Corporate banking: Al Salam Bank
CSR: National Bank of Bahrain
National Bank of Bahrain (NBB) allocated a total of BD4.1 million ($10.9 million) to community investment in 2021, with a focus on key partnerships and sponsorships. It wins the award for corporate social responsibility in Bahrain this year.
In January 2022, the bank launched its Education Finance programme – providing a financing solution to manage educational expenses at various academic levels – and developed partnerships with the American University of Bahrain and the British University of Bahrain. The bank invested in Al Hekma International School’s Economics and Career Education initiative, collaborated with Bahrain FinTech Bay to launch a digital banking challenge and partnered with the Ministry of Youth and Sports Affairs’ Lamea Programme to empower the nation’s youth and equip them with leadership skills.
The bank also signed an agreement with the Bahrain Institute of Banking and Finance to offer training opportunities for top graduates and held a ‘Career Compass’ youth guidance and training programme with youth organization AIESEC.
In the healthcare sector, NBB supported initiatives by Shaikh Khalid bin Hamad Al Khalifa, the first deputy president of the Supreme Council for Youth & Sports and president of Bahrain Athletics Association, including Smile for Children with Cancer. The bank also sponsored a two-day campaign led by the Arabian Gulf University to spread awareness on common heart diseases during Heart Disease Awareness Month. The bank donates funds and equipment to hospitals, medical centres and health providers in the Kingdom throughout the year.
NBB also signed a number of agreements with the Ministry of Housing to support government initiatives and facilitate loan financing options to citizens eligible for the Mazaya social housing scheme.
The bank’s CSR policy strives for a holistic approach that aligns its business with the needs of the community as well as the country’s social, economic and environmental efforts. It has provided more than BD50 million to local communities since its first CSR practice in 1957. The practice was enshrined in the creation of NBB’s Donations and Contributions Program in 1980, which dictates that 5% of the bank’s net annual profit is earmarked to support social activities.
Digital solutions: Bank ABC
Bank ABC released or integrated a number of new products in Bahrain during the awards period to enhance its digital offering for corporate and retail clients. It wins the country award for digital solutions.
To accelerate the digital onboarding of new clients, the bank adopted Fenergo’s API in August 2021. Fenergo – which also has BNP Paribas and Standard Chartered as clients – uses its databases, third-party data and Swift to expedite regulatory checks for new clients. The bank says the API means that it can create new accounts in less than eight hours.
Between May 2021 and January 2022, a novel project in the digital space saw Bank ABC pilot a digital currency settlement scheme in collaboration with Central Bank of Bahrain and JPMorgan. The scheme enabled buyers and suppliers to transfer funds to and from Bahrain in US dollars instantly through the integration of the bank’s API and JPMorgan’s blockchain business unit, Onyx, where funds were held on ledger. The transactions of Bank ABC client, Aluminium Bahrain, were used as the test case.
A further development for the bank’s clients involved in foreign exchange trading was the establishment of its E-Treasury digital trading platform. The new tool enables clients to trade forward contracts of up to one year.
The bank also enhanced its digital, mobile-only retail bank, ila, through the launch of new product Jamiyah in 2021. This enables users to create a digitized version of a traditional communal savings scheme through the creation of an automated investment pool.
ESG: National Bank of Bahrain
National Bank of Bahrain (NBB) launched its first annual Financial and Sustainability report in 2021, after introducing a sustainability framework in 2020. Last year, it also formed a new Nomination, Remuneration, Governance and Sustainability (NRGS) committee. It has launched several ESG-driven products and services, with the aim of meeting the Kingdom’s goal of zero carbon emissions by 2060.
The bank has installed solar panels in a number of selected NBB and Bahrain Islamic Bank (BisB) branches, which will save up to 65% in energy consumption and diminish its carbon footprint. It has also launched a solar-panel financing scheme for clients, providing an exclusive offering for customers seeking to install solar panels at home. Furthermore, NBB also provided financing for the construction and installation of solar panels in the new King Hamad American Mission Hospital.
The bank has also introduced an auto-finance scheme to customers to purchase hybrid or electric vehicles.
Another significant ESG initiative is its partnership with CleanUp Bahrain to finance the Green Up project, which aims to plant 810 trees along the 16th December Highway. Phase B of the project was completed in November.
