CAPITAL MARKETS - Sukuk income to be injected to giant projects

www.invest.gov.tr  -Hurriyet - According to the bankers, Turkey will secure financial resources from a brand-new sector with its new Islamic banking product and that the country can finance mega-projects such as the construction of the third bridge with this income. The total volume of global sukuk issuance was around USD 90 billion in 2011, whereas the same amount was achieved during the first six months of this year. Meanwhile, Qatar hit a record issuance worth a total of USD 4 trillion in July, and the size of the Islamic financial services sector is expected to reach USD 2.8 trillion by 2015. Turkey, which has so far lagged behind in the sector, is now taking the first step to close the gap. (source)

CAPITAL MARKETS - Turkey takes first steps to Sukuk

www.cpifinancial.net - A statement from the Undersecretariat of the Treasury in Turkey said, “Citigroup, HSBC and Liquidity House (a Kuwait Finance House subsidiary) have been mandated to explore opportunities for a possible Lease Certificate issuance in the international capital markets.” (source)

BANKING - Kuwait Finance House announces 11.4% increase in deposits, 11.2% increase in total assets - Kuveyt Turk going strong

www.ameinfo.com - Kuwait Finance House (KFH) Chairman Sameer Al-Nafisi announced that KFH has achieved total revenues of KD182.8m during the first quarter of 2012.

Total profits reached KD57.4m, including KD36.9m estimated profit for investment depositors. Net profit for shareholders reached KD20.1m, while earnings per share reached 7 fils. Total assets increased to KD14.2bn, with KD1.4bn or 11.2% increase over the same period last year. Deposits increased to KD9.2bn, with KD938m or 11.4% increase over same period last year.Total shareholders' equity reached KD1.3bn, with KD14m or 1.1% increase over same period last year.

Al-Nafisi highlighted the bank's ability to implement its plans and strategies even in the most challenging of time, which increases the potential of improving financial indicators during the coming period.  (source)

BANKING - Al-Omar: KFH-Turkey achieves TL 195 million net profit with 22% increase in 2011

Chairman of Kuwait Finance House in Turkey (KFH-Turkey) Mohammed Al-Omar.

Iwan: 16 branches in Turkey, plans to expand in Europe

 www.zawya.com - Chairman of Kuwait Finance House in Turkey (KFH-Turkey) Mohammed Al-Omar announced that the bank has achieved TL 195 million net profits in 2011 with 22% increase in 2011. Total assets increased by 54%, and deposits grew by 8%, while revenues increased by 17% compared to last year. The general assembly approved 16% dividends for shareholders. He added that such outstanding results were achieved despite challenging global markets conditions, which cements the fact that the bank is on the right track to becoming one of the best banks in Turkey. (source)

CAPITAL MARKETS - Turkey links GCC interests with KFH Bank plans to issue more sukuk

new.kuwaittimes.net - ISTANBUL: Turkey is one of the few markets that has managed to avoid the negative impact of the global financial meltdown and debt crisis that plagued countries lying in close geographical proximity, asserted Mohammed Al-Omar, Kuwait Finance House (KFH) CEO and KFH-Turkey Chairman. He added that this was a result of Turkey’s experience in handling the crisis, and its success in creating a stable investment environment for local and foreign investors. (source)

BANKING - KFH Board approves new strategy

arabtimesonline.com - KUWAIT CITY, Jan 7: Kuwait Finance House’s Board of Directors has approved a new five-year strategy and transformation program designed to raise the bank’s performance to the next level. The strategy, which was developed in conjunction with Booz & Company, the international management consultancy firm, is centred on three strategic pillars of improving banking performance in Kuwait, streamlining the group’s investment portfolio and increasing coordination across its international banking subsidiaries.  (source)

ARTICLE - Ahmet Bicer - Private banking potential for Turkish participation banks

2011 Islamic Turkey Article Bicer Ifn
Source : http://www.tkbb.org.tr/download/Ahmet_Bicer_IFN_July.pdf

BANKING -Kuwait Finance House plans to continue its pivotal role in Turkish market, says Chairman

ameinfo.com - Chairman of Kuwait Finance House in Turkey Mohammed Al-Omar announced that the bank plans to continue its pivotal role in the Turkish market, in addition to cementing its strategy that is based on strengthening economic relations with neighboring countries, and with Kuwait and other GCC countries.

