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SMBC unit plans Islamic Finance services – Economics & Business Channel
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SMBC unit plans Islamic Finance services

SMBC unit plans Islamic Finance services

Sumitomo Mitsui Banking Corp (SMBC) said its wholly owned subsidiary Sumitomo Mitsui Corp Malaysia Bhd will dispense Islamic financial services as part of the initiative to strengthen SMBC’s operations in the Asia-Pacific region.

The ability of SMBC Malaysia to offer Islamic finance services in Malaysia, the key market in Asian Islamic finance, will translate into better services to meet client needs, contributing to the development of the financial markets in Malaysia, the bank said in a statement issued on Tuesday.

With the approval from Malaysian authorities on Feb 10, 2014, secured, SMBC Malaysia became the second entity in the SMBC group to offer Islamic finance services. The first was Sumitomo Mitsui Banking Corp Europe Ltd, the bank said.

SMBC Malaysia’s total assets as at Dec 31, 2013, stood at RM3.33 billion.

The bank recorded pretax profit of RM23.5 million for the nine months ended Dec 31, 2013.

The bank said it foresees the growth of the Malaysian banking industry to remain stable for the coming years.

For the financial year ending March 31, 2014, the bank will continue to offer basic commercial banking services such as loan, deposit, foreign-exchange, derivatives and cash management services to both Japanese and non-Japanese clients.

Total assets at Dec 31, 2013, stood at RM3.33 million, RM743.4 million higher compared to March 31, 2013.

Loans, advances and financing recorded an increase of RM275.8 million, followed by increases in deposits and placements with banks and other financial institutions of RM261.1 million, and cash and short term funds at RM206.4 million.

The Islamic finance market is continuing to expand mainly driven by the high economic growth of Muslim states, particularly in Malaysia which launched International Islamic Finance Centre Initiative in August 2006 and is playing a leading role in the development of Asian Islamic finance market as a major business hub.