NBB has also supported a food sustainability project by the Ministry of Works, Municipalities Affairs & Urban Planning. This project is set to design, build and operate a hydroponic farm.
The NBB ESG framework focuses on seven main pillars: economic growth; serving customers; responsible banking; nurturing its workforce; community investment; preserving natural resources; and governance and ethical behaviour.
SME banking: National Bank of Bahrain
During the second year of the Covid-19 pandemic, National Bank of Bahrain (NBB) continued to support micro, small and medium-sized enterprises (SMEs) and commercial customers in the country.
Last year, it launched Tamweel Al Watani, a lending scheme for those affected by Covid-19. Through this scheme, eligible firms can raise up to BHD100,000 unsecured loans, with repayment plans of up to five years.
This has been enhanced by a series of financial literacy sessions covering topics related to SME certification, eligibility, the application process and benefits. The initial session was held in partnership with the Ministry of Industry, Commerce and Tourism.
The bank has renewed its agreement with StartUp Bahrain and Startup MGZN to promote entrepreneurial culture among SMEs in the Kingdom. This is an effort to bring together entrepreneurs, corporates, investors, incubators, educational institutes and representatives from the Bahrain government.
NBB is focusing on high-growth and high positive-impact sectors. Since 2018, it has participated in the Bahrain-based Al Waha Fund of Funds and has committed 10% to the fund’s overall $100 million total. The initiative aims to provide funding access to global venture capital with a regional focus to develop Bahrain’s start-up industry and invest in technology, fintech and smart cities.
The bank also contributes more than 24% to the Liquidity Support Fund, a government initiative designed to support local market liquidity. The bank provides local organizations with term loans of up to BHD1 million to relieve immediate liquidity concerns. The bank has supported more than 40 clients in this way during the past two years.
CSR: EFG Hermes
Digital solutions: CIB
ESG: HSBC Egypt
SME banking: CIB
CSR: Bank Al Etihad
Bank Al Etihad used its mobile app and social media channels to help achieve its CSR targets in the aftermath of the Covid-19 pandemic. Its overall CSR strategy follows nine out of 17 goals of United Nations (UN) Sustainable Development Goals (SDGs).
Having donated JOD 2.15 million to the Ministry of Health and the Himmat Watan Fund during the pandemic, as well as cooperating with the Ministry of Higher Education to donate 100 laptops for university students to facilitate remote education, the bank also launched a campaign to donate food parcels for needy families via a NGO Tkiyet Um Ali (TUA).
Beyond this, Bank Al Etihad has committed to support financial inclusion and economic empowerment in Jordan. It works with social enterprises such asINJAZ, Nahji, Eventa and Wasel for Education and Awareness to support financial literacy development.
The bank has also funded the development of an online e-learning portal system for the Al Hussein Society for Intellectual disabilities. It has launched two major campaigns to facilitate the vaccination of the elderly and people with disabilities and a thank you appreciation campaign to medical staff working in governmental hospitals during COVID-19.
Environmental initiatives have included the development of the bank’s own solar energy projects, which have reduced 87% of the carbon footprint of its branches. Bank Al Etihad has also introduced Plastiqua, a programme that empowers underprivileged local women to upcycle expired bank cards. This has seen a total of 15,000 plastic bank cards upcycled into more than 2,000 jewellery and art pieces.
Digital solutions: Arab Bank
Arab Bank PLC has introduced multiple digital journeys to improve customer experience and engagement. This saw the number of financial transactions, including transfers, bill payments and card payments, via its mobile app grow by 20% from April 2021 to March 2022.
This means that transactions conducted via the Arab Bank mobile app now account for 27% of all business across digital and branch channels. In early 2021, Arab Bank introduced digital account onboarding, which resulted to more than 50% of new onboarded customers coming from the mobile app. The app offers instant personal loans and credit cards.
On the payments side, Arab Bank has introduced its point of sale (POS) solutions across the country, and in 2021 introduced Buy Now Pay Later services as well as eDeposit and eTawfeer (saving) accounts. Arab Bank has also launched a new, fully digital neo bank called REFLECT which targets younger customers.