He added that the bank also plans to continue offering Islamic products and instruments that can broaden the horizon of Islamic banking in the Turkish economy, such as sukuk, murabaha, and ijarah.

Al-Omar went on to say during a forum held in Turkey that was attended by Turkish Minister of Finance and Minister of Economy, in addition to other economic, business and political figures, that KFH-Turkey has become a source of motivation for many Turkish banks and financial institutions. (source)

CAPITAL MARKETS - KFH unit’s second sukuk stirs delight in Turkish markets

As Kuveyt Turk Participation Bank (KTPB), which is majority owned by Kuwait Finance House (KFH), one of the largest Islamic banks in the world, ponders the successful closure last week of its $350 million 5-year Sukuk Al-Ijara, its second issuance to date, there is already talk of future forays into the global financial market to raise even longer term funding subject to the usual caveats of timing and market conditions. (source)

CAPITAL MARKETS - Turkey may become major sukuk source for Gulf investors

DUBAI, Nov 3 (Reuters) - Strong demand for a sukuk issued by Turkish bank Kuveyt Turk last month underlines how Turkey may become a major source of Islamic bonds for Gulf investors who are keen to diversify geographically.

The $350 million sukuk, issued at par and carrying a profit rate of 5.875 percent, was only the second sukuk issued from Turkey. But it attracted orders totalling over $550 million -- and Gulf investors accounted for nearly 70 percent of final subscribers, according to data released by the lead arrangers. (source)

BANKING - KD70.8m KFH net profits up to 3rd quarter 2011 - Kuveyt Turk passed 170 branches and new sukuk issued

ameinfo.com - uwait Finance House (KFH) Chairman Samir Al-Nafisi announced that KFH - Praise be to Allah - achieved Total Revenues of KD577m resulting in Total Profits of KD193.8m up to the 3rd quarter of 2011, of which shareholders' profits equaled KD70.8m. Earnings per share reached 26.6 fils. 

Assets increased to KD13.3bn with KD1.3bn increase or 10.4% over the same period last year. Deposits increased to KD8.7bn, with an increase of KD1.4bn or 18.4% over the same period last year. (source)

CAPITAL MARKETS - Kuveyt Turk issues $350 million Sukuk

cpifinancial.net  - Liquidity Management House (LMH) arranged and distributed an Ijara/Wakala Sukuk for Kuveyt Turk for an amount of $350 million over a tenor of five years

The Vice Chairman and CEO of Liquidity Management House (LMH), Emad Y. Al-Monayea, stated that LMH managed to arrange and distribute an Ijara/Wakala Sukuk for Kuveyt Turk for an amount of $350 million over a tenor of five years. The Sukuk issuance was rated BBB- by Fitch and will be listed on the London Stock Exchange. Al-Monayea stated that the issuance was concluded in a record time with a competitive rate during a difficult market period; all while adhering to the recent law issued by the Capital Market Authority in Turkey to organise the issuance of Sukuks. (source)

CAPITAL MARKETS - Kuveyt Türk opens Turkey up to Islamic bond market

It has been a groundbreaking week for Islamic finance in Turkey, with Thursday bringing both a $350m benchmark sukuk from Kuveyt Türk Participation Bank, and word that Asya Bank is looking to roadshow its own deal. (source)

FINANCE - Kuwait Finance House to finance international real estate in Jordan and Turkey

AMEINFO.COM - The Local Real Estate Department at Kuwait Finance House (KFH) will take part in the real estate and investment expo organized by Top Expo Group at the Fair Ground from Monday to Saturday. KFH presents its financing services for all kinds of real estate, such as residential, investment, commercial, and industrial for local real estate; in addition to financing real estate in most countries worldwide.(source)

ARTICLES - Forbidden fruit: Turkey’s tempting Islamic banking sector

IFN.COM - Cover Story - 29-Aug-2011 - Volume8.Issue34

Forbidden fruit: Turkey’s tempting Islamic banking sector economic powerhouse

Turkey has been one of the few economic success stories emerging from the recession, with the highest economic growth rate in the world (11%) in Q1 2011. Despite a dip in 2008 with GDP contracting 14.6%, the economy rapidly returned to growth and GDP grew by 8% in 2010 with a 5% expansion predicted for 2011. Turkish banks were largely unaffected by the global financial crisis, with limited exposure to toxic securities and high retail deposit levels providing a liquidity buffer. The regulator maintains firm control with a focus on preventing excessive credit growth and a ban on foreign currency retail lending, meaning that banks have experienced little funding stress.  Fitch Ratings recently changed Turkey’s ‘BB+’ sovereign rating outlook from stable to positive suggesting that a future upgrade could be on the cards, which will only enhance Turkey’s attractiveness to foreign investors. (source)

BANKING - KFH’s H1 results mirror Kuwaiti market conditions – Al Omar

Mohammed Al-Omar, CEO of Kuwait Finance House (KFH), told CNBC Arabiya exclusively today that KFH’s total assets reached KWD 12 billion, EPS 17.1 fils, while deposits grew by 14% which he saw as good results.

He indicated that the lender’s figures were impacted by return on financing cost.

By end of H1-11, KFH has made precautionary provisions, he noted, highlighting the solid performance of the stock. He also indicated that the lender’s figures mirrored the market’s conditions, given the fact that banks were awaiting for the development plan.

In addition, Al-Omar announced that KFH Turkey witnessed a33% growth, as the unit was financing operating projects and would likely issue Islamic bonds by the end of the year. The unit will generate profit because it operates in a healthy economy, Al-Omar said. (source)

BANKING - Hungary hungry for IF - Kuveyt Turk present

Hungary's first Islamic bank is on its way, says Istvan Kaknics-Ujhelyi, director of Hungary's Al-Gharnati Foundation and advisor to the mayor of the northern city of Eger. Hosszu Ferenc Ali Hasszan, a Hungarian currently undergoing Islamic banking training in Malaysia, told The Islamic Globe that Hungary is working towards opening its first fully functional Shari'ah compliant bank, called Magyar Iszlam Bank in the coming years.(source)

BANKING - Turkey draws closer to MENA

The Turkish economy has now re-aligned itself more closely to the regional markets in the GCC and MENA countries.

Whichever party wins the Turkish general election in June this year, one thing remains certain. Turkey's participation banking sector will continue its steady progress and, in the process, further consolidate the sector as the third major component in the Turkish financial system after the depository (conventional commercial deposit-taking) banks and the development and investment banks. Participation banking is the Turkish euphemism for interest-free profit-and-loss-sharing banking - in other words Islamic banking. Its importance is underlined by the fact that it has  flourished since its establishment in 1983 by a special decree introduced by the military regime of President Kenan Evren, and more recently it has undergone a successful transformation that has seen it become part of the mainstream banking industry following its licensing, regulation and supervision under the same provisions of the general 2007 Turkish Banking act (amended). (full story)

CAPITAL MARKETS - Turkish Islamic banks plan to sell bonds

Türkiye Finans, led by Yunus Nacar, plans to sell at least $300 million in Islamic bonds this year. 
 

Turkey’s Islamic banks are planning sukuk sales to take advantage of both the lowest borrowing costs in more than five years and the rising demand for the country’s securities.

Türkiye Finans, Kuveyt Türk and Albaraka Türk, all at least part-owned by Persian Gulf lenders, said they plan to offer Islamic bonds this year. (full story)

CAPITAL MARKETS - Kuwait’s KFH to issue sukuk worth $1bn - Kuveyt Turk set for $ 500 mln by the end of the year

KUWAIT CITY: Liquidity Management House, a unit of Kuwait Finance House (KFH) is in the process of issuing $1 billion in Islamic bonds, or sukuk, according to a newspaper report.

“The company is issuing Sukuk with a value up to $1 billion for three projects outside the local market ... with a share of 10 percent, which is equivalent to $100 million,” Chairman Emad Al-Monayea said in remarks published in a press report. (full story)