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| HSBC Amanah |
HSBC Amanah continues to be the dominant global Islamic finance institution, providing wholesale, commercial and retail Islamic banking across Asia, the Middle East and Europe.
The bank’s revenue grew 19% in the first 10 months of 2011, with assets up 11% and operating profits up 8% on the same period in 2010. Global Islamic retail deposits were up 18% during this period and HSBC Amanah retail banking now serves more than 1 million customers.
The firm has been behind some of the most important and innovative deals of the year, including the HSBC Middle East sukuk, a deal whose structure has been replicated by other banks. This sukuk wins Euromoney’s most innovative Islamic finance deal award. HSBC was also instrumental in the Axis financing in Indonesia, which wins the Islamic finance deal of the year award.
HSBC Amanah is one of the top bookrunners in the sukuk market, being involved in most of the main dollar-denominated sukuks of the year, while also gaining leadership over rival international firms in Malaysian ringgit and Saudi riyal deals.
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Mukhtar Hussain, HSBC: best international Islamic bank |
Take the Government of Malaysia’s $2 billion dual-tranche sovereign sukuk. Or the ringgit issuance by National Bank of Abu Dhabi, or HSBC’s bookrunning of Jeddah-based Bank Al Jazira’s SR1 billion ($270 million) sukuk al istithmar. Bank Al Jazira’s issue was the first sukuk by a Shariah-compliant bank in the Kingdom, and the country’s largest ever tier 2 sukuk. Saudi Binladin Group’s SR1 billion short-term sukuk in 2011 is another example of HSBC’s work. HSBC Amanah also wins the award for Islamic project finance house.
In asset management, HSBC Amanah is a leader in terms of global market share and has distribution across 14 countries. Among its accomplishments in 2011 was the launch of HSBC Amanah Securities Services, a Shariah-compliant funds administration and custody business available in 16 countries. HSBC Amanah also became the first international fund manager to offer a Shariah-compliant exchange-traded fund (ETF) in Saudi Arabia.
More than 80% of the branches of HSBC affiliate Saudi British Bank are now Amanah branches while globally HSBC Amanah branches continued to proliferate during the period. In Indonesia, HSBC Amanah clients can open Saudi riyal accounts for their cash and expenses during the Hajj, for example. HSBC Amanah private bank has its principal centres in the UAE, London, Geneva, and Singapore.
The firm is successful in smaller markets too. In Bangladesh, for example, HSBC Amanah is unusual in allowing cross-border credit for local importers, allowing them to benefit from a lower borrowing cost compared with local currency. One textile firm in Bangladesh has opened a $10 million cotton letter of credit via HSBC Amanah.
In takaful, the bank has manufacturing hubs in Malaysia, Saudi Arabia and Singapore. HSBC’s takaful unit was particularly successful in Malaysia during the period, doubling profits and winning important mandates from the Malaysian finance ministry.
HSBC Amanah is assisting the Islamic Development Bank’s Shariah-compliant trade finance scheme and this year’s winner has further advised governments, including in Indonesia, on the development of Islamic financial markets.