SME banking: Capital Bank Jordan
Throughout last year, Capital Bank continued its participation in Jordan’s national loan guarantee programme, launched by the Central Bank of Jordan in partnership with the Jordan Loan Guarantee Corporation (JLGC). These loans are extended to companies in the sectors most affected by the Covid pandemic. This has seen loan extended to SMEs in sectors across the economy, including industry, renewable energy, tourism, agriculture, information technology, engineering consultancy, health, technical and vocational education, transportation and exports.
Capital Bank also developed banking products for start-ups that have faced difficulties in acquiring financing elsewhere.
In 2021, Capital Bank partnered with foreign institutions and agencies to promote SME lending in Jordan. This includes an agreement with the Dutch Entrepreneur Development Bank FMO to provide loan guarantees dedicated to micro and SMEs owned by young entrepreneurs affected by the Covid pandemic. The loans will be granted through small financing companies in Jordan such as Liwa’ United for Financing Small and Medium Enterprises and Sanadcom for Business Financing.
Another agreement signed last year was a $75 million loan with Proparco, the investment arm of the French Development Agency (AFD) and the German Agency for Investment and Development (DEG). This loan will support SMEs financing to women-led business, start-ups and FinTechs, youth-owned businesses and SME located outside the capital, Amman. These segments are considered impactful for the economy, but they have difficulty accessing traditional financial services.
This loan agreement is expected to improve access to financing for more than 400 SMEs and support close to 9,700 jobs in the SMEs financed.
CSR: Boubyan Bank
D&I: NBK
Digital solutions: NBK
ESG: NBK
Islamic finance: KFH
SME banking: Boubyan Bank
CSR: National Bank of Oman
National Bank of Oman (NBO) has concentrated its efforts in the community on responding to crises, youth empowerment, social and economic development, and education.
Since the outbreak of Covid-19, NBO has donated more than OMR1.5 million ($3.9 million) to support the government’s efforts to combat the pandemic. Together with the Ministry of Health, NBO conducted a vaccine roll-out programme for staff and their spouses, provided a fleet of ambulances in Muscat and Dhofar governorates, and purchased medical equipment for the most strained hospitals in the Governorate of Dhofar.
NBO has also partnered with the Ministry of Education to launch an e-library platform which provides digital reading material, research papers and books. The platform, which was developed in response to the school closures during the pandemic, served 1,124 schools with approximately 650,000 students and 56,385 employees across the country.
In October 2021, when cyclone Shaheen hit Oman, NBO implemented a wide-reaching relief programme which included providing funding for recovery efforts. The bank allocated an additional OMR10 million for interest-free loans as well as a three-month loan deferment for its directly impacted customers. It also partnered with retailers to offer its customers a discount of up to 50% on essential household appliances to help replace items lost due to the disaster.
During Ramadan in 2021, NBO worked with MarkeetEx, Dalilee and the local community, in raising sufficient funds to deliver food hampers for more than 1,000 low-income families.
NBO also supports a scholarship programme for students from low-income families, and it provides a two-year employment contract with the bank to six out of 10 students who attended top universities in the UK.
In June 2021, NBO initiated the new Innovation Incubator programme, which attracted 1,500 applicants. The bank selected 30 IT graduates and taught them how to design their own startup fintechs. This programme was conducted in collaboration with the SME Development Authority, Oman Academy for SMEs and Paradigm Consulting. It resulted in the selection of three winners who had the opportunity to pitch ideas to potential investors.
Digital solutions: Bank Dhofar
In April 2021, Bank Dhofar announced its partnership with Ripple, the provider of enterprise blockchain solutions for global payments, to drive real-time payments to India. Through this partnership, Bank Dhofar will connect with India’s IndusInd Bank on Ripple’s global payments network, RippleNet. Bank Dhofar’s customers will be able to transfer up to OMR1,000 ($2,600) to deposit accounts in India instantly through its mobile banking app.
Bank Dhofar was the first bank in Oman to join the leading blockchain consortium BankChain, to support the best practices and solutions in blockchain. With its connection to RippleNet, Bank Dhofar aims to improve its customers’ satisfaction through maximizing operations efficiency, security and transparency.
Another partnership signed in April 2021 was with Thawani Technologies, Oman’s pioneering digital payments platform. Thawani Technologies will provide innovative solutions, while Bank Dhofar will bring its infrastructure and expertise to accelerate Oman’s digital transformation and the trend for remote payments.
