Friday, 2 December 2022

The Strongest Banks Rankings

2021
2020 2019

Strongest Islamic banks in 2021

In this year’s The Asian Banker Strongest Islamic Banks By Balance Sheet evaluation, Al Rajhi Bank remained on top of the ranking of the strongest Islamic banks based on a detailed and transparent scorecard that evaluates Islamic banks on six areas of balance sheet financial performance, namely the ability to scale, balance sheet growth, risk profile, profitability, asset quality and liquidity.

Saudi Arabian and Qatari Islamic banks attained the highest average strength score of 3.91 and 3.62 out of 5 respectively. Kuwaiti and Turkish banks achieved higher average strength score than that recorded by all the 100 Islamic banks, at 3.27 out of 5. The average return on asset (ROA) of Saudi Arabian and Qatari Islamic banks reached 1.91% and 1.52% respectively, compared with the global average of 1.05%. Saudi Arabian Islamic banks remained well capitalised, maintaining a 19.5% average capital adequacy ratio (CAR), while the average gross non-performing loan (NPL) ratio and loan loss reserves (LLRs) to gross NPLs ratio stood at 1.3% and 251% respectively.

The top 10 Strongest Islamic Banks comprise three Saudi Arabian banks, three Qatari banks, two Turkish banks and one each from Kuwait and Pakistan. Al Rajhi Bank performed strongly in most indicators and registered a 22% growth in assets. Qatar Islamic Bank placed second, with a 1.8% ROA and a 20.1% cost to income ratio. It maintained a CAR of 19.4% and its asset quality also remained relatively sound. However, its liquid assets to total deposits and borrowings ratio was at a low level of 12.7%. Dubai Islamic Bank, the second largest Islamic bank in the world, ranked 11th in the ranking of the Strongest Islamic Banks.

Meezan Bank, Bank Islam Malaysia (BIMB) and Maybank Islamic are the top three strongest Islamic banks in Asia. The three banks maintained strong levels of capitalisation as evidenced by the CAR of above 18%. Meezan Bank excelled in profitability and liquidity, while BIMB and Maybank Islamic showed better performance in asset quality. The ROA of Meezan Bank improved from 1.6% in 2019 to 1.8% in 2020, and its liquid assets to total deposits and borrowings ratio was higher at 67% in 2020. Maybank Islamic saw its ROA weaken to 0.6% from 1.08%, and BIMB’s ROA was also reduced from 0.97% to 0.82%. However, the gross NPL ratio of Meezan Bank deteriorated to 2.8% in 2020 from 1.8% in the year earlier. Both BIMB and Maybank Islamic witnessed improvement in asset quality. The gross NPL ratio of BIMB was down from 0.86% to 0.67%, while the gross NPL ratio of Maybank Islamic improved from 1.62% to 1.19%.

