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IFN Best Poll 2019: Battle of the biggest

position to bring the best performance liquidity management instruments for to the table? With well over 14,000 votes local Islamic banks, which has boosted received, the industry has now spoken — the volume of issuance of the overall and this is what it said… market.

Supervisory heroes Battle of the biggest Governing bodies and state supervisors Malaysian banks also dominated in play a fundamental role in supporting, many of the thematic categories this BEST BANKS guiding, directing and leading the year, refl ecting the strong year that the industry — both in well established country’s domestic Islamic banking 2019 markets and new entrants. No matt er industry has seen. CIMB Islamic took where a country might be along the path home the crown for Best Islamic Where does the time go? It seems like to Islamic fi nance, the central bank is the for Treasury Management, taking just a few short months ago that we pivot around which every other element the title from 2018 winner, Pakistan’s were celebrating the winners of 2018 — must rotate. Meezan Bank. DIB came second, while but a whole year has passed, and it is Maybank Islamic came third. Malaysia’s once again time to evaluate the supreme The category of Best Central Bank in two leading banks batt led it out in achievers of the past 12 months in the Promoting Islamic Finance is always one numerous other categories this year as celebrated IFN Best Banks Poll for 2019. of the most closely-fought contests and well — including Best Islamic Retail Now in its 15th year and covering 41 this year was no exception. Unusually, Bank, where the roles were reversed and categories and 32 countries, the awards last year’s winner (the State Bank of Maybank Islamic took home the prize represent some of the most prestigious Pakistan) did not make it to the shortlist with CIMB Islamic coming third and, accolades in the Islamic fi nance this time around, with the 2018 runner- once again, DIB taking second place. In industry, acting as a unique barometer up and all-round Islamic banking pioneer the category for Best Islamic Private for industry performance. Bank Negara Malaysia (BNM) instead Bank, Maybank Islamic once again taking the well-deserved top spot. The walked away with the honors, snatching A lot has happened in the past year apex bank has played a leading role in the crown from last year’s winner, Abu within the Islamic banking industry. the global and domestic development Dhabi Islamic Bank (ADIB), which came We saw ongoing consolidation in the of Islamic fi nance for decades now, second, while ADCB Islamic Banking Gulf with major players such as Dubai and 2019 was no exception — with its was third. Islamic Bank (DIB), Al Hilal Bank and groundbreaking VBI initiative expected Barwa Bank spreading their wings. We to drive a transformation toward ethical The most fi ercely fought category saw positive legislative progress, with and sustainable banking practice that will between the two Malaysian giants was, Morocco, the Philippines and Bangladesh act as a key driver for Islamic fi nancial of course, however the country award all introducing new Islamic frameworks institutions. Not one to be left behind, — a batt le that received the some of the in 2019. We saw Malaysia take the lead BNM is also forging ahead in the digital highest voting levels in the competition. with its ambitious new Value-based space, with plans to issue at least fi ve This year, and for the fourth year in a Intermediation (VBI) Framework. And new digital banking licenses to fi ll gaps row, CIMB Islamic came in top, with we saw Sukuk volumes make a strong in the market. Maybank Islamic a close second and recovery from their dip in 2018, with Bank Rakyat coming in third. lower interest rates and abundant In second place came the Central Bank liquidity pushing the market ever higher. of Oman, which stands as a shining Innovation station example in the GCC of a strong, stable However, Malaysian banks did not But in an increasingly competitive and cautious infl uence — and which in dominate every category. The award for environment, Islamic banks are having 2019 began to consider the possibility of Most Innovative Islamic Bank, always to box ever more clever when it comes moving away from its current window one of the most popular in the poll, this to diff erentiating themselves — from model toward a Qatar-esque fully- year received a record number of votes digital facilities, blockchain innovation fl edged Islamic banking market. Finally and the highest out of all the categories. and fi ntech investment to sustainable in third place came Bank , Although it was close, Dubai’s Emirates fi nance, ethical investment, fi nancing which deserves a special mention for Islamic fi nally walked away with the for the Halal economy and much more. its positive support of the country’s prize. The bank embarked on a major So who has been cashing in on these fl edgling Sukuk industry over the year digitization drive over the past year, and opportunities, and leveraging their — including the issuance of Sukuk as continued on page 2 COVER STORY

