In August, the 12-year-old Islamic subsidiary of HSBC created HSBC Amanah Premier, a cross-border Islamic banking and wealth management platform and the world’s first Shariah-compliant banking service aimed at internationally mobile, high-net-worth consumers.
The move capitalizes on the parent’s global footprint and its commitment to grab a rising share of the Islamic finance market, which is projected to grow 20% annually in the coming years. In July, the bank opened its first dedicated Islamic banking branch in the MENA (Middle East and North Africa) region outside Saudi Arabia in Qatar, to provide retail and corporate customers with Shariah-compliant accounts and banking services.
In September, the bank announced it would open 18 more branches in Malaysia within the next two to three years, investing between $11 million and $17 million in total. The bank benefits from an integrated financial services platform, giving it the power to quickly grab market share. HSBC Amanah is targeting mid-market professionals and aims to sign up at least 150,000 customers.
Underscoring HSBC Amanah’s trail-blazing status, in the first half of this year, the bank arranged $1.6 billion of global sukuk deals, around 25% of the total. Noted deals include the creation in May of a $1.9 billion sukuk bond for Saudi Electric Company, the biggest transaction of its kind from any Gulf Co-operation Council utility and the longest maturity for a Saudi sukuk issue.
Over the past year, HSBC has entrenched its status as the leading international bank in Islamic finance – and a wise move too, as Standard Chartered’s investment banking arm beefs up its capabilities and presence.