WIEF-AFF RoundtableTokyo
26 May 2015

Table of Contents
Introduction
2
Islamic
Finance …………………………………………………………………………
in Malaysia
About Maybank Islamic ……………………………………………………………

8

Connecting Japan & ASEAN through Islamic Finance.…………

15

Basics of Islamic Banking

By definition in the Islamic Banking Act, 1983 -“Islamic banking” means banking business whose aims and operations do not
involve any element which is not approved by the Religion of Islam.
For us in Malaysia, we are guided by the clear regulation of the Islamic Banking
Act 1983. Governed by both key regulators i.e. Bank Negara Malaysia (BNM)
and Security Commissions (SC).
Key elements in Islamic Banking :

1.
2.
3.

Prohibition of Usury - interest (Riba);
Prohibition of Ambiguity (Gharar);
Prohibition of impermissible activities such as gambling, selling of liquor,etc.

3Milestones of Islamic Banking in Malaysia
Rapid growth - accounting for almost [29]% of domesticbanking assets; products offering at par with conventional;
growing number of domestic and foreign players
As an alternative banking, offering ofplain-vanilla deposit and financing
products

 Banks with Islamicbanking windows
allowed toconvert to Islamicbank BNM’s Financial
Sector Blueprint
2011-2020 –“Internationalisationof Islamic Finance”

 Maybank Islamic Maybank the firstcommenced
to offer Islamic
operations as Islamic Pilgrimage Fund
window
 Issuance of 3
subsidiary
Board /Tabung
foreign Islamic
Haji was formedbank licenses
 BNM further
 BNM allowed theliberalised theprovision of
Financial Sector
 Establishment Islamic banking(issuance of 2
 BNM launchedthrough “window”
of Bank Islam
new Islamic
Malaysia
operations(1st Islamicbanking licenses;
InternationalBank)
increase foreign
Islamic Financial
ownership toCentre (MIFC) and70%; andreleased new Parliament passed
creation of Mega
guidelines,
IBA, 1983
Islamic bankincludingincentives

 Islamic Financial
Services Act 2013
came into force.

 SC launched theSustainable andResponsible
Investment (SRI)
Sukukframework4Six Main Pillars Behind Malaysia’s Success Story in Islamic
Banking●

Sound legal and regulatory framework●

Strong vision and support from the central bank and government●

Wide range of products & services with certain key added advantage in tax andliquidity●

Conducive and clear Shariah framework●

Large number and diversified Islamic Finance players (local & foreign)●

Human capital development

5Malaysia’s Banking Industry:
Islamic Banking Growth Outstripping Conventional Banking
Islamic financing will account for 40% of total financing in2020 according to Bank Negara Malaysia
2,000
Share of Islamic finance of total financing (2010 vs. 2020)
Conventional

2010

Islamic

ASSETS
25%

1,600

20%

1,200

15%

800

10%

400

5%

2020
29%

40%
71%

Islamic
Contribution(RHS)
Conventional(RM Bil)
Islamic (RM Bil)

Islamic CAGR: 18%
0% Conv. CAGR: 9%60%
02008 2009 2010 2011 2012 2013 2014

DEPOSITSLOAN & FINANCING

1,400

30%

1,200

25%

1,000

20%

800

15%

600

10%

400

5%

200

Islamic
Contribution(RHS)
Conventional(RM Bil)
Islamic (RM Bil)

Islamic CAGR: 17%
0% Conv. CAGR: 7%02008 2009 2010 2011 2012 2013 2014

Source: BNM

1,200

30%

1,000

25%

800

20%

600

15%

400

10%

200

5%

0

0%
2008 2009 2010 2011 2012 2013 2014

Islamic
Contribution(RHS)
Conventional(RM Bil)
Islamic (RM Bil)

Islamic CAGR: 21%
Conv. CAGR: 8%

6

Table of Contents
Islamic Finance in Malaysia……………………………………………………… 2
About Maybank Islamic ……………………………………………………………

8

Connecting Japan & ASEAN through Islamic Finance.…………

15

The Maybank Group: In Summary
A Globally Recognized Financial Services Group
Our Leadership Position

About the Maybank Group Led by Maybank Islamic Berhad, the Islamic banking subsidiary of Maybank: Malayan Banking Berhad (“Maybank”) and its subsidiaries(“Maybank Group”) is the biggest financial services group in
Malaysia and the 4th largest in South East Asia.
 With over 54 years of growth, the Maybank Group offers
various innovative financial services from commercial banking
to investment banking (including stock broking), from global
markets (treasury) to insurance and offshore banking.

