Monday, September 9, 2013

TMR: AmIslamic Bank confident of achieving 20% growth for FY13

by Azli Jamil   

AmIslamic Bank Bhd, the Islamic banking arm of Am- Bank Group, expressed confidence in achieving 20% growth in deposits and financing for financial year ending March 31, 2013 (FY13), helped by many campaigns conducted last year.

“Our growth percentage on financing and deposits are double-digits, on the higher teens, and we hope to touch 20% growth on deposits and financing by financial year ending March 31, 2013,” chief executive officer Datuk Mahdi Murad told the media after the “It’s Gold! Let’s Celebrate” campaign grand final event in Kuala Lumpur yesterday.

The bank embarked on the “It’s Gold! Let’s Celebrate” campaign which commenced on July 23 and ended on Oct 31 last year. The campaign was opened to all new and existing customers and consisted of contests and promotions focused on Islamic products offered ie deposits, personal financing and credit card.

The objectives of the campaign were to reward existing customers and to increase its customer base from the existing more than one million customers.

Mahdi said, without disclosing numbers, that the bank had achieved its internal targets for each of the existing product lines promoted in the campaign.

“We had a specific target for deposits, focusing on a sixmonth term deposit product that did not follow the mudharabah concept but was under wakallah concept where the rate of return was spelt upfront.

“We have achieved the target of RM500 million deposits under the product”, said general manager, retail, markets and capital balance sheet management Mohamad Sabirin Abdul Rahman.

The bank claims to be the fifth largest Islamic bank in the country with about RM22 billion deposits. “AmIslamic total assets is about 25% of the group’s total assets,” said Mahdi.

For its FY13 financials, AmIslamic contributed 18.9% to the AmBank’s revenue, up from 18.4% for the year before. The bank claims to have about 1.2% gross non-impact financing while the net figure is less than 1%.