EMIRATES GLOBAL ISLAMIC BANK Live Case Study Presented By Muhammad Yasir Iqbal Khan Khaqan Ahmed Khan

I NTRODUCTION commenced operations in February 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

B ALANCE S HEET A NALYSIS Investments represent an increase of 21.14% during the year purchased fully paid shares of Gharibwal Cement and Huffaz Seamless Pipes investments in Sukkuk certificates and bonds 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

Issued right shares Liabilities against assets subject to finance lease increased by 47.29% 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 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% number of customers during the year increased to 13,502, showing an increase of a massive 272% as compared to previous year. Increase in Deposits of Financial Institutions: 390% shows the niche the bank has been able to carve for itself amongst the financial institutions. %age of Customers Deposits: 89.58% %age of Deposits of Financial Institutions 10.42%

FINANCING Increase in % 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 A NALYSIS STRENGHTS Elevated Ceiling for Housing Finance of Rs. 50 mn Benefit on Asset Transfer Facility Credit Committee Exploiting IT to the maximum Increasing Customer Base(increased by 272% to reach 13,502)

Cost Of Doing Business Under Control Growing Branch Network 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

W EAKNESSES Offerings not at par with Conventional Banks Lack of resources Limited Investment Opportunities Not fully developed Shariah Board Difficulty for customers to obtain financing Unable to cater to all customers

O PPORTUNITIES Customers dissatisfied with Islamic Windows of Conventioanl Banks Devout Muslims turning towards Islamic Banking Uncertainity created by failure of Capitalisim The occurring Islamic revolution in country Uncattered Market Niches

T HREATS Growing Bargaining Power of Customers Entrance of International Islamic Banks Customers attraction towards Meezan Bank as First Islamic Bank No substitute for various conventional banks products

R ECOMMENDATIONS 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