Selected International Awards & Recognitions
Ranked 17th strongest in the world for 2014,
evaluated based on capital strength, asset
quality, strong reserves as well as deposit andfunding strength. Maybank is the first andonly Malaysian bank in the list, for 2
consecutive years (2013 and 2014).
Maybank is ranked #103 in the world by The
Banker Top 1000 World Banks 2014, firstamong all Malaysian banks.

Islamic Finance
Leadership Largest Islamic finance provider in Malaysia and Asia-Pacific.
 3rd largest Islamic bank globally by assets (approximately USD38.0

billion).
 “Islamic first” philosophy drives Maybank’s strategy to deliver Shariah-

compliant financial solutions.

LargestFinancial
Service Provider
in Malaysia

An Emerging
Regional Leader
with Global
Presence
Strong Financial
Position

Maybank is ranked #326 in the world byForbes Global 2000 Leading Companies 2014,
the highest among all Malaysian banks.

 Largest bank in Malaysia: Both conventional and Islamic

 Most valuable company with largest market cap on Malaysia’s stock

exchange, Bursa Malaysia with MYR87.3 bil (USD24.5 bil) (27 April 2015)
 402 branches and 2,604 ATMs serving more than 12 million customers
 #1 Internet banking with 35% market share One of the Top 5 Banks in ASEAN
 Presence in: 10 ASEAN countries and 5 international financial centres

 Over 2,400 branches and offices in 20 countries serving more than 22

million customers worldwide
Total Assets
Shareholders’ Funds
PATAMI
Market Capitalisation: USD182.9 bil (MYR 675.4 bil) (31 December 2014): USD15.6 bil (MYR57.6 bil) (31 December 2014): USD2.05 bil (MYR7.6 bil) (31 December 2014): USD24.5 bil (MYR87.3 bil) (27 April 2015)

 48% owned by Permodalan Nasional Berhad (Malaysia’s largest fund

StrongShareholder
Support andCredit Ratings

management company) and its funds and 12% by Employees Provident
Fund (Malaysia’s largest retirement fund) Foreign shareholding: 23.0%
 Strong credit ratings, on par with sovereign
S&P : AMoody’s: A3
Fitch : A-

Maybank Global Banking

ClientCoverage

Investment
BankingGlobalMarkets

Corporate
Banking

Page 8Transaction
Banking

International
Strategy andOperations

The Maybank Group: Regional Presence
Our regional presence is anchored in ASEAN
Maybank Philippines Inc (MPI)PT Bank Internasional Indonesia

 Set up in 1997 when Maybank acquired

 Established in 1959, with a market

Republic Planters Bank. Full-service
commercial bank offering a wide arrayof financial solutions geared towards
the upscale consumer and selected
segments of top-tier corporations

capitalisation of IDR18.5 trillion(USD1.45 billion) and total assets of
IDR140.7 trillion (USD11.05 billion),
BII serves 4.2 million customers

 One of Indonesia’s largest bankswith a branch network
branches and 1,459 ATMsof

Greater China

413

Hong Kong

Laos AsiaMoney Award Best Domestic FX

provider for innovative FX products
and structured ideas in Indonesia,
Best Domestic FX provider of SingleBank Electronic Trading Platform inIndonesia, Best Domestic FX Providerof FX Prime

Cambodia
VietnamSingapore

operation since 1962 and providing
comprehensive
wholesalebanking
solutions Maybank Shanghai is a full-service
branch providing wholesale banking
solutionsdenominatedin
both
Renminbi and foreign currency (mainly
USD) Third branch in HK & GC was set up in
Beijing in 2012acquired up to 99.96% of MPI andbecame the first foreign bank to havealmost 100% ownership stake in a
Philippine commercial bank under the
new Philippine banking law. At thetime of its inception, MPI was the firstforeign bank to have established an
extensive network of branches all overthe country

 Today,
Indonesia

Maybank Hong Kong &Greater China

 Maybank Hong Kong has been in

Philippines

 In August 2000, Maybank successfully

Maybank
maintainsanextensive network of 79 branches
strategically located in key cities
nationwide

Maybank in Indochina

Maybank Singapore

 Cambodia - 16 branches. Achieved local

 Established in1960 as a fully-licensed commercial bank,with over 1,400 employees and 22 branches

incorporation in April 2012 to expand
network

 Achieved Qualifying Full Bank (QFB) status in 2001

 Vietnam – 2 branches; and 20% stake in Over SGD26.3 billion (USD20.18 billion) in assets, and Laos – Retail and commercial banking