Last year, Bank Dhofar replaced its NCR Personas ATMs with a new family of NCR SelfServ™ 80 Series. The bank now has a network of more than 121 ATMs, 55 cash deposit machines and 14 full function machines.
In another initiative, Bank Dhofar provides Drive Thru Banking services, which allow various transactions to be carried out from cars, including cash deposit and withdrawal, cheque deposit, instant debit card issuance, bank transfers, and requests for account statements. The drive-thru service is available in the Al Seeb branch and Al Saada branch.
Meanwhile, Bank Dhofar’s mobile banking app’s services include instant transfer to any bank in Oman, cardless cash, mobile top-up for all domestic telecom providers, increasing withdrawal limit to OMR5,000 and instant international money transfer service through Western Union.
ESG: HSBC Oman
Just like its global parent, HSBC Oman follows a commitment to implement environmental, social and governance (ESG) principles. The bank has undertaken all product launches, inaugural customer transactions, capex investments, hiring, training and governance initiatives in line with HSBC Group’s commitment to reduce the financed emissions from its portfolios to net zero by 2050.
HSBC Oman launched green personal loans for its retail customers in August 2021. The loans, which will offer an interest rate discount, are applicable only for the purchase of solar panels for homes and related installation expenses.
HSBC Oman has also installed 600 kilowatts of solar energy capacity in its own Muscat headquarters. Through this solar energy source, the bank generated an average of 59490.75 kWh green energy, with an average of 31,923.6 kg/CO2e emissions saved for the 12 months from April 2021 until March 2022.
Meanwhile, in the social sector, HSBC Oman partnered with Sharakah (Fund for Development of Youth Projects) to create the Istidama programme for SMEs development in January 2022. The programme will provide OMR12 million ($31 million) in financing and it aims to support entrepreneurs to grow sustainable businesses and integrate ESG into their business models.
During cyclone Shaheen, in October 2021, HSBC Oman provided financial assistance to the impacted families in the Al Batinah North region and initiated a donation drive to allow the bank’s staff to contribute. The bank also partnered with Outward Bound Oman to help build confidence and resilience among young people.
HSBC Oman has implemented a corporate governance framework that meets all local Oman regulations, embodies international best practice and encompasses HSBC Group global standards. The bank launched “HSBC and Me”, a mandatory training for all HSBC Bank Oman employees, focusing on risk responsibilities, underpinned by the company’s global principles and a refreshed purpose and values strategy.
In 2021, the bank launched “Living our values”, a mandatory training for all employees that explores the important role everyone plays in adhering to good conduct and values.
Corporate banking: Commercial Bank of Qatar
Commercial Bank of Qatar (CBQ) saw growing demand for digital solutions from clients throughout 2021, resulting in an increasingly important role for its online and mobile banking solutions.
The number of its corporate clients that accessed banking services via mobile devices increased by 20% last year. This was followed by a 30% growth in business owners and decision makers using CBQ’s mobile solutions to approve transactions.
This growth is the product of the bank’s digital solution enhancements. It offers 60-second remittance, which has been expanded to a wider international network, and CBsafe ID, which was launched to address fraudulent calls and enabled customers to identify legitimate calls from the bank. Other new digital solutions are CB Video Relationship Manager, which allows customers to manage accounts with a relationship manager without visiting the branch, and CB Voice, which allows fast access to accounts with an added layer of biometric security.
Transaction banking business is now being conducted digitally for 90% of payments, 99% of salaries and 93% of trade transactions. The bank’s trade volumes also grew from QAR27 billion ($7 billion) in 2020 to QAR40 billion in 2021.
By the end of 2021, CBQ Group reported a net profit of QAR2,304 million, a 77.1% increase from QAR1,301 million in 2020. The group’s operating profit increased 15.3% to QAR3,621 million. It is the third-largest bank and second-largest conventional bank in Qatar in terms of total assets, loans and advances, deposits and total equity.
CSR: Doha Bank
Doha Bank has focused oncorporate social responsibility (CSR), supporting environmental protection, sustainability practices and engagement with the community and stakeholder groups.
The bank is included in the FTSE4Good Emerging Index and it is the top ranked of listed companies in Qatar by ESG Invest. It was also included in the MSCI QSE 20 ESG Index that was launched in November 2021.
