Friday August 22, 2008
KUALA LUMPUR: AmInvestment Bank Group aims to achieve RM1mil net profit for its newly launched Islamic stockbroking (ISB) unit in the first year of operations.
Operations director Shaharuddin Hassan said RM1mil in bottomline was achievable and translated into RM600mil trading volume.
AmInvestment is the second bank to set up an ISB unit in the country after Bank Islam Malaysia Bhd.
According to retail broking director Lee Yew Kin, two or three local investment banks will soon launch their ISB units.
AmInvestment Bank Group launched of its first Islamic Structure Deposit, Active Commodities Islamic Negotiable Instruments of Deposit (NID-i).
Meant for Muslim and non-Muslim customers, ISB offers syariah-compliant products, activities, business and operations.
Services offered carry no elements of riba’ (interest) such as contra service charge, interest charges and interest income.
“We are now using the strength of the infrastructure in our conventional stockbroking to provide this service,” Shaharuddin said, adding that the new venture cost about RM2mil.
The bank will consider setting up a full-fledged centre when the demand has picked up.
On the possibility of introducing ISB beyond Malaysia with a partner, Shaharuddin said the bank’s intention was to first build a track record in the local market.
He said about 800 counters listed on Bursa Malaysia were syariah-compliant and this translated into a huge potential for the ISB market.
He said Islamic stockbroking now contributed less than 1% of the total trading volume.
On the outlook of the local stock market, he said it would be choppy in the next few months due to the slowdown in the global market and political instability in the country.
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