SGD17.5 billion (USD13.43 billion) in loans

 32 strategically located ATMs and 140 over QFB shared ATMs
 1st and only bank to receive all four business excellence
certifications at an enterprise level from SPRING Singapore

Page 9An Binh Bank (145 branches)

license granted in October 2012, firstbranch in Laos Myanmar – A representative office, andfirst Malaysian bank to be awardedbanking license, in October 2014

Maybank Islamic: ASEAN’s Largest Islamic Finance Provider
Harnessing the Maybank Group’s “Islamic First” Strategy
 The Maybank Islamic Banking Group is the Islamic banking arm of the Maybank Group Driven by the Maybank Group’s “Islamic First” philosophy to deliver Shariah-compliant solutions

Our Market Leadership Market share dominance in
Malaysia: 32.7% (as at
December 2014) leading
Maybank Islamic, more than 20 local &foreign-based
financial
32.7%
institutions
Others,67.3%

Serving > 22 million

customers in South East Asia
LondonOur Global Presence Largest
Islamic
financeprovider in Malaysia andAsia-Pacific 3rd largest Islamic
globally by asset size

Market Share
Source: Bank Negara Malaysia
Monthly Statistical Bulletin
December 2014bank

 Total assets recorded at
RM146
billion(USD42billion) (as at December2014). 17% total assets
growth y-o-yWide Presence & Strong Fundamentals
 Malaysia: 16 dedicated branches and co-located across all
399 Maybank branches Region: 28 dedicated branches and 273 windows acrossSingapore, Indonesia, London, Labuan, Bahrain and HongKong.
1,558.1
462.0

697.9

952.8

1,190.1

Malaysia
LabuanSingapore
Indonesia

Awards & Accolades
The Banker’s Islamic Bank of the YearAwards 2014
 Global Islamic Bank of the Year Islamic Bank of the Year (Asia Pacific)
 Islamic Bank of the Year (Indonesia)

The Asset Triple A Awards
 Best Islamic Bank of the Year 2014
 Best Islamic Retail Bank & Trade
Finance 2012, 2013 & 2014
 Best Islamic Project Finance House
2013 & 2014
 Industry Leadership Award – Islamic
Banker of the Year 2013

1,393.4

12%

Hong Kong

Bahrain

PBT growthof 12% y-o-y

Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14

Page 6

Reader’s Digest Trusted Brand Awards 2014
 Islamic Financial Services Category(Gold Award)
Global Finance Magazine Awards
 World’s Best Islamic Financial Institutions(Asia, Malaysia & Singapore) 2013 & 2014
 World’s Best Islamic Financial Institutions(Asia & Malaysia) 2012
Alpha South East Asia Awards 2013
 Best Islamic Finance Bank (Malaysia)

World’s Third largest Islamic bank by assets and Top 3 Sukuk
house
Total Assets

Total Shariah-Compliant Assets (Dec 2014)

USD bil

MYR bil

Maybank Islamic’s
Market Share (%)

Maybank
Islamic

42

146

-

Malaysia2

139

487

30% (2013: 28%)

Global1

1,391

4,865

3% (2013: 3%)

Maybank

Sukuk
 In the Sukuk space, Maybank Group has consistently
remained the top 3 underwriter on the Bloomberg
Sukuk League Table.

Rank

Mkt
Share(%)

Amount(USD Mln)

Issues#3

9.9

4,593.58

98

 For the financial year ending 2014, Maybank captured
9.9% of the global market share for Sukuk issuances
amounting to over US$ 4.6 billion through 98 issuances.

AmountIssues(MYR Mln)
14,047.88
94

 For the Malaysian Ringgit Sukuk Market, Maybank
strengthened its position as the top two underwriters
in FY14 with 22.7% of the market share amounting toalmost MYR 14 billion through 94 issuances.

FY2014 MYR Sukuk League3
Mkt
Share(%)#2
22.7

Underwriter Rank
Maybank The growth supersedes the global Islamic finance
growth rate of 9.8% during the same period resulting in
healthy expansion of market share domestically andglobally.
 In the domestic market, Maybank Islamic contributed
30% to the local Islamic banking industry, leading morethan 20 local & foreign-based financial institutions thatoffers Shariah-compliant banking.