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

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Strength Rank 2021 Islamic Bank Rank 2021 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 2021
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 Arabia5.04.54.02.5 5.0 1.0 5.0 5.0 2.0 5.0 4.5 4.0 4.24
25Qatar Islamic Bank Qatar4.02.01.50.5 5.0 2.0 5.0 5.0 4.0 5.0 4.0 2.5 3.85
337Vakif Katilim BankasiTurkey1.05.05.03.5 5.0 5.0 4.5 5.0 3.0 5.0 3.5 5.0 3.81
43Kuwait Finance HouseKuwait4.53.03.03.5 4.5 0.0 2.0 4.5 2.5 5.0 3.5 5.0 3.75
58Masraf Al Rayan Qatar3.53.51.50.0 5.0 1.5 5.0 5.0 4.5 4.5 4.0 2.5 3.71
516Kuveyt Turk Katilim BankasiTurkey2.54.55.04.5 5.0 3.5 4.0 3.5 2.0 5.0 2.5 5.0 3.71
729Meezan Bank Pakistan1.02.04.55.0 5.0 4.5 5.0 4.5 1.5 5.0 3.0 5.0 3.64
86Alinma BankSaudi Arabia4.04.03.51.5 5.0 0.5 4.0 4.5 2.0 5.0 3.5 2.5 3.63
921Qatar International Islamic Bank Qatar2.02.53.50.0 4.5 2.5 4.5 5.0 4.0 5.0 4.0 4.0 3.53
1012Bank AlBiladSaudi Arabia3.04.02.01.0 4.5 1.5 4.5 3.5 2.5 5.0 4.0 3.5 3.48
112Dubai Islamic Bank UAE4.54.54.51.0 5.0 0.0 3.5 5.0 3.0 3.5 2.0 3.0 3.41
1210Al Baraka Banking Group Bahrain3.02.02.04.5 4.0 4.5 1.5 3.5 5.0 4.0 2.0 4.0 3.39
1319Bank Islam Malaysia Malaysia2.03.02.52.0 5.0 2.0 2.0 3.0 2.5 5.0 4.5 4.5 3.34
144Maybank IslamicMalaysia4.52.51.50.0 5.0 1.0 1.5 4.5 1.0 5.0 4.0 2.0 3.31
1528Turkiye Finans Katilim BankasiTurkey1.55.05.03.0 4.5 4.5 2.5 4.0 2.5 4.5 2.0 5.0 3.26
1627Warba Bank Kuwait1.53.04.50.0 4.5 4.5 0.5 5.0 4.5 5.0 3.5 4.0 3.25
1717Boubyan Bank Kuwait2.54.53.51.5 4.5 1.0 1.5 3.5 2.0 5.0 4.0 4.0 3.21
1814Dukhan Bank Qatar2.53.03.00.0 4.5 5.0 1.5 5.0 4.0 4.0 3.0 2.5 3.19
1930Hong Leong Islamic Bank Malaysia1.03.53.02.0 4.0 2.5 2.5 5.0 2.5 5.0 4.5 2.5 3.18
1934Ziraat Katilim BankasiTurkey1.05.05.00.5 4.0 4.5 4.0 5.0 2.0 4.5 3.0 4.5 3.18
2113Bank AlJaziraSaudi Arabia2.52.52.03.0 5.0 2.5 0.5 3.0 3.0 5.0 3.5 1.5 3.15
2255Islamic International Arab BankJordan0.53.02.55.0 5.0 0.0 4.0 3.5 1.5 5.0 3.0 4.5 3.13
2346Al Baraka Bank Egypt Egypt0.54.01.55.0 2.5 4.0 5.0 5.0 2.0 5.0 2.0 4.5 3.11
2423Sharjah Islamic Bank UAE1.54.04.02.0 5.0 0.5 2.0 3.5 5.0 4.0 2.5 4.5 3.09
2539Bank Muamalat Malaysia Malaysia1.03.53.02.5 4.5 5.0 2.0 2.0 2.0 4.5 4.0 4.5 3.08
2620Public Islamic Bank Malaysia2.02.51.52.0 2.3 3.0 1.5 5.0 2.0 5.0 5.0 3.0 3.07
2738Jordan Islamic BankJordan1.03.52.02.5 5.0 0.5 3.5 3.5 2.5 5.0 3.0 3.5 3.04
2878Bank Mega SyariahIndonesia0.00.54.54.5 5.0 5.0 4.0 4.0 2.0 2.0 3.5 5.0 3.03
2948Kuwait Finance House (Bahrain)Bahrain0.53.02.04.0 5.0 0.0 2.0 2.5 4.5 5.0 3.5 2.5 3.00
307Abu Dhabi Islamic Bank UAE3.51.51.02.5 5.0 0.0 4.0 3.5 3.0 2.5 1.5 4.0 2.98
3025AmBank Islamic Malaysia1.53.04.02.5 4.5 1.0 0.5 4.5 1.0 5.0 3.5 4.5 2.98
3060Turkiye Emlak Katilim BankasiTurkey0.05.05.00.0 5.0 5.0 1.5 2.5 3.0 5.0 4.0 4.0 2.98
339CIMB Islamic Bank Malaysia3.02.52.52.0 4.5 2.5 1.0 4.0 1.5 3.0 3.5 3.5 2.96
