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HSBC Amanah to even retail, corporate income |
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Asia -
Islamic Financing
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Source: Shariabanking.net
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Friday, 08 September 2006 |
HSBC Amanah
Malaysia, the Islamic financial services division of HSBC Bank Malaysia
Bhd, wants equal income contribution from its retail and corporate
businesses for a more stable revenue stream.
Managing director Mohamed Ross Mohd Din
said at present the corporate to retail ratio was 70:30 and the bank
hoped to level it to 50:50 in the next few years.
“When we launched HSBC Amanah in Malaysia more than 10 years ago, the
emphasis was more on corporate and not much focus was given to the
retail segment. The ratio between the two then was 90:10.
“We want the retail and corporate business segments of the Islamic
financial division to match what HSBC Bank has in similar segments. By
further venturing into the retail mass market, it will help the bank
have a good sizeable annual and stable income, moving forward,'' he
said during an interview.
According to Ross, in terms of total Islamic banking assets, HSBC is
the fifth or sixth largest bank in the country and probably the top
foreign bank in this category.
As at June 2006, HSBC has total assets worth about RM38bil, of which about RM5bil comprises Islamic banking assets.
He expected HSBC Amanah's revenue contribution to the bank's overall net operating income this year to also rise.
Last year, the division contributed about 7.5% to the bank's overall
net operating income and Ross hoped this year's contribution to surpass
10%.
To achieve this figure, he said the bank would be rolling out more products, both savings and financing- based.
On the financing side, Ross said the current best seller or flagship
product was Amanah personal term financing, which was expected to be a
major contributor to its retail business in the next six to eight
months.
The bank will also be launching by the fourth quarter a new savings product that it hopes will do well in the market.
Ross added that the bank was confident it was well positioned to face
any form of competition in the Islamic financial services arena and
attributed this to the global HSBC Amanah brand name.
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Last Updated ( Sunday, 07 January 2007 )
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