Strongest Islamic Banks 2024
In the Strongest Islamic Banks by Balance Sheet evaluation
for this year, Al Rajhi Bank remained the strongest Islamic bank in the world.
Under a comprehensive and transparent scorecard, the banks were evaluated
against six areas of balance sheet financial performance: ability to scale,
balance sheet growth, risk profile, profitability, asset quality, and liquidity
across 14 specific factors. Middle Eastern banks generally recorded better
performance than their Asian counterparts in scale, risk profile, and
profitability, while Asian Islamic banks were better placed in terms of asset
quality.
Albeit the slower growth of the balance sheet, the
performance of the Islamic banking sector around the globe was more rewarding
in FY2023. Saudi Arabia, Turkey, and Kuwait had the maximum average strength
scores among countries surveyed. Saudi Arabian Islamic banks have an advantage
in asset quality and capitalisation but are below their Turkish and Kuwaiti
peers in liquidity. On the other hand, the Turkish Islamic banks are more
profitable while the Kuwaiti banks are quite liquid. In Asia, the Pakistani Islamic
banks have outperformed those of Indonesia and Malaysia in terms of
profitability and liquidity. The Indonesian banks have led in capitalisation
while the Malaysian banks are strong in scale and asset quality.
Strongest Islamic Banks 2024: CLICL HERE
Strongest Islamic Banks 2023
In this year’s Strongest Islamic Banks By Balance Sheet
evaluation, Al Rajhi Bank maintained its standing as the world’s strongest
Islamic bank in the world. The Middle Eastern Islamic banks showed greater
scale and profitability vis-a-vis their Asian counterparts while Asian Islamic
banks displayed a better performance on asset quality. Islamic banks of Saudi
Arabia and Kuwait have shown the highest overall strength with excellent
metrics on capitalisation, liquidity, and profitability. Saudi banks display,
for instance, an average Tier 1 capital ratio of 19% and capital adequacy ratio
of 21%. Kuwaiti banks do better on liquidity, having a weighted liquidity coverage
ratio of 181% versus 134% for Saudi banks. In Asia, Islamic banks in Pakistan
show the highest financial strength on the back of remarkable balance sheet
growth, profitability, and liquidity.
Strongest Islamic Banks 2023: CLICL HERE
Strongest Islamic Banks In 2022
From the year 2007, The Asian Banker started publishing an
annual authoritative ranking of the Strongest Banks in Asia Pacific. It
remained the only one in the world until today. It ranks banks according to
balance sheet strength. Entry into the scorecard is detailed and transparent
which means that the ranking is done on six areas of balance sheet financial
performance: ability to scale, balance sheet growth, risk profile,
profitability, asset quality and liquidity. The ranking has now extended to
banks in the Middle East, Africa and Central Asia as well as Islamic banks
worldwide.
Al Rajhi Bank retained the strongest Islamic bank in the
world, according to this year's The Asian Banker Strongest Islamic Banks By
Balance Sheet consideration. This is based on a detailed and transparent
scorecard which evaluates Islamic banks on six areas of balance sheet financial
performance, namely ability to scale, balance sheet growth, risk profile,
profitability, asset quality, and liquidity. Al Rajhi Bank did well in all
areas excluding liquidity.
Saudi Arabia and Turkey came out strongest average strength
scores on Islamic banks then. Islamic banks in both countries exhibit strong
balance sheet growth and are also well capitalized. Saudi Arabian Islamic banks
displayed good asset quality and profitability, while Turkish Islamic banks
recorded stronger liquidity. Strength score of the Asian Islamic banks was 2.8
out of 5, lower than average for the total of 100 Islamic banks, which was
2.99. Bank Mega Syariah, Maybank Islamic, and Meezan Bank are the three
strongest Islamic banks within Asia.
Strongest Islamic Banks 2022: CLICL HERE
Strongest Islamic Banks In 2021
The Asian Banker has been publishing the world's first and
authoritative annual ranking of the Strongest Banks in Asia Pacific since 2007,
based on the criterion of balance sheet strength. A detailed and transparent
scorecard is used to evaluate the ranking which involves six areas of balance
sheet financial performance: ability to scale, balance sheet growth, risk
profile, profitability, asset quality, and liquidity. The ranking has in fact
continued to include banks from the Middle East and Africa as well as Central
Asia and all Muslim banks.
This year, through The Asian Banker Strongest Islamic Banks
By Balance Sheet evaluation, Al Rajhi Bank came out top in the rankings of
strong Islamic banks. This is based on a detailed and transparent scorecard
that evaluates Islamic banks on six areas of balance sheet financial
performance, namely ability to scale, balance sheet growth, risk profile,
profitability, asset quality and liquidity. The top 10 strongest Islamic banks
are 3 from Saudi Arabia, 3 from Qatar, 2 from Turkey, and 1 from Kuwait and Pakistan.
Meezan Bank, Bank Islam Malaysia and Maybank Islamic are the top three
strongest Islamic banks in Asia.
Saudi Arabian and Qatari Islamic banks attained the highest
average strength score. Saudi Arabian Islamic banks managed to maintain a
relatively high average capital adequacy ratio at 19.5%, with the ratio of
gross non-performing loans ratio to 1.3%, as well as the loan loss reserves to
gross non-performing loans ratio at 251%. The average return on asset of Saudi
Arabian and Qatari Islamic banks reached 1.91% and 1.52% respectively, compared
with the global average of 1.05%.
Strongest Islamic Banks 2021: CLICL HERE
Strongest Islamic Banks In 2020
In 2019, the Asian Banker produced the first authoritative
annual ranking of Strongest Banks in Asia Pacific on the basis of balance sheet
strength. Since then this ranking has been regarded as the reference point in
this field. The detailed scorecard that was consulted in making the ranking
employs a detailed approach in assessing six various aspects of balance sheet
performance: namely ability to scale, balance sheet growth, risk profile,
profitability, asset quality, and liquidity. Since this ranking has expanded
its coverage to banks in the Middle East, Africa, and Central Asia with a
global consideration for Islamic banks.
In the 2020 The Asian Banker Strongest Islamic Banks By
Balance Sheet evaluation, Al Rajhi Bank retained its top position as the
strongest Islamic bank. It uses a detailed and transparent scorecard which
evaluates Islamic banks on six aspects of balance sheet financial performance:
ability to scale, balance sheet growth, risk profile, profitability, asset
quality, and liquidity. This year, financial information for the first half of
the financial year 2020 (1H FY2020) was gathered and incorporated into the assessment
of how Islamic banks performed during the COVID-19 pandemic.
Profitability of Islamic banks weakened through the
pandemic. Average return on assets stood at 1.1% in 1H FY2020 as compared to
1.5% in 1H FY2019 and the cost-to-income ratio increased marginally from 41.3%
to 41.5%. Average asset growth of listed Islamic banks accelerated from 8.7%
year-on-year (yoy) at the end of 1H FY2019 to 13% yoy at the end of 1H FY2020,
which is higher than the average asset growth of 10.9% in yoy recorded by the
200 largest banks in the Middle East and Africa and 10.3% yoy for the 500
largest banks in Asia-Pacific.
Strongest Islamic Banks 2020: CLICL HERE
Strongest Islamic Banks In 2019
The Asian Banker has for the first time published the
authoritative annual ranking of the Strongest Banks in Asia Pacific since 2007,
based on balance-sheet strength. The scorecard used for assessment is detailed
and transparent whereby each year ranking six areas of balance sheet financial
performance: ability to scale, balance sheet growth, risk profile,
profitability, asset quality, and liquidity. Its ranking now also covers banks
in the Middle East, Africa, and Central Asia as well as Islamic banks globally.
The 100 largest Islamic banks posted an average asset growth
of 8% after removing the anomaly caused by MBSB Bank in Malaysia, which
completed the acquisition of Asian Finance Bank in 2018. That is higher than
the average asset growth rates recorded by the 100 largest banks in the Middle
East and the 500 largest banks in Asia Pacific: 5.3% and 5.6%, respectively. On
average, Saudi Arabia achieved the highest strength score at 3.9 out of five,
followed by Kuwait (3.7), Qatar (3.5) and UAE (3.3).
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