Saturday, 08 May 2021

The Strongest Banks Rankings

2020
2019

In this year’s The Asian Banker Strongest Islamic Banks By Balance Sheet evaluation, Islamic banks in Saudi Arabia achieved the highest average strength score at 3.74 out of 5, followed by Qatar (3.60), Kuwait (3.30) and Pakistan (3.27). This year, financial information in the first half of financial year 2020 (1H FY2020) was collated and incorporated into the assessment of how Islamic banks performed during the COVID-19 pandemic.

The average asset growth of Islamic banks listed 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 recorded by the 200 largest banks in the Middle East and Africa at 10.9% yoy and the 500 largest banks in Asia Pacific at 10.3% yoy. The overall profitability of Islamic banks weakened amid the pandemic. Average return on assets (ROA) stood at 1.1% in 1H FY2020, lower than 1.5% in 1H FY2019, and cost to income ratio was up slightly from 41.3% to 41.5%.

Saudi Arabia-based Al Rajhi Bank has retained its top spot as the strongest Islamic bank. The strength score of the bank dropped from 4.16 in the previous year’s evaluation to 4.05 in 1H 2020, due to the increase in gross non-performing loan (NPL) ratio from 0.85% to 1.02% and loan to deposit ratio from 79% to 82%, along with the drop in profit growth. Nevertheless, the bank still maintained healthy asset quality and robust capitalisation, and recorded a high ROA of 2.4% and a low cost to income ratio of 33%.

Meezan Bank from Pakistan is the strongest Islamic bank in Asia. The operating profit of the bank surged 66% in 1H FY2020 thanks to higher volume of earning assets portfolio and higher underlying rates. The bank recorded a lower cost to income ratio from 47% to 40% and a higher ROA from 1.5% to 2.0%. Meanwhile, the bank maintained strong levels of capitalisation and liquidity.

For a full explanation of the evaluation criteria please click here.

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Strength Rank 2020 Islamic Bank Rank 2020 Bank Country Assets YoY Growth in Loans YoY Growth in Deposits Loan to Deposit Ratio Capital Adequacy Ratio YoY Growth in Operating Profit Return on Asset Cost to Income Ratio Non-interest Income/Total Operating Income Loan Loss Reserves / Gross NPLs Gross Non-Performing Loan Ratio Liquid Assets / Total Deposits and Borrowings Aggregate Strength Score 2020
Score (17.5%) Score (2.5%) Score (2.5%) Score (10.0%) Score (10.0%) Score (5.0%) Score (7.5%) Score (7.5%) Score (7.5%) Score (12.5%) Score (12.5%) Score (5.0%)
11Al Rajhi BankSaudi Arabia4.53.53.02.5 5.0 0.5 5.0 5.0 2.0 5.0 4.0 4.5 4.04
23Kuwait Finance HouseKuwait4.52.53.04.0 4.5 1.0 1.5 4.5 3.0 5.0 3.5 5.0 3.83
35Qatar Islamic Bank Qatar4.02.01.00.0 5.0 2.0 5.0 5.0 4.0 5.0 4.0 2.5 3.80
48Masraf Al Rayan Qatar3.52.02.00.0 5.0 1.0 5.0 5.0 5.0 4.5 4.5 2.0 3.74
535Meezan Bank Pakistan1.01.54.55.0 5.0 5.0 5.0 4.0 1.5 5.0 3.5 5.0 3.68
619Qatar International Islamic Bank Qatar2.02.52.00.5 4.5 2.5 5.0 5.0 4.0 5.0 3.5 4.5 3.53
72Dubai Islamic Bank UAE4.55.05.01.0 4.5 0.0 4.5 5.0 3.0 3.5 2.5 2.5 3.49
86Alinma BankSaudi Arabia4.04.03.51.0 5.0 0.0 4.0 4.5 1.5 5.0 3.0 2.5 3.46
94Maybank Islamic Malaysia4.52.52.00.5 5.0 0.0 1.0 3.5 1.5 5.0 4.5 2.5 3.33
1013Bank AlBiladSaudi Arabia2.54.52.50.5 4.5 1.0 4.0 3.5 2.5 5.0 4.0 3.5 3.31
1112Bank AlJaziraSaudi Arabia2.54.53.02.5 5.0 2.0 2.0 2.5 3.0 5.0 4.0 1.5 3.30
1221Bank Islam Malaysia Malaysia2.02.52.52.0 5.0 1.0 2.0 3.5 2.5 5.0 4.5 4.0 3.29
1315Kuveyt Turk Katilim Bankasi #Turkey2.52.52.54.5 5.0 3.0 4.5 3.5 3.0 2.5 1.5 5.0 3.25
1438Jordan Islamic BankJordan1.04.52.02.5 5.0 1.5 4.0 3.5 2.5 5.0 3.0 4.0 3.18
159Al Baraka Banking Group Bahrain3.01.02.54.5 4.5*5.0 1.5 3.0 5.0 3.5*2.0*0.0 3.16
1614Dukhan Bank Qatar2.50.00.00.0 4.5 5.0 4.0 5.0 4.5 4.0 2.5 1.5 3.15
1629Hong Leong Islamic Bank Malaysia1.05.03.52.0 4.0 2.5 2.5 5.0 1.5 5.0 4.5 2.5 3.15
1640Vakif Katilim Bankasi #Turkey1.02.02.53.5 5.0 5.0 4.5 5.0 3.5 2.5 1.5 5.0 3.15
1911Bank Rakyat Malaysia3.02.01.52.0 2.5 0.5 4.0 5.0 1.0 5.0 3.5 4.0 3.11
2057Islamic International Arab Bank Jordan0.51.02.05.0 5.0 0.0 4.0 3.5 2.0 5.0 3.0 4.5 3.10
2134Bank Syariah MandiriIndonesia1.01.03.53.5 4.5 2.5 4.0 3.5 2.0 5.0 3.0 2.5*3.08
2259Bank Nizwa Oman0.01.03.53.0 3.5 3.0 3.5 3.5 4.0*5.0 4.5 2.5 3.06
2320Public Islamic Bank Malaysia2.03.52.02.0 2.3 3.0 1.0 4.5 2.0 5.0 5.0 3.0 3.03
2499Bank Net Indonesia SyariahIndonesia0.00.05.05.0 5.0 0.0 5.0 0.0 0.0 5.0 5.0 5.0 3.00
2516Boubyan Bank Kuwait2.03.54.01.0 4.5 0.0 1.5 3.5 1.5 5.0 4.0 4.0 2.99
2622Ahli United Bank KuwaitKuwait1.54.03.00.0 4.0 0.0 2.0 4.5 2.5 5.0*4.0*3.5 2.91
2676Bank BTPN Syariah Indonesia0.03.52.02.0 5.0 0.0 5.0 4.0 0.5 5.0 3.5 4.5 2.91
2685Bank BCA SyariahIndonesia0.02.02.52.5 5.0 4.0 1.5 2.5 1.0 5.0 4.5 4.5*2.91
2923Sharjah Islamic Bank UAE1.53.53.01.5 5.0 1.0 3.0 4.0 2.5 3.5 2.5 4.5 2.90
3047Al Baraka Bank Egypt Egypt0.55.02.55.0 2.5 0.5 4.5 5.0 1.5 5.0 2.0 3.5 2.86
3074Al Baraka Bank Syria Syria0.01.55.05.0 2.5 5.0 5.0 5.0 1.0 5.0 0.5 5.0 2.86
3250Abu Dhabi Islamic Bank - Egypt Egypt0.55.04.04.0 1.8 0.0 5.0 4.5*1.5*5.0 3.0 4.0 2.86
3392Byblos Bank Syria Syria0.04.55.05.0 2.5 5.0 5.0 5.0 0.5 5.0 0.0 5.0 2.84
3418Emirates Islamic Bank UAE2.03.51.52.0 5.0 0.0 0.5 3.5 2.5 5.0 1.5 4.5 2.78
3527AmBank Islamic Malaysia1.54.04.01.5 4.5 0.0 1.0 4.0 1.0 4.5 3.5 3.5 2.76
367Abu Dhabi Islamic Bank UAE3.52.01.02.5 5.0 0.0 2.5 3.5 2.5 2.0 1.5 3.5 2.75
3763Safwa Islamic BankJordan0.03.04.53.5 2.5 3.5 1.5 3.0 2.5 5.0 3.5 4.0 2.73
3852Bank BNI SyariahIndonesia0.51.54.04.0 5.0 0.0 3.0 2.5 1.0 4.5 2.5 3.5*2.69
3910CIMB Islamic Bank Malaysia3.02.52.52.0 4.5 0.0 1.0 3.5 1.5 2.0 3.5 3.5 2.68
3988Jaiz Bank Nigeria0.00.04.55.0 4.5*5.0 4.0 1.5 4.0 2.5 1.0 4.5 2.68
4126MBSB Bank Malaysia1.53.51.00.0 2.5 4.5 0.0 5.0 2.0 5.0 3.0 4.5 2.66
4280Bank NTB SyariahIndonesia0.00.54.54.0 5.0*0.0 4.0 2.0 1.5 3.0*4.0*3.0 2.64
4328Turkiye Finans Katilim Bankasi #Turkey1.01.82.32.0 4.5 5.0 4.0 4.0 3.0 1.8 1.0 4.5 2.63
4454Alliance Islamic Bank Malaysia0.52.51.51.5 4.0 1.5 0.5 5.0 1.0 5.0 3.5 4.0 2.63
4581Cham Islamic BankSyria0.00.55.02.0 2.5 5.0 5.0 5.0 1.0 3.5*2.0*5.0 2.61
4669BankIslami Pakistan Pakistan0.01.03.04.5 5.0 5.0 1.5 2.5 1.5 4.0 1.0 5.0 2.60
4717RHB Islamic Bank Malaysia2.03.02.00.0 2.3 2.5 0.5 5.0 1.5 4.0 4.5 2.5 2.59
4860Khaleeji Commercial Bank Bahrain0.04.51.05.0 5.0 3.5 3.5 3.5 3.5 2.5*0.0*3.5 2.59
4930Kuwait International Bank Kuwait1.03.02.50.0 5.0 0.0 0.5 2.0 2.0 5.0*3.5*4.5*2.56
5024Islami Bank Bangladesh Bangladesh1.54.53.52.0 3.5*0.0 1.5 3.0 3.0 5.0*2.5*0.0 2.55
5036Faisal Islamic Bank of Egypt Egypt1.02.53.05.0 2.5 0.0 4.5 3.5 0.5 3.5*2.0*4.5 2.55
5041Al Salam Bank-Bahrain Bahrain1.04.54.02.5 5.0 2.0 1.5 3.5 1.5 2.5 2.0 4.0 2.55
5332Bank Islam Brunei Darussalam **Brunei1.02.03.05.0 2.5 0.5 4.5 4.0 1.0 2.0 2.5 5.0 2.54
5433Ithmaar Bank Bahrain1.01.53.01.5 3.5 5.0 0.5 1.5 4.0 4.5 1.5 4.5 2.51
5451OCBC Al-Amin BankMalaysia0.52.52.01.5 5.0 1.0 1.0 3.5 2.0 3.5 3.0 4.5 2.51
5646HSBC Amanah Malaysia Malaysia0.53.02.50.5 5.0 0.0 0.5 4.0 1.5 4.0 3.0 4.5 2.44
5667Dubai Islamic Bank PakistanPakistan0.03.02.01.0 4.5 2.5 4.0 3.0 1.5 2.5 3.0 4.5 2.44
5861Al Baraka Islamic BankBahrain0.03.54.05.0 5.0 2.0 0.5 1.0 3.5 3.0 1.5 4.0 2.43
5942Bank Muamalat Malaysia Malaysia1.03.51.52.5 4.5 0.0 0.5 0.5 1.5 3.5 4.0 4.5 2.40
5966Turkiye Emlak Katilim Bankasi #Turkey0.02.32.51.0 5.0 5.0 0.5 4.0 3.5 2.5 1.8 4.0 2.40
5997Bank Victoria SyariahIndonesia0.05.03.03.0 5.0 0.0 0.5 0.0 2.5 5.0 4.0 0.0 2.40
6270Bank Aceh SyariahIndonesia0.01.50.54.0 5.0 0.0 3.5 1.5 0.5 4.5 3.5 0.0 2.39
6384Bank Mega SyariahIndonesia0.05.04.02.5 5.0 5.0 2.0 1.0 0.0 1.5 3.5 3.0*2.29
6437Ziraat Katilim Bankasi #Turkey1.00.82.50.0 4.0 5.0 1.5 5.0 1.5 2.5 1.5 3.0 2.26
6553Bank BRIsyariah Indonesia0.51.05.02.0 2.5 5.0 1.5 3.0 1.0 3.5 2.5 2.5 2.24
6598Al Salam Bank - SudanSudan0.00.04.53.0 2.5*5.0 5.0 5.0 4.5 0.0 0.0 5.0 2.24
6779MCB Islamic Bank Pakistan0.05.04.53.0 3.5 5.0 0.5 0.0 1.5 1.0 4.5 4.5 2.21
6848Kuwait Finance House (Bahrain)Bahrain0.51.54.03.5 5.0 0.0 1.0 2.5 4.5 1.0*2.0*1.5 2.16
6931Albaraka Turk Katilim Bankasi #Turkey1.00.52.52.5 4.5 5.0 0.5 1.5 2.5 1.5 1.0 4.5 2.13
7044Export Import Bank of BangladeshBangladesh1.03.02.50.0 3.5*0.0 1.5 3.0 3.5 3.5*2.5*0.0 2.10
7158Shahjalal Islami Bank Bangladesh0.51.52.51.0 4.0*0.0 2.0 3.5 3.0 3.0*2.5*0.0 2.09
7239Ajman Bank UAE1.03.00.50.0 4.0 0.0 1.0 3.0 3.5 3.0*1.5*3.5 2.06
7271Standard Chartered Saadiq Malaysia0.04.01.00.0 2.5 0.0 1.0 2.0 2.0 4.0 4.0 5.0 2.06
7472Al Rajhi Banking & Investment Corporation (Malaysia) Malaysia0.03.51.01.0 2.5 0.0 0.5 0.0 2.0 5.0 4.0 3.0 1.96
7587Amana Bank Sri Lanka0.02.53.03.5 4.5 0.0 1.0 0.5 2.0 2.0 2.0 4.5*1.95
7625Warba Bank Kuwait1.51.55.00.0 4.0 0.0 0.0 3.5 2.0 0.0 3.0 4.0 1.91
7694Safa BankPalestine0.00.55.02.5 2.5 0.0 0.0 0.0 2.0 3.5*3.5*5.0 1.91
7845Al-Arafah Islami Bank Bangladesh0.52.01.50.5 4.0*0.0 1.0 2.5 3.0 3.0*2.5*0.0 1.89
7868Alizz Islamic Bank Oman0.03.00.51.0 3.5 0.0 0.0 0.0 2.5 5.0*3.0 2.0 1.89
8065Kuwait Finance House (Malaysia) Malaysia0.01.01.02.0 5.0 0.0 0.0 0.0 0.5 4.0 2.0 5.0 1.86
8182Qatar First Bank Qatar0.01.54.55.0 3.0*0.0 0.0 0.0 1.0 5.0 0.0 5.0 1.85
8273Arab Islamic Bank Palestine0.02.54.53.5 1.8 0.0 1.5 1.0 2.0 1.5*3.5*4.5 1.84
8378Bank Panin Dubai SyariahIndonesia0.04.01.50.5 4.5 0.0 0.5 0.0 2.0 3.5 2.5 2.0 1.78
8443First Security Islami Bank Bangladesh1.02.03.50.5 3.0*0.0 1.0 2.0 1.5 3.0*2.5*0.0 1.75
8449Social Islami Bank Bangladesh0.51.03.51.5 3.5*0.0 0.5 1.5 3.0 3.0*2.0*0.0 1.75
8489Albaraka Bank South Africa0.03.53.03.0 4.0 0.0 1.5 0.5 1.5 0.5 2.5 4.5*1.75
8775Palestine Islamic BankPalestine0.00.02.53.0 1.8*0.0 1.5 1.5 3.0 2.0*2.5*4.5 1.74
8856Bank Muamalat IndonesiaIndonesia0.53.00.53.5 3.5 0.0 0.5 0.0 4.5 1.0 2.0 1.0 1.68
8983First Energy Bank Bahrain0.04.00.00.0 5.0 0.0 0.0 0.0 0.0 5.0*0.5*5.0*1.66
9064ABC Islamic BankBahrain0.01.00.00.0 5.0 1.0 4.0 5.0 2.5 0.0 0.0 0.5 1.59
9155Bahrain Islamic Bank Bahrain0.52.01.52.5 4.5 0.0 0.5 1.5 1.5 1.5*0.0*3.0 1.53
9191Bank Syariah BukopinIndonesia0.01.50.50.0 4.0 0.0 0.5 0.0 2.0 3.5 2.0 2.0 1.53
9386Bank Jabar Banten SyariahIndonesia0.05.01.00.0 2.3 0.0 1.0 0.0 1.0 3.0 3.0 1.0 1.38
9493Gulf African BankKenya0.03.01.52.5 2.3 5.0 1.0 0.0 3.0 0.0 0.0 4.5 1.36
95100Citi Islamic Investment BankBahrain0.02.00.00.0 5.0 0.5 5.0 2.0 1.5 0.0 0.0 0.0 1.34
9695First Community BankKenya0.04.01.54.5 0.5 4.5 0.5 0.0 4.0 0.0 0.0 4.5 1.33
9762Islamic Bank of ThailandThailand0.00.51.04.5 0.0 0.0 0.0 0.0 1.5 3.0 0.0 2.5 0.99
9890Bank Alkhair Bahrain0.04.52.55.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 4.5 0.78
9996Venture Capital Bank Bahrain0.00.00.00.0 1.5 0.0 0.0 0.0 2.0 0.0 0.0 5.0*0.59
10077Kurdistan International Islamic Bank for Investment and Development Iraq0.04.01.00.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.13

Notes: (1) 5 = Highest score, 0 = Lowest score (2) * & ** FY2019 data. (3)) # Adjusted for balance sheet growth and asset quality.
Source: Asian Banker Research