In Qatar, Doha Bank is among the pioneers in raising awareness for environmental and climate change issues. It encourages account holders to opt for paperless banking and has participated in the Plant a Million Trees initiative of the Ministry of Municipality and Environment, planting trees at Old Airport Park in October 2021.
Doha Bank maintains its well-defined environmental policy with the principles of “Reduce, Reuse & Recycle”.
In December 2021, it supported the “giving warmth” relief campaign to provide winter aid to 170,000 poor and vulnerable victims of war and disasters in Syria, Iraq, Lebanon, Yemen, Afghanistan and Kyrgyzstan. The total cost was about QAR12.2 million ($3.3 million).
In addition, Doha Bank held a blood donation drive at its headquarters in February 2022, in partnership with the Blood Donor Center of Hamad Medical Corporation. The event attracted around 65 donors, which included the bank’s staff and customers.
In March 2022, Doha Bank announced the eighth edition of its ECO-Schools Program Awards for students and schools that complete ECO-Schools projects and play an active role in learning about environmental issues and implementing sustainable practices.
Digital solutions: Qatar Islamic Bank
During the awards period, Qatar Islamic Bank (QIB) launched various new products and services for its customers via its mobile app. Those include conversational virtual assistance, Apple Pay, Visa Direct, direct remit services, brokerage services, video banking, the Absher Reward Program for loyalty points, and Discreet Mode, which allows customers to hide their account and financial details when using the mobile app in public locations. As a consequence, the mobile app experienced significant growth, with an average of 2 million logins every month.
40% of new customers were onboarded digitally last year, and 24% of new accounts for existing customers were opened digitally as well. The bank also handled 100% of online corporate salary payments and 91% of local and international transfers via the corporate internet banking platform.
The bank’s mobile app services include Instant Finance, Instant Credit Card, Digital Onboarding and the Domestic Workers Account. So far, 38% of credit cards are sold digitally as are 55% of personal financing products.
Other new services include instant financing against deposit, QR code functionality, online corporate account opening, flexible certificate of deposits (Flexi CD), and cheque book and instant credit card request. QIB has also partnered with Visa to promote the FIFA World Cup Qatar 2022 through its mobile app.
QIB also supports the government’s effort in building digital infrastructure and ecosystem. This has involved integration with utility service providers to allow bill payments through online banking services, bancassurance and instant Islamic finance. QIB’s partners in this service include telecom operators Ooredoo and Vodafone and the electricity and water authority Kahramaa.
Islamic finance: QIB
Digital solutions: Riyad Bank
ESG: Saudi National Bank
Saudi National Bank (SNB) published its sustainable finance framework in November 2021, becoming the first bank to launch such a framework in Saudi Arabia.
The framework consists of four main pillars: promoting sustainable financing, preserving the environment, empowering individuals and communities, and promoting principles of good ethical governance. S&P Global Ratings has confirmed that the bank’s ESG framework aligned with the social bond and loan principles, green bond and loan principles, and sustainability bond guidelines.
Following the establishment of this framework, SNB and Standard Chartered Bank signed a $250 million repurchase agreement transaction based on ESG principles. The proceeds of this transaction are to be allocated to finance several renewable energy projects and green initiatives in Saudi Arabia and the Gulf Cooperation Council region.
In addition, in January 2022, SNB sold its first sustainable sukuk, a $750 million five-year Islamic bond priced at 85 basis points over US treasuries. SNB will use the funds from the sukuk issuance to support projects eligible under its ESG framework.
This year, SNB plans to establish a committee to oversee its ESG activities, such as preparing the bank’s overall sustainability strategy and overseeing its ESG reporting standards to ensure they are in line with guidelines from the Saudi Exchange.
Islamic finance: HSBC
SME banking: Riyad Bank
Riyad Bank maintains its strong position serving the small and medium enterprises (SMEs) segment in the Kingdom of Saudi Arabia.
By the end of December 2021, the bank had booked 21% of total loans granted to SME businesses in the country. The bank’s credit allocation to SMEs was 19% of the total credit portfolio and 30% of the corporate credit portfolio throughout last year.
It’s total number of SME customers reached 120,000 in 2021, increasing 11% from 108,000 customers in 2020.
Riyad Bank’s SME loan portfolio is concentrated in the construction sector, which accounted for 35% of total volume in 2021. This was followed by the trade sector at 21%, the service sector at 19% and the industrial sector made up 13%.
Riyad Bank opened three flagship centres as one-stop resource and support centres for SMEs in 2021, as well as launching an SME digital platform for these clients.
The bank has established co-operation agreements with several organisations that are focused on the SME sector, such as the Tourism Development Fund, the National Technology Development Program, the Cultural Development Fund and the General Entertainment Authority.
Saudi Arabia’s Vision 2030 encourages banks to allocate more loans to SMEs – with a view to this sector accounting for 35% of the country’s GDP as part of its diversification away from oil towards tourism, manufacturing, clean energy and logistics.
Corporate banking: First Abu Dhabi Bank
From April 2021 to March 2022, First Abu Dhabi Bank (FAB) took a 10.5% market share in bilateral syndicated loans and club deals in the Middle East. The bank was top loan bookrunner in the region with 24 loan deals valued at $8.74 billion, and the number one facilities agent with 17 deals valued at $42.5 billion.
Those deals included 16 sustainable loan transactions in 2021, with a total deal value of more than $12 billion. One notable deal was the $1.2 billion sustainability-linked loan facility for Etihad Airways in October 2021. FAB acted as the joint ESG structuring bank, joint ESG coordinating bank, joint bookrunner and the mandated lead arranger and agent.
FAB was also involved in the $4.5 billion term loan and revolving credit facility for Abu Dhabi Developmental Holding Company in December 2021, where it was joint global coordinator, bookrunner, mandated lead arranger and facility agent.
In the equity capital markets, FAB advised every UAE equity deal during April 2021 to March 2022. The bank was also involved in the IPOs of Global Foundries, Fertiglobe, Acwa Power, Adnoc Drilling and Yahsat.
Digital solutions: Mashreq Bank
Mashreq Bank launched a new cloud-based online and mobile banking platform in 2021, which recorded around 5.4 million activity sessions per month.
It initiated the use of face recognition for retail account opening, using Neo face recognition onboarding. This technology allows customers to complete a fully digital onboarding process in less than two minutes.
Mashreq has added motor insurance to the various financial products available through its digital platform. Existing clients of Oman Insurance Company, the insurance partner of Mashreq, are able to generate, review, buy and update RTA records in less than two minutes. Those clients can also renew policies instantly.
The bank is in the process of replacing the IRIS business architecture facilitating back office processes for retail lending workflows. The bank will now use the Camunda platform as the workflow tool that will gradually replace IBM BPM for all future workflows in retail banking.
Mashreq has released a new app for relationship managers in the private banking and Mashreq Gold segments, as well as the universal banker app – a tablet banking application launched in Mashreq’s Egyptian branches.
It has also launched an active application programming interface (API) developer portal. This will allow developers to use Mashreq’s APIs for use on their own applications.
ESG: First Abu Dhabi Bank
First Abu Dhabi Bank (FAB) launched its new group ESG strategy and revised its ESG governance structure in 2021. It also appointed its first chief sustainability officer, Shargiil Bashir, to lead the transformation.
In October 2021, it was also the first UAE and GCC bank to join the Net-Zero Banking Alliance, which commits to achieve net-zero emissions on both its operations and investments by 2050.
FAB advised and led on more than 20 sustainable finance transactions valued at more than $13.5 billion last year. This included the issuance of a $700 million sustainable linked revolving credit facility for Etihad Airways in December 2021, where FAB acted as joint ESG structuring bank, ESG coordinating bank and bookrunner, as well as mandated lead arranger and agent.
In November 2021, FAB supported the $3 billion green loan and Murabaha facility issued by the Egyptian Ministry of Finance. It was the loan coordinator that structured the green loan tranche to finance or refinance eligible projects under Egypt’s Ministry of Finance’s Green Financing Framework.
FAB itself has committed to finance $75 billion by 2030. Since its first green bond deal in 2017, the bank has financed more than $30 billion in sustainable projects.
FAB’s ESG strategy follows three pillars: transforming its governance model, transitioning to a low carbon future and capitalizing on its social responsibility. Last year, FAB also introduced an ESG lens into the risk management processes by launching the Group ESG Risk Policy
In June 2021, it received an upgraded rating from A to AA in the ESG leader category by MSCI.
