Al Amanah

Islamic
Investment
Bank
REPORTER: Quenie De la Cruz
Mirese Joyce Malaya
Al Amanah Islamic Investment
Bank

AAIIB is the only bank in the Philippines

authorized to offer Islamic banking. It is also
licensed to do both commercial and
investment banking services, similar to a
universal bank.
 History of
Amanah
Islamic Bank
1972
Presidential Decree No. 264 by then President
Ferdinand E. Marcos created the Amanah Islamic
Bank with an initial capitalization of 50 Million
pesos.
Intended to become a development bank, it
invested 75% of its total loanable funds on
providing, among others, reasonable medium and
long-term credit facilities for the people of the
Muslim-dominated provinces in Cotabato, South
Cotabato, Lanao del Sur, Lanao del Norte, Sulu,
Basilan, Zamboanga del Norte, Zamboanga del Sur
1974
Presidential Decree No. 542 retuned the
direction of the Bank to adopt the "no interest
principle" in Islamic banking and partnership
principles.
1990
The Bank became a Universal Bank through
enactment of Republic Act No. 6848, otherwise
known as the Charter of Al-Amanah Islamic
Investment Bank of the Philippines (AAIIBP). With an
authorized capital stock of P1 billion consisting of
Mid-1990
Three (3) of its branches, Cotabato, Marawi
and Jolo began accepting and transforming
ordinary deposits into Islamic deposits. The
other branches have been transacting both
conventional and Islamic banking products,
services
1990 to 2007and facilities .  

  
Al-Amanah Islamic Investment Bank of the
Philippines managed its operation with the
support of the Bureau of Treasury.
 
November 14, 2007
When DBP approved the acquisition of AAIIBP
and on July 16, 2008 it took over full control of
AIIBP’s operation
October 30, 2008
Development Bank of the Philippines (DBP)
obtained ownership of the 99.9% shareholdings
by acquiring the shares of the National
Government, SSS and GSIS and introduced its
current logo and tag name. “Amanah Islamic
Bank”
October 22, 2009
The Monetary Board approved the Bank's 5-
year Rehabilitation Plan, which focused on
four corporate strategies (4Rs).

 Recapitalization
 Restoration of Financial
Viability
 Reorganization
 Reforms
Institutionalization
November 2009
DBP, marking the partial completion of
recapitalization strategy, infused Php1.0
billion capital to AAIIBP.
Logo
The Bank Today
AL AMANAH Islamic Investment Bank of the
Philippines (AIB), is a universal bank
authorized to perform and provide Islamic
banking, financing and investment services
pursuant to R.A 6848, otherwise known as
the Charter of Al-Amanah Islamic Bank of the
Philippines of 1990.
 As an Islamic Bank, the Bank may also
engaged in issuance or assist the government
in Islamic investment participation by issuance
of investment participation certificates,
maquaradah or suksuk (Islamic bonds),
debentures, collaterals and/or the renewal or
refinancing of the same, with the approval of
the Monetary Board of the Central Bank of the
Philippines, to be used in its financing
operations for projects that will promote the
economic development primarily of the
 As a Universal Bank, the bank also offers
developmental and car loans to private and
public sector and other Islamic investment
assistance.
Today, AAIIBP has nine (9) operating banks
in the Cities of Cagayan de Oro, Cotabato,
Davao, Iligan, General Santos, Marawi,
Makati and Zamboanga and one in Jolo,
Sulo.
MISSION
To become a fully Islamic Bank and
afford Filipinos of the blessings and
benefits of Islamic banking, financing
and investment.
 To be competitive and significant in the
banking industry.
 To become a key-player in the global Islamic
banking and investment market. Participate in
all phases of development especially in the
ARMM and Mindanao.
To serve as arm of the Government in
addressing poverty alleviation especially in
Muslim Filipino communities across the country
by delivering them the goodwill and simplistic
Islamic banking and financing that are
responsive, sensitive and suitable to their way
of life.
To equip Muslim Filipinos with Islamic banking
and financial education that can help them
improve their economic condition and make
them a significant economic force of the nation.
VISION
To be the leading and choice Islamic financial
institution providing alternative banking services in
response to the emerging global Islamic markets and
to promote and accelerate the socio-economic
developments of the Islamic communities in the
Philippines by 2022.
CORE VALUES
Adherence to Shari’ah Principles:
Integrity, Competence and
CORPORATE SOCIAL
RESPONSIBILITYSTATEMENT
The Bank established a Waqf (donations and
endowments from donor community) and Zakat
(custodian of obligatory contributions of earning
Muslims intended to deliver charitable assistance
and also the default and penalty charges on Islamic
finances goes thereto), both are separate trust
funds administered by the Bank to deliver
humanitarian and charitable services in accordance
to Islamic tenets and Shari’ah jurisprudence.
 Humanitarian assistance shall come in the form
of financial assistance for livelihood programs that
shall address poverty alleviation. Charitable
assistance shall directly serve for the benefit of the
poorest sector in the society.
The Waqf shall also administer donation and
endowments earmarked for the purpose of building
and rebuilding of mosques, madrasah (schools),
hospital or hospital wards for the poor, homes for the
homeless children and the aged, scholarships for
advance learning beneficial to Muslim communities,
and other human welfare facilities.
OFFICERS AND EMPLOYEES
Board of Directors
The affairs and business of the Amanah Bank shall be
directed and its property managed and preserved unless
otherwise provided in this act, by a Board of Directors
consisting of nine (9) members duly elected as
hereinafter provided, who shall for each session of the
Board attended by them, be paid a per diem in such
amount as the Board of Directors may fix.
The President
The President of the Bank shall, among others, execute and
administer the policies, measures, orders and resolutions
approved by the Board of Directors and direct and supervise
the operation and administration of the Bank. Particularly, he
shall have the power and duty:
To make loans on commercial paper for periods of time not
to exceed four months in sums not exceeding fifty thousand
pesos to any one person, company, corporation or firm, but
he is required to submit a report on each such loan to the
Board of Directors at the next succeeding session.
 To make, with the advices and consent of the
Board of Directors, all contracts on behalf of the
said Bank and to enter into all necessary
obligations by this charter required or permitted.
To report weekly to the Board of Directors and
main facts concerning the operations of the bank
during the preceding week and to suggest
changes in the rates of discount, exchange, or of
policy which may to him seem best. 
Organizational Structure
Board of Directors
o Mr. Alex P. Bangcola- Chairmain and CEO
o Miguel C. Abaya- Director (Member of Audit and
Compliance Committee)
o Maria Lourdes A. Arcenas- Director (Member Human
Resource Committee)
o Rogelio V. Garcia- Director (Vice Chairman Executive
Committee and Risk Oversight Committee)
o Edgar N. Seronay- Director (Member of Executive
Committee)
Board of Directors
o Abdelnooh K. Hadjirul- Director (Vice Chairman of
Corporate Governance Committee and Member of
Executive Committee)
o Neogen M. Chaves- Director
o Sisinio S. Narisma- Director
o Abdul Hannan M. Tago- Director
o Saidah T. Pukunum- Director
Products and Services
The AAIIB offers deposit (savings, current
and general investment accounts) for both
Peso and Dollar denominated accounts and
the Maximum Deposit Insurance for each
Depositor P 500,000.
DBP’s full ownership of AAIIB is
expected to restore and enhance
depositor’s confidence.
Products and Services
– Islamic Deposit Products – Other Services
 Current Account  Collection Agreement
under \"Wadiah  Payroll Service
 Savings Account  Fund Transfer/OFW
under \"Wadiah\" Remittance
 Pilgrimage Savings Plan – Financing Products under
(PSP) the following Principles
– Conventional  Murabahah
 Current Account  Al-Bai Bithaman Ajil
 Savings Account  Ijarah
 Time/Special Savings
Islamic Deposit Products
Savings Account under “Wadiah”
Savings Accounts represent deposits which are evidenced by
a passbook and can be withdrawn upon presentation of a
properly accomplished withdrawal slip together with the
corresponding passbook.

Current Account under “Wadiah”

Current Accounts represent deposits which are repayable on
demand and without notice of intended withdrawal through
issuance of checks. This account is otherwise known as
demand or checking account.
Pilgrimage Savings Plan (PSP)
PSP is a type of savings deposit account under the
“Wadiah Yad Dhamanah” (guaranteed safe-custody)
principle available to customers to build up their savings
to finance future Muslim pilgrimages (Umrah or Hajj).

Islamic Financing Products

Murabaha Financing
Murabaha financing follows the principle under which the Bank
purchases the goods or assets required by the client and sells at
an agreed mark-up to the client. This principle is also known as
cost plus mark-up concept.
Al-Bai Bithaman Ajil Financing

Al-Bai Bithaman Ajil (BBA) represents financing for the

acquisition of a given asset through the concept of a Deferred
Payment Sale. Under this scheme, the Bank purchases the
asset concerned and subsequently sells the same to the
customer at an agreed price which comprises the actual cost of
the asset to the Bank and Bank’s the margin of profit and
allows the customer to settle the payment by installments within
the period and in the manner so agreed.
Al-Ijarah Muntahia Bittamleek
AL-Ijarah Muntahia Bittamleek (Leasing ending with
ownership) is a form of leasing where a property is
leased by the Bank (the lessor) to the client (the
lessee) in a way that at the end of an agreed lease
period, the lessee becomes the owner of the property.

Operation of the Bank

Based on the Islamic concept of banking
following the no-interest and partnership principles.
The bank’s authorized capital stock is P100 million,
divided into 1,000,000 shares with par value of P100
per share.
Stock Classification
1. Series A- P30 million equivalent to 300,000 common
shares to be subscribed by the government.
2. Series B- P20 million equivalent to 200,000 preferred
shares to be subscribed by the government, its agencies
or instrumentalities.
3. Series C