FY2014 Global Sukuk League3

Underwriter As at end December 2014, Maybank Islamic is theleading ASEAN Islamic bank with total assets recorded
at RM146 billion (USD42 billion), a y-o-y increase of
10.3% in USD term and 17.1% in MYR term.

Notes: Currency rate as at Dec 31, 2014 (USD1=RM3.4955 (Balance Sheet) or 3.2720 (Income Statement) while as at Dec 31, 2013 (USD1=RM3.2835 (Balance Sheet) or RM3.1504 (Income Statement)
Source: 1. www.thebanker.com; 2. BNM, Monthly statistical bulletin, Dec 2014 ; 3. Bloomberg

11

Maybank Islamic: Awards and Accolades
Recognized as pioneer and leader in Islamic finance
2014

2014
Anugerah Pilihan Pengguna- Persatuan Pengguna Islam
Malaysia Perbankan Islam Mesra Pengguna
Kuala Lumpur Islamic Finance Forum 2014 Awards
 Most Outstanding Islamic Investment Banking
PNB Corporate Excellence Awards 2014
 PNB Islamic Initiative Award

Global Finance Magazine Awards 2014
 Best Islamic Financial Institution in Asia, Malaysia andSingapore
The Asset Triple A Awards 2014
 Islamic Bank of the Year
 Best Islamic Bank – Malaysia
 Best Islamic Retail Bank – Malaysia
 Best Islamic Trade Finance Bank – Malaysia
 Islamic Deal of the Year, for International Islamic
Liquidity Management Corporation US$490 million sukuk(US$2 billion programme), in which Maybank Islamic has
acted as the primary dealer.
 Best Islamic Structured Financing / Best Local Currency
Sukuk - Highly Commended, for Lembaga Tabung Haji
Property Holdings £225 million Islamic commodity
murabaha term financing facility, in which Maybank
Islamic has acted as the shariah adviser and arranger
The Banker's Islamic Bank of the Year Awards
 Islamic Bank of the Year in Indonesia
 Islamic Bank of the Year in Asia-Pacific Global Islamic Bank of the Year
Asiamoney Best Islamic Bank Awards 2014
 Best Islamic Bank in Malaysia
Reader’s Digest Trusted Brand Awards 2014
 Islamic Financial Services Category (Gold Award)
Financial Times Global Private Banking Awards 2014
 Best Private Bank for Islamic Services (Global)

2013
Islamic Business & Finance 2013
 Best Commercial Bank (Asia)
The Asset Triple A Awards 2013
 Industry Leadership Award – Islamic Banker of the Year,Best Islamic Retail Bank & Trade Finance, Malaysia, Best
Islamic Project Finance House
Global Finance Magazine Awards 2013
 World’s Best Islamic Financial Institutions 2013 (Asia,
Malaysia & Singapore)
Alpha Southeast Asia Award 2013
 Best Islamic Finance Bank (Malaysia)
International Finance Magazine 2013
 Best Islamic Bank (Malaysia)
Financial Times Global Private Banking Awards 2013
 Best Private Bank for Islamic Services (Global)
Islamic Finance News Awards 2013
 UK Deals of The Year
Page 15

Table of Contents
Islamic Finance in Malaysia……………………………………………………… 2

About Maybank Islamic ……………………………………………………………

8

Connecting Japan
Japan &
& ASEANASEAN throughthrough Islamic
Islamic Finance
Finance.…………
Connecting

15

How Maybank Islamic Sees the Future: Cross-Border and
ASEAN-Japan Connectivity

Private & Confidential

Improving G-to-G economic
coordination. Great potential
for business opportunities

 Improving investments and trade
between Japan and
Malaysia/ASEAN. Japanese
corporates seeking new geographies
for capital growth Corporates looking for a trusted
link to investment opportunities in
ASEAN
 Sovereigns/investors seeking todiversify their portfolio which
presents an opportunity to invest in
Shariah-compliant assets

 Robust economic growth Emerging global investment
destination.

THE MAYBANK ISLAMIC PROPOSITION
1. DISTRIBUTION NETWORK
Excellent distribution capabilities in
ALL ASEAN. We are the leading Islamic
Bank in ASEAN (Malaysia, Singapore,
Indonesia, Philippines…)
2. GATEWAY FOR JAPANESECORPORATES TO INVEST IN ASEAN
Linking Japanese investors/corporates
to invest in ASEAN assets or build
business in ASEAN/Malaysia

14

THANK YOU