3431Albaraka Turk Katilim BankasiTurkey1.05.04.53.0 4.0 5.0 1.5 2.5 3.0 4.0 2.5 4.5 2.95
3547Abu Dhabi Islamic Bank - Egypt Egypt0.54.54.04.5 1.8 0.0 5.0 4.5 1.5 5.0 3.5 4.0 2.94
3611Bank Rakyat Malaysia3.02.51.02.0 2.5 0.0 2.0 4.5 1.0 5.0 3.5 4.0 2.90
3659Bank Nizwa Oman0.52.53.53.5 3.5 3.0 3.0 3.0 4.5 3.5 3.5 3.0 2.90
3665ABC Islamic Bank Bahrain0.04.00.50.0 5.0 0.5 4.0 5.0 2.5 5.0 5.0 0.5 2.90
3688Jaiz Bank Nigeria0.04.54.55.0 5.0 5.0 4.5 2.0 4.5 2.5 0.5 4.5 2.90
4077Bank BTPN Syariah Indonesia0.01.51.52.0 5.0 0.0 5.0 4.0 0.5 5.0 3.5 5.0 2.88
4115RHB Islamic Bank Malaysia2.53.02.50.0 2.3 2.0 1.0 5.0 2.0 5.0 4.5 2.5 2.87
4222Islami Bank Bangladesh Bangladesh2.03.54.52.5 3.5 0.0 1.0 2.0 3.0 5.0 3.0 3.5 2.80
4386Bank BCA SyariahIndonesia0.01.02.53.5 5.0 3.5 2.0 3.0 1.0 5.0 4.5 0.0 2.79
4424Ahli United Bank KuwaitKuwait1.51.52.50.5 4.0 0.0 1.5 4.5 2.0 5.0 3.5 3.5 2.74
4563Safwa Islamic BankJordan0.04.03.55.0 2.5 2.0 1.5 3.0 2.0 5.0 3.5 4.0 2.73
4672Bank Aceh SyariahIndonesia0.02.01.04.0 5.0 0.0 4.0 1.0 1.0 5.0 3.5 4.0 2.71
4756Alliance Islamic BankMalaysia0.51.51.52.0 5.0 1.5 0.5 4.5 1.0 5.0 3.0 4.5 2.69
4891Amana Bank Sri Lanka0.02.53.53.5 4.5 1.5 1.0 1.5 2.0 5.0 3.5 4.5 2.68
4918Emirates Islamic Bank UAE2.02.51.52.0 5.0 0.0 0.0 3.0 2.0 5.0 1.5 5.0 2.66
4926MBSB Bank Malaysia1.51.51.00.0 2.5 4.0 1.5 5.0 1.5 5.0 3.0 4.5 2.66
5132Kuwait International Bank Kuwait1.02.02.50.0 5.0 0.0 0.5 2.5 2.5 5.0 3.5 4.5 2.61
5270Dubai Islamic Bank PakistanPakistan0.03.03.01.5 4.5 1.0 3.0 3.0 2.0 4.0 3.0 4.5 2.58
5341Al Salam Bank-Bahrain Bahrain1.04.04.02.5 5.0 2.0 1.0 3.0 1.0 3.0 2.5 3.5 2.53
5461Khaleeji Commercial Bank Bahrain0.00.51.05.0 5.0 5.0 2.0 3.5 2.5 2.5 1.0 3.0 2.48
5476AlBaraka Bank (Pakistan) Pakistan0.04.04.04.5 3.5 5.0 1.0 1.5 2.5 3.5 1.5 5.0 2.48
5636Bank Islam Brunei Darussalam Brunei1.01.50.55.0 2.5 0.0 4.0 4.0 1.5 2.0 2.5 5.0 2.44
5779Syria International Islamic Bank Syria0.05.05.00.0 1.5 5.0 5.0 5.0 4.0 2.5 1.0 5.0 2.43
5844Export Import Bank of BangladeshBangladesh1.03.52.51.0 3.5 0.0 1.5 3.0 4.0 4.0 2.5 2.0 2.39
5968BankIslami Pakistan Pakistan0.01.04.05.0 4.5 1.5 1.5 2.0 1.0 4.0 1.0 5.0 2.35
6033Ithmaar Bank Bahrain1.01.04.02.0 3.5 0.0 0.0 0.0 4.5 5.0 2.0 4.5 2.33
6045Al-Arafah Islami Bank Bangladesh0.52.02.01.5 4.0 0.0 1.5 3.0 3.0 4.0 2.5 3.0 2.33
6085Bank NTB SyariahIndonesia0.03.52.02.0 5.0 0.0 4.0 2.0 0.0 2.5 4.0 3.0 2.33
6340Affin Islamic Bank Malaysia1.02.02.00.5 2.5 5.0 0.5 3.0 3.0 2.5 3.5 4.0 2.31
6496Maldives Islamic Bank Maldives0.02.03.54.5 2.5 0.0 5.0 3.0 3.0 1.5 2.0 5.0 2.30
6557Shahjalal Islami Bank Bangladesh0.51.02.01.5 3.5 0.0 1.5 3.0 4.0 3.5 2.5 3.0 2.25
6690Iraqi Islamic Bank For Investment & DevelopmentIraq0.00.50.55.0 5.0 2.5 5.0 4.5 1.5 0.0 0.0 5.0 2.23
6754Bank Muamalat IndonesiaIndonesia0.51.01.04.0 4.0 5.0 0.5 0.0 4.5 2.0 2.5 1.5 2.20
6843First Security Islami Bank Bangladesh1.03.53.01.5 3.5 0.5 1.5 3.0 2.0 3.0 2.5 2.0 2.19
