Islamic mortgages help boost Malaysian lender

Mon, 22 Aug 2011
The continued rise of Islamic mortgages can be seen in the recent figures from Malaysia's Maybank.

According to its latest data, the lender has seen an 8.9 per cent rise in revenue to MYR 13.42 billion (£2.74 billion).

A proportion of this increase was down to a 54 per cent hike in total income for its Islamic finance arm, 4-traders.com reported.

The division, which lends in a manner that does not contravene Muslim beliefs, took in MYR 1.49 billion in the past 12 months.

Meanwhile, its allowance for losses on financing shrank to MYR 10 million from MYR 350.4 million last year.

These figures were the result of a 47.6 per cent increase in business financing and a 30.7 per cent rise in Islamic mortgages and other types of consumer lending.

Maybank president and chief executive officer Dato Sri Abdul Wahid Omar explained that the strong results are also a reflection of the success of the bank's new 'House of Maybank' structure introduced last year.

"We have seen better revenue and cost efficiencies from the synergies created, and are confident that we are on a firmer path for the future," the website reported him as saying.
Salaam-u-Allaikum
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