IFN Best Banks Poll 2019: Batt le of the biggest Continued from page 1 has become a pacesett er in the digital arm, Maybank Indonesia, won the environment becoming more inclusive, race — including as the fi rst Islamic bank day across the pond via its Shariah we could see a shakeup in the category in the UAE to launch a mobile banking window — knocking 2018 winner Bank for 2020, so watch this space. app. In April 2019, the bank also became Danamon off the top spot. 2017 winner the fi rst Islamic bank in the world to CIMB Niaga once again came in second, Moving south, in Pakistan there were launch its own WhatsApp banking while Bank Muamalat Indonesia was no surprises, with the award going to service, while in September it became the third. Maybank Syariah Indonesia had a dominant player Meezan Bank (runner- fi rst UAE bank to off er dynamic currency sterling year in 2019, driven by a focus up was DIB Pakistan and third place conversion. DIB again took second place, on retail and digital banking along went to BankIslami Pakistan), while the while Pakistan’s Meezan Bank came with its core SME business, and has big Bangladeshi crown once again went to third. expansion plans for 2020 supported by Islami Bank Bangladesh (with Exim . and ICB Islamic Bank coming in second Breaking ground and third respectively). Best Islamic The award for Best New Islamic Bank In Brunei, it will come as no surprise Bank in Sri Lanka went to 2018 winner is another interesting fi eld. Introduced that Bank Islam Brunei Darussalam once LOLC Al-Falaah for yet another year, for the fi rst time in 2018 to recognize the again took top honors, with CIMB Brunei with Amana Bank and Bank of Ceylon’s bank that has most successfully achieved again coming second and Perbadanan Shariah unit An-Noor as runner-up. a new market entry, the inaugural award Tabung Amanah Islam Brunei in third went to FAB Siraj, the Islamic banking place. In Thailand, CIMB Thai took African activity arm of First Abu Dhabi Bank (FAB). This the top spot this year while previous Africa continues to be one of the most year saw an even wider fi eld, with the winner Islamic Bank of Thailand fell to exciting places for growth in Islamic laurels eventually going to Iraq’s Al Taif second place and the Al-Islamiah Saving fi nance, and 2019 built upon previous Islamic Investment & Finance Bank. The Cooperative came third. years’ progress to move ever further bank itself has been in operation since forward — including a new Islamic 2006, but converted into a fully-fl edged In Australia, Best Islamic Financial insurance law for Morocco, a second Islamic bank in March 2018 following Institution went to Amanah Islamic Sukuk facility listed in Nigeria and a the launch of a new brand identity and Finance for the third year in a row. A proposed Islamic fi nance framework for a migration onto a new core banking pioneering mortgage manager headed Tanzania. platform. Runner-up was Nigeria’s Taj up by CEO Asad Ansari, Amanah works Bank, fi rst licensed in July 2019, while hard to fi ll the gap for Shariah compliant This year we expanded the African Iraq’s Ur Bank for Islamic Investment home loans in Australia. The Islamic Co- categories to cover some new and came third. Operative Finance Australia was runner- emerging frontier markets — including up and Hejaz Financial Services came Somalia, where the award for Best On the leasing side, Sri Lanka’s LOLC third. Islamic Bank goes to Salaam Bank, with Al-Falaah was yet again voted as Best Salaam Somali Bank and Dahabshil Islamic Leasing Provider, with the Although there is litt le Islamic fi nance Bank International in second and third. UAE’s Islamic Finance House coming within Japan itself, Japanese institutions In Sudan, Africa Bank for Trade and a close second and ADIB third. In have made a name for themselves within Development knocked Al Baraka off the a surprise twist however, Standard the industry outside of their home top spot for 2019, with Al Salam Bank Chartered was pipped at the post for Best country, and their eff orts have earned (Sudan) voted in second place and Bank Islamic Trustee/Custodian by , them a category all to themselves. For of Khartoum third. In South Africa with 2018 runner-up HSBC Corporate 2019, the award for Best Japanese Bank however, Al Baraka Bank once again Trustee again coming in second and Off ering Islamic Financial Services goes won the day (followed by Absa and FNB) bringing up the rear. once again to MUFG Bank, rebranded while in Kenya, 2018 winner DIB Kenya from Bank of Tokyo Mitsubishi UFJ won yet again, with National Bank of Asian heroes (the 2017 winner) in April 2018, Japan’s Kenya as the runner-up and Barclays largest bank and the eighth-largest in the Kenya in third — and 2017 winner Gulf From the global to the local, our country world. categories exist to showcase the headline African Bank interestingly nowhere in sight. act of every signifi cant Islamic fi nance It was a big year for MUFG Bank in its jurisdiction — the bank that has played home country, and in March 2019 the the biggest part in driving forward Moving north, BTI Bank (Bank Al- bank partnered with Morgan Stanley to Tamweel Wa Al-Inma) won the day in the industry. In some this might be become the fi rst entity in Japan to market the big boys, the bright stars — but in Morocco (followed by Al Akhdar Bank domestic Islamic bonds, following a and Bank Assafa); while 2018 winner other markets, new entrants and agile change in the previously prohibitive challenger banks can win the day. In the ADIB Egypt retained pole position in tax law. Sumitomo Mitsui Banking Egypt with Al Baraka Bank Egypt and IFN Best Banks Poll size does not matt er Corporation came second while Mizuho — the priority is progress. Faisal Islamic Bank of Egypt coming in Financial Group came in third — but close behind. with the Islamic fi nance landscape Maybank might have lost out in heating up in Japan and the regulatory Malaysia but the bank’s Indonesian continued on page 3

