EMIRATES GLOBAL ISLAMIC BANK
Live Case Study
Presented By
Muhammad Yasir Iqbal
Khan Khaqan Ahmed Khan
INTRODUCTION
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commenced operations in February 2007.
sponsored by leading investors from the United
Arab Emirates and Saudi Arabia
sponsoring shareholder of the bank, Emirates
Investments Group LLC
has 41 branches in 24 cities
BALANCE SHEET ANALYSIS
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Investments represent an increase of 21.14%
during the year 2008.
purchased fully paid shares of Gharibwal Cement
and Huffaz Seamless Pipes
 investments in Sukkuk certificates and bonds
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Operating fixed assets increased by 69.73%
under the capital work in progress the bank
advanced amounts against purchase of property.
 under the property and equipment head, the bank
acquired land, vehicles, office equipment etc
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Issued right shares
Liabilities against assets subject to finance lease
increased by 47.29%
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entered into various finance lease agreements with respect
to vehicles.
Posted a loss this year: has been operational for two
years and grown, so the bank’s performance can be
considered satisfactory.
Balance Sheet represents growth and a very strong
position
DEPOSITS
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Under the Fixed Deposits account, the bank basically
does mudarabah. Musharakah is done only in the
case of big clients, who want to invest in TDR,
property etc.
Increase in Total Deposits: 139%
Increase in Customers Deposits: 125.8%
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Increase in Deposits of Financial Institutions: 390%
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number of customers during the year increased to 13,502,
showing an increase of a massive 272% as compared to
previous year.
shows the niche the bank has been able to carve for itself
amongst the financial institutions.
%age of Customers Deposits:
%age of Deposits of Financial Institutions
89.58%
10.42%
FINANCING
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Increase in 2008 280%
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bank invested heavily in various arenas
Bank is clearly financing Murabaha the most(47.73%)
Diminishing Musharakah(24.77%) comes second in the
heads being financed by the bank
Auto Ijarah is also one of the successful product of the
bank and is the third highest financing contributor of
the banks financing.
Travel Finance(0.02%) is a relatively new product
offered by the bank, which is not offered by all the
Islamic banks.
SWOT ANALYSIS
STRENGHTS
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Elevated Ceiling for Housing Finance of Rs. 50 mn
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Benefit on Asset Transfer Facility
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Credit Committee
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Exploiting IT to the maximum
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Increasing Customer Base(increased by 272% to reach
13,502)
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Cost Of Doing Business Under Control
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Growing Branch Network
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Rigorous Training Programme(71 training sessions,
1279 participants trained)
Good Credit Rating: “A-” for long term entity and “A2”
for short term
First Bank to use Oracle-Siebel
WEAKNESSES
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Offerings not at par with Conventional Banks
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Lack of resources
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Limited Investment Opportunities
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Not fully developed Shariah Board
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Difficulty for customers to obtain financing
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Unable to cater to all customers
OPPORTUNITIES
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Customers dissatisfied with Islamic Windows of
Conventioanl Banks
Devout Muslims turning towards Islamic
Banking
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Uncertainity created by failure of Capitalisim
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The occurring Islamic revolution in country
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Uncattered Market Niches
THREATS
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Growing Bargaining Power of Customers
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Entrance of International Islamic Banks
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Customers attraction towards Meezan Bank as
First Islamic Bank
No substitute for various conventional banks
products
No substitute for various conventional banks
products
RECOMMENDATIONS
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Increase it’s portfolio of products and services
Need to create awareness amongst the masses
regarding Islamic banking
Strong need for aggressive marketing to be done
Target specific market niches just like Jodia
Bazaar