StanChart to increase Islamic banking business

BY LEONG HUNG YEE

KUALA LUMPUR: Standard Chartered Bank Malaysia Bhd (StanChart) expects to increase its Islamic banking business to 20% of total assets by 2010 from 5.23% in 2006, said Islamic banking division head Azrulnizam Abd Aziz. 

He said the bank expected to double the size of its Islamic assets this year from RM2.05bil last year by its product range and sales network. 

"In the last 15 to 18 months, we have set up a platform to help us drive our Islamic banking business," Azrulnizam said after the launch of StanChart's Islamic banking global brand Saadiq by Finance Ministry parliamentary secretary Datuk Seri Dr Hilmi Yahaya at Menara Standard Chartered on Monday. 

"We are aware of the significance and magnitude of Islamic funds available globally, estimated at between US$600bil and US$1tril. All major international banks have begun their Islamic banking initiatives and have in fact doubled up efforts of late. 

"By 2009, up to 50% of total savings of Muslims worldwide is expected to be managed under Islamic banking," Azrulnizam said. 

He added that the new brand would be launched in other countries where it had a presence and Saadiq would act as a "building block" for StanChart to grow its Islamic banking business. 

In conjunction with the launch, StanChart also launched its first product under the new brand name, the Saadiq Account-I, which combines saving and current accounts into one.  

The new product will be available by end-April. 

StanChart currently has 24 Islamic products and will launch another four by year-end.