© 2 8th January 2020 COVER STORY

IFN Best Banks Poll 2019: Batt le of the biggest Continued from page 2

Gulf glory Best Islamic Bank in Bahrain for 2019, fi nished fi rst while Faisal Islamic Bank of The GCC threw up few surprises this followed by ABC Islamic in second and Kibris came in second. year, with the top banks largely just Al Baraka Bank Bahrain third. exchanging positions rather than making In the US, the title of Best Islamic Bank room for any wild cards. With the latest In the wider Middle East, Syria was awarded to UIF Corporation, winner round of consolidation that occurred over International Islamic Bank retained for the third year in a row and the the year however, 2020 could see a very its title as Best Islamic Bank in Syria parent of 2016 winner University Islamic diff erent landscape. For 2019 however, (runner-up: Al Baraka Bank Syria; third: Financial (UIF), while Ameen Housing we kick off with Best Islamic Bank in the Cham Bank) while in Yemen, the prize Co-operative came in second and Bank UAE, which was taken by ADIB with was again won by the Islamic Bank of of Whitt ier third. And fi nally, in the UK, 2018 winner DIB a close second and Yemen (runner-up: Saba Islamic Bank; the Bank of London and The Middle East Emirates Islamic coming in third. third: Al Amal Microfi nance Bank). In won the day with 2018 winner and retail the Palestine Territories, Arab Islamic pioneer Al Rayan Bank voted in second In Saudi Arabia, Al Rajhi Bank once Bank once again took top spot (followed and Gatehouse Bank third. again retained top spot, with Riyad by Palestine Islamic Bank and Al Safa Bank coming in second and previous Bank). In Lebanon, Arab Finance House Drumroll please… runner-up Alinma Bank third. In pushed its way to the top, shouldering Now, the announcement you have all Kuwait, Kuwait Finance House claimed out incumbent Al Baraka Lebanon with been waiting for… the win once again, with Boubyan Bank Al Bilad Islamic Bank for Investment and Warba Bank second and third & Finance and Lebanese Islamic Bank Only one bank can take the crucial respectively. In Qatar, which has seen its instead coming in second and third crown, the fi nal title, the ultimate glory. own spate of mergers and acquisitions respectively. So who will be the winner of the IFN activity in the Islamic sector, 2017 Best Overall Islamic Bank for 2019? winner Qatar Islamic Bank regained the For the fourth year in a row, Jordan crown, followed by 2018 winner QIIB in Islamic Bank was voted Best Islamic Bank With a prestigious and highly second and Masraf Al Rayan coming in in Jordan with Al Rajhi Bank Jordan competitive shortlist comprising fi ve of third. coming second and Islamic International the industry’s leading players (ADIB, Arab Bank third. In Iraq, World Islamic CIMB Islamic, DIB, Maybank Islamic In Oman, Bank Muscat’s Islamic Bank for Investment and Finance came and Meezan Bank), the competition was arm Meethaq won top spot, with out top; while in Iran, 2017 winner fi erce — and the suspense must continue the country’s only two fully-fl edged Ansar Bank wins again with Cooperative a litt le longer! The fi nal winner will, as Islamic banks, Bank Nizwa and Alizz Development Bank the runner-up. In always, be announced at the IFN Awards Islamic Bank, coming second and third Afghanistan, the prize was taken by the Ceremony to be held on the 8th March respectively. Meethaq launched its Islamic Bank of Afghanistan. 2020 in Dubai — so book your tickets second Sukuk program in 2019 to strong now. demand. Western wins Moving gradually west, in Turkey last We thank all nominees, voters and Finally Bahrain Islamic Bank, one of year’s winner Turkiye Finans Katilim participants for your commitment, your the largest and oldest institutions in the Bankasi was knocked into third place by dedication and your achievements. Kingdom, once again took the prize for Albaraka Turk Katilim Bankasi which Congratulations to all!

