TheStar
KUALA LUMPUR: Bank Islam Malaysia Bhd expects its non fund-based income contribution to grow to 10% by next June, underpinned by growth in its wealth management, investment banking and treasury divisions.
Its managing director Datuk Zukri Samat said the banking group wanted to increase its non fund-based income as revenue contributions from this segment was still very low.
Speaking to reporters at Bank Islam’s investment product launch briefing here on Aug 8, he said: “As of June 2007, our non fund-based income contributes only 5.8% to the bank’s revenue, which is small. But, we expect the contributions to increase.”
The banking group launched its first syariah-compliant fund, known as the An-Najah NID-i, which would invest in health care assets globally, including some of the pharmaceutical giants such as Pfizer Incorporated, Glaxo SmithKline plc and Abbott Laboratories.
Bank Islam had targeted the close-ended fund to have an initial fund size of RM300 million, in which most were expected to be derived from local investors.
“There is enough domestic appetite for us to achieve the initial target,” Zukri said, adding that the banking group is in talks with several clients and have received overwhelming response on this product.
Zukri said Bank Islam chose to focus on global healthcare because the combined factors of longer life expectancy, growing affluence and advancements in treatments for age and lifestyle-related diseases would generate greater demand for healthcare-related products and services globally.
“Demand for such services is expected to be relatively resilient through economic cycles and are necessities to societies,” he said.
Zukri added that Bank Islam is working on launching a few more structured products and unit trusts in the near future, and has plans to market some of these products in the Middle Eastern countries.
Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.
Showing posts with label Bank Islam. Show all posts
Showing posts with label Bank Islam. Show all posts
Monday, August 11, 2008
Thursday, June 5, 2008
Bank Islam to launch wealth management services by Q3
BusinessTimes
BANK Islam Malaysia Bhd plans to introduce wealth management services by the third quarter of this year, and hopes its fee-based income business will grow to 10 per cent next year.
Last year, fee-based income only accounted for about five per cent of the bank's business. Bank Islam also plans to introduce unit trusts, will-writing and other structured products for customers.
"Subject to regulatory approval, we hope to launch the service by September," managing director Datuk Zukri Samat said in Kuala Lumpur yesterday after signing a deal with Amanah Raya Bhd (ARB) to provide will-writing services.
Since its soft launch in January this year, about 2,000 customers have signed up.
Zukri said Bank Islam hopes to generate about RM1.5 million from its will-writing services by the end of this year.
"This partnership is most timely, particularly when Malaysian consumers are becoming increasingly discerning and knowledgeable," he said.
Prior to the launch of its complete wealth management service, the will-writing facility will be marketed as a stand-alone service at all its 90 branches nationwide.
Bank Islam card holders will need to pay a fee of RM200 while non-card holders a fee of RM350 for Muslims and RM500 for non-Muslims. This is because Muslims have a ready template according to faraid (distribution of estate) while non-Muslim will-writing depends on the individual.
According to ARB, will-writing penetration in Malaysia is still low. To date, about 60,000 Muslims and 80,000 non-Muslims have drawn up their wills.
Meanwhile, commenting on Bank Islam's plan to expand in the region, Zukri said the bank wants to focus on the domestic market, where it commands about 20 per cent market share in deposits.
"We are continuously in talks for a regional expansion, but there's nothing solid at the moment. We are keen to expand in Southeast Asia within two years," he added.
Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.
BANK Islam Malaysia Bhd plans to introduce wealth management services by the third quarter of this year, and hopes its fee-based income business will grow to 10 per cent next year.
Last year, fee-based income only accounted for about five per cent of the bank's business. Bank Islam also plans to introduce unit trusts, will-writing and other structured products for customers.
"Subject to regulatory approval, we hope to launch the service by September," managing director Datuk Zukri Samat said in Kuala Lumpur yesterday after signing a deal with Amanah Raya Bhd (ARB) to provide will-writing services.
Since its soft launch in January this year, about 2,000 customers have signed up.
Zukri said Bank Islam hopes to generate about RM1.5 million from its will-writing services by the end of this year.
"This partnership is most timely, particularly when Malaysian consumers are becoming increasingly discerning and knowledgeable," he said.
Prior to the launch of its complete wealth management service, the will-writing facility will be marketed as a stand-alone service at all its 90 branches nationwide.
Bank Islam card holders will need to pay a fee of RM200 while non-card holders a fee of RM350 for Muslims and RM500 for non-Muslims. This is because Muslims have a ready template according to faraid (distribution of estate) while non-Muslim will-writing depends on the individual.
According to ARB, will-writing penetration in Malaysia is still low. To date, about 60,000 Muslims and 80,000 non-Muslims have drawn up their wills.
Meanwhile, commenting on Bank Islam's plan to expand in the region, Zukri said the bank wants to focus on the domestic market, where it commands about 20 per cent market share in deposits.
"We are continuously in talks for a regional expansion, but there's nothing solid at the moment. We are keen to expand in Southeast Asia within two years," he added.
Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.
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