ABN AMRO plans Islamic banking unit

By YVONNE TAN

KUALA LUMPUR: ABN AMRO Bank Bhd may set up an Islamic banking subsidiary in Malaysia, in line with the growth of its Islamic finance business. 

Managing director and country executive Harry Naysmith said the bank might consider opening the subsidiary when its Islamic banking business was “big enough”. 

“Currently, we have an Islamic window here. When it gets to a certain size, we will apply to have that converted into a subsidiary,” he said after the launch of ABN AMRO Bank NV’s first Islamic product in Malaysia yesterday. 

Naysmith said ABN AMRO received Bank Negara approval to carry out its Islamic finance business through the Islamic window a month ago. 

He also said the Islamic business was not new to ABN AMRO as it had “significant” Islamic businesses in the Middle East and Europe. 

Naysmith said the bank was looking to grow its business organically and would not consider mergers and acquisitions as part of its growth strategy. 

“We plan to open two branches before end-June – one each in Johor Baru and Sitiawan,” he said, adding that the bank currently had two branches in the country.  

Meanwhile, the newly launched ABN AMRO Islamic Foreign Currency Private Investor series of products are aimed at institutional offshore investors. 

ABN Amro Bank NV, London global head of Islamic structured products, Zafar Alam (left) and Harry Naysmith at the briefing.

Asked when the product could be offered to local retail investors, Naysmith said: “We are in active talks with the central bank for approval.”