Maybank Targets 8 Percent Of Shariah Market by 2015
Bank Maybank Syariah Indonesia expects its market share of Indonesia’s Shariah banking business to reach 8 percent by 2015 from its current 1.6 percent, a top executive said. Dato Sri Abdul Wahid Omar, president and CEO of Maybank said that his aspiration is to become the No. 1 Islamic bank in the Southeast Asian region by 2015 in terms of reach, and this could not be achieved without a presence in Indonesia, the largest market in the region. The bank was formerly called Bank Maybank Indocorp. Bank Indonesia, the country’s central bank, granted it a license this September to operate as an Islamic bank. It became Bank Maybank Syariah Indonesia in October.
Maybank Syariah Indonesia wants its assets to reach Rp 2.8 trillion ($310 million) next year and Rp 28 trillion by 2015 with an 8 percent market share in Shariah banking. Its assets currently total Rp 1.4 trillion. The bank is owned by Maybank Group, Malaysia’s largest banking group. Its Islamic financing unit, Maybank Islamic Berhad, is the 17th-largest Islamic bank in the world, with total assets of $12.4 billion. The rankings are dominated by Iranian banks. The parent company hopes to boost its Shariah business outside Malaysia by focusing on Indonesia and Singapore. Maybank Group’s goal is to expand its Islamic financing unit to include one-third of its domestic loans and advances.
The goal for Maybank Syariah Indonesia, currently the country’s seventh-largest Shariah bank, was to break into the top three within five years.
“In order to reach all these targets, we need to grow our CAGR by 85 percent per annum, an ambitious target. But with Indonesia’s vast market, Dato’ Sri Wahid believed they could reach it. Earlier this week, Mulya Siregar, Bank Indonesia’s deputy director for Islamic banking, said Shariah-compliant banking assets in Indonesia were expected to increase 45 percent in 2011 to Rp 130 trillion.