6852OCBC Al-Amin BankMalaysia0.50.51.01.0 5.0 1.0 1.0 4.0 2.0 2.5 2.0 4.5 2.19
7074Arab Islamic Bank Palestine0.04.54.53.5 1.8 1.5 1.5 1.5 2.5 2.5 3.5 4.5 2.17
7175Palestine Islamic BankPalestine0.03.52.53.0 2.0 1.5 2.0 2.0 3.0 3.0 2.5 4.5 2.14
7250HSBC Amanah MalaysiaMalaysia0.51.51.00.0 5.0 0.0 1.0 3.5 2.0 2.5 2.5 4.5 2.11
7364Union BankBangladesh0.03.03.50.0 3.0 2.0 1.5 3.5 1.0 4.5 3.0 1.5 2.10
7466Alizz Islamic Bank Oman0.04.53.01.0 4.5 0.0 0.0 0.0 2.5 5.0 2.5 2.5 2.08
7542Ajman Bank UAE1.01.01.00.0 4.5 0.0 0.5 4.0 3.0 3.0 1.5 3.0 2.06
7551Social Islami Bank Bangladesh0.53.53.01.0 3.5 0.0 1.0 2.5 3.0 3.5 2.0 2.5 2.06
7582Bank Panin Dubai SyariahIndonesia0.02.00.50.0 5.0 0.0 0.5 0.0 4.5 4.0 3.0 2.5 2.06
7853Al Hilal Bank UAE0.50.50.51.5 4.5 0.0 0.5 0.0 1.5 4.0 3.0 4.5 2.04
7867Kuwait Finance House (Malaysia) Malaysia0.00.50.51.5 5.0 0.5 0.0 1.5 1.0 4.5 2.0 5.0 2.04
8035Faisal Islamic Bank of EgyptEgypt1.01.53.05.0 2.5 1.5 5.0 4.0 0.5 0.0 0.0 5.0 2.01
8171Standard Chartered Saadiq Malaysia0.01.03.50.0 2.5 2.5 0.5 2.0 3.0 3.0 3.0 5.0 1.96
8181MCB Islamic Bank Pakistan0.05.04.01.5 3.5 5.0 0.5 0.0 1.5 0.0 4.5 4.5 1.96
8349Bank of KhartoumSudan0.54.05.05.0 1.3 5.0 1.5 1.5 5.0 0.0 0.0 5.0 1.94
8473Al Rajhi Banking & Investment Corporation (Malaysia) Malaysia0.01.00.51.0 2.5 0.0 0.0 0.0 1.5 5.0 4.5 3.0 1.88
8595Safa BankPalestine0.05.05.02.0 2.5 0.0 0.0 0.0 2.0 2.5 3.5 5.0 1.86
8669Banque Al Baraka D'Algerie Algeria0.01.01.52.5 0.0 0.0 4.5 5.0 2.5 2.0 1.5 5.0 1.84
8689Albaraka Bank South Africa0.01.04.04.0 4.5 0.0 1.0 0.5 1.5 0.5 2.5 5.0 1.84
8893Bank Syariah BukopinIndonesia0.00.50.50.0 5.0 4.5 0.5 0.0 4.5 2.0 1.5 2.5 1.81
8983Qatar First Bank Qatar0.00.50.55.0 4.0 0.0 0.0 0.0 0.0 5.0 0.0 5.0 1.78
9058Bahrain Islamic Bank Bahrain0.51.51.52.0 4.0 0.5 0.0 1.5 1.5 2.5 2.0 2.0 1.73
9199First Community BankKenya0.04.53.54.0 1.0 5.0 3.0 0.5 3.5 0.0 0.0 4.5 1.63
92100Al Jazeera Sudanese Jordanian BankSudan0.05.05.05.0 0.0 0.5 5.0 2.5 2.0 0.0 0.0 5.0 1.61
9397Al Janoob Islamic Bank for Investment and FinanceIraq0.04.54.50.0 5.0 2.0 0.5 0.0 4.5 0.0 0.0 5.0 1.58
9480Kurdistan International Bank for Investment & Development Iraq0.04.02.55.0 0.0 5.0 2.0 2.5 0.0 1.5 0.0 5.0 1.56
9594Gulf African BankKenya0.00.52.04.0 2.5 1.0 3.0 1.5 2.5 0.0 0.0 5.0 1.50
9698Elaf Islamic BankIraq0.00.50.50.0 2.5 5.0 3.5 5.0 0.0 0.0 0.0 5.0 1.48
9787BJB SyariahIndonesia0.02.03.02.5 2.5 1.5 0.5 0.0 0.5 2.5 2.0 2.5 1.46
9862Islamic Bank of ThailandThailand0.01.51.04.5 0.0 0.0 0.0 0.0 2.0 3.5 0.0 2.5 1.11
9992Cihan Bank for Islamic Investment and FinanceIraq0.05.04.55.0 0.0 0.0 1.0 0.0 0.0 0.0 0.0 5.0 0.94
10084International Development Bank for Investment and FinanceIraq0.02.55.05.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 5.0 0.81

Notes: (1) 5 = Highest score, 0 = Lowest score *Scores are only shown to one decimal place, but rankings reflect full information.
Source: TABInsights