Best Islamic Bank by Sector BEST CENTRAL BANK IN PROMOTING ISLAMIC FINANCE 1st: Bank Negara Malaysia 2nd: Central Bank of Oman 3rd: BEST ISLAMIC LEASING PROVIDER 1st: LOLC Al-Falaah 2nd: Islamic Finance House 3rd: Abu Dhabi Islamic Bank BEST ISLAMIC PRIVATE BANK 1st: Maybank Islamic 2nd: Abu Dhabi Islamic Bank 3rd: ADCB Islamic Banking BEST ISLAMIC RETAIL BANK 1st: Maybank Islamic 2nd: Dubai Islamic Bank 3rd: CIMB Islamic BEST NEW ISLAMIC BANK 1st: Al Taif Islamic Investment & Finance Bank 2nd: Taj Bank 3rd: Ur Islamic Bank for Investment MOST INNOVATIVE ISLAMIC BANK 1st: Emirates Islamic 2nd: Dubai Islamic Bank 3rd: Meezan Bank BEST ISLAMIC TRUSTEE/CUSTODIAN 1st: Citibank 2nd: HSBC Corporate Trustee 3rd: Deutsche Bank BEST ISLAMIC BANK FOR TREASURY MANAGEMENT 1st: CIMB Islamic 2nd: Dubai Islamic Bank 3rd: Maybank Islamic

© 3 8th January 2020 COVER STORY

Best Islamic Bank by Country

EUROPE INDIAN SUBCONTINENT SOUTHEAST ASIA TURKEY PAKISTAN MALAYSIA Albaraka Turk Katilim Bankasi Meezan Bank CIMB Islamic Faisal Islamic Bank of Kibris Dubai Islamic Bank (Pakistan) Maybank Islamic Turkiye Finans Katilim Bankasi BankIslami Pakistan Bank Rakyat UK BANGLADESH INDONESIA Bank of London & The Middle East Islami Bank Bangladesh Maybank Syariah Indonesia Al Rayan Bank Exim Bank (Bangladesh) CIMB Niaga Gatehouse Bank (UK) ICB Islamic Bank Bank Muamalat Indonesia SRI LANKA BRUNEI THE AMERICAS LOLC Al-Falaah Bank Islam Brunei Darussalam Amana Bank (Sri Lanka) CIMB Brunei US Bank of Ceylon (Shariah Unit: An-Noor) Perbadanan Tabung Amanah Islam UIF Corporation (University Islamic Financial) Ameen Housing Co-operative (San Francisco) Brunei (TAIB) Bank of Whitt ier THAILAND CIMB Thai Islamic Bank of Thailand Al-Islamiah Saving Cooperative

AFRICA SUDAN African Bank for Trade and Development Al Salam Bank (Sudan) Bank of Khartoum SOUTH AFRICA Al Baraka Bank South Africa MIDDLE EAST Absa Islamic Bank FNB Islamic Banking UAE YEMEN Abu Dhabi Islamic Bank Islamic Bank of Yemen KENYA Dubai Islamic Bank Saba Islamic Bank Dubai Islamic Bank (Kenya) Emirates Islamic Al Amal Microfi nance Bank National Bank of Kenya Barclays Kenya SAUDI ARABIA PALESTINE Al Rajhi Bank (Saudi Arabia) Arab Islamic Bank (Palestine Territories) MOROCCO Riyad Bank Palestine Islamic Bank BTI Bank (Bank Al-Tamweel Wa Al-Inma) Alinma Bank Al Safa Bank Al Akhdar Bank Bank Assafa KUWAIT LEBANON Kuwait Finance House Arab Finance House EGYPT Boubyan Bank Al Bilad Islamic Bank for Investment & Finance Abu Dhabi Islamic Bank (Egypt) Warba Bank Lebanese Islamic Bank Al Baraka Bank Egypt Faisal Islamic Bank of Egypt QATAR JORDAN Qatar Islamic Bank Jordan Islamic Bank SOMALIA QIIB Al Rajhi Bank (Jordan) Salaam Bank Masraf Al Rayan Islamic International Arab Bank Salaam Somali Bank Dahabshil Bank International OMAN IRAN Meethaq Islamic Banking (Bank Muscat) Ansar Bank ASIA PACIFIC Bank Nizwa Cooperative Development Bank Alizz Islamic Bank Bank Melli Iran AUSTRALIA Amanah Islamic Finance BAHRAIN IRAQ Islamic Co-Operative Finance Australia Bahrain Islamic Bank World Islamic Bank for Investment & Finance (ICFAL) ABC Islamic International Islamic Bank Hejaz Financial Services Al Baraka Bank Bahrain Iraqi Islamic Bank JAPAN SYRIA AFGHANISTAN MUFG Bank (formerly known as Bank of Syria International Islamic Bank Islamic Bank of Afghanistan Tokyo-Mitsubishi UFJ) Al Baraka Bank Syria Afghanistan International Bank Sumitomo Mitsui Banking Corporation Cham Bank Afghan United Bank Mizuho Financial Group Note: Red: Winner; Black: Runner-up Blue: Third

© 4 8th January 2020