Islamic Bank postponed a planned $143 million rights issue citing market conditions, after Bahrain was hit by clashes between its Shi'ite population and the Sunni-led government. Bahrain Islamic is a small retail bank that said last July it planned to raise about 54 million dinars ($143.2 million) in additional capital. It posted a 2010 net loss of 39 million dinars as it wrote down some property investments and booked impairment provisions. "Due to market conditions that are beyond the bank's control...the bank's board of directors has resolved in its meeting on Sunday 6 March 2011 to postpone the rights issue," it said in the statement. It said the issue that was scheduled to take place between March 9-23 would be completed before the end of June. Last month, Kuwait's Investment Dar, owner of half of luxury carmaker Aston Martin, proposed to creditors a sale of its 40-per cent stake in Bahrain Islamic as part of its restructuring plan. Bahrain has been gripped by the worst unrest since the 1990s after mostly Shi'ites youth took to the streets last month and seven were killed in clashes with police forces and the military. The island kingdom is ruled by a Sunni royal family and its majority Shi'ite population complains of discrimination in jobs and services, a charge the government denies. Bahrain Islamic made no direct reference to the unrest in its statement, but bankers and analysts say the political trouble will make it more difficult for Bahraini banks and companies to raise capital. Ratings agencies have downgraded Bahrain, citing the unrest, and its tourism sector has been badly hit.Reuters
LONDON: New Barclays boss Bob Diamond and his two replacements as head of the investment banking arm were paid 28 million pounds ($45 million) last year, with the trio also receiving shares worth 40 million pounds for past performance. After Britain's banks pledged to show more restraint on pay under a peace deal struck with the government last month, politicians and unions slammed the payouts at a time when public sector jobs and wages are facing cuts. Diamond was paid a bonus of 6.5 million pounds for last year when he was head of Barclays Capital, the investment bank arm, before he became group chief executive officer (CEO) at the start of this year. BarCap's new co-CEOs received bigger bonuses. Jerry del Missier was paid 10.9 million pounds for last year and Rich Ricci received 10.6 million, Barclays said under pay disclosure rules required of UK banks. The trio also received millions of shares under awards for their performances over the last five years.
Diamond received 2.1 million shares under the plans, worth 6.6 million pounds at current prices; del Missier received 5.1 million shares, worth 15.9 million pounds; and Ricci received 5.5 million shares, worth 17.3 million pounds. The awards were net of shares sold to pay taxes and other costs. Stephen Williams, a politician who speaks for the coalition's junior Liberal Democrat party on finance, said the pay award was "obscene." "The bankers collectively should be showing restraint at a tough time for everybody else. It is effectively saying we are in a different universe from the rest of you and we can carry on rewarding ourselves in this way why the rest of you all go and suffer," he told Reuters. The pay deals came at a time of growing divergence between Britain and its bankers over restructuring the industry. Barclays also said 231 of its top staff -- dubbed "Code staff" who are involved in risk-taking decisions -- were paid 504 million pounds for 2010, or an average of 2.2 million each.Reuters
Qatar's QIIB sees sukuk sale in 2011 DUBAI: Qatar International Islamic Bank (QIIB) may issue an Islamic bond in 2011 after receiving shareholder approval for sukuk issuance last week, the bank's deputy chief executive said recently. "The issue is probably going to happen in Qatar this year," Mohsen Moustafa said on the sidelines of a conference in Dubai, adding that any issuance would depend on market conditions. QIIB received approval from its shareholders earlier in March to issue Islamic bonds to boost capital, if required. The Qatari lender is one of four Islamic banks in Qatar expected to benefit from the Qatar central bank's move to abolish Islamic banking branches at conventional banks by the end of the year. Moustafa said the bank is considering buying the Islamic
assets from QIIB's conventional counterparts but no decision has been made yet. "It is one of the issues that has been raised, we will consider it," he said. "There hasn't been enough time to discuss all the options." Moustafa added that the bank would look towards any guidance provided by the central bank to determine how to proceed with the asset purchase. The central bank has provided no clear guidance yet on what conventional banks will need to do with their Islamic operations, although analysts expect the banks to either sell the assets to Islamic lenders or set up standalone Islamic subsidiaries. Moustafa said the directive would be both a challenge and opportunity for Islamic banks.Reuters
BEIRUT: A man uses an ATM at the Lebanese Canadian Bank (LCB) headquarters. -Reuters
SBP reissues old Rs500 banknote warning KARACHI: The State Bank of Pakistan (SBP) has once again advised the general public to exchange the olddesign and bigger-size banknote of Rs500 up to September 30, 2011. According to a press release issued here Thursday, the notes can be changed from the field offices of SBP Banking Services Corporation and the branches of all commercial banks throughout the country up to Sept 30 of the year. It may be recalled that the Federal Government has already notified that the olddesign banknote of Rs500 (introduced in April 1986) will cease to be the legal tender and not exchangeable with effect from October 01 of the year. NNI
NBAD's Islamic repo product soon ABU DHABI: National Bank of Abu Dhabi (NBAD) will launch a sharia-compliant repo product in March to encourage secondary market trading and is in talks with two unnamed counterparties for the same, an official said. The Abu Dhabi lender expects the Islamic repo market in the Middle East and North Africa (MENA) region to be worth about $2 billion, said Sameh Al Qubaisi, general manager for NBAD's institutional and corporate coverage group. "We have finished the documentation for the repo. The legal side is also done. It will be the first Islamic repo," Qubaisi told reporters on the sidelines of a conference. The shortage of shariacompliant liquidity instruments is regarded as a major handicap of Islamic banks, as the religion's ban on interest rules out most interbank money market tools. Repurchase agreements, also termed repos, allow banks to grant extra funds to lend or buy assets, thereby boosting liquidity. Activity in the Islamic bonds market has been muted after several high-profile defaults in the last two years. Dubai's state-owned property firm Nakheel repaid a $4.1 billion sukuk in 2009 after a $10 billion bailout from oil-rich neighbour Abu Dhabi. "After the Nakheel issue, the doubts in the sukuk market have been the talk of the town," Qubaisi said. Separately, the bank is also in talks to create an Islamic Real Estate Investment Trust (REIT), he said without providing more details. The top UAE lender wants to set up an Islamic banking business in Malaysia after its conventional bank unit starts operations there in the thirdquarter, its chief executive said earlier in the day. "We have a conventional licence. If the authorities allow us, we would like to have ... an Islamic licence," Michael Tomalin told reporters. He did not give more details. The lender, largest by market value in the United Arab Emirates, also plans to expand operations in the Middle East and is awaiting banking licences in Lebanon and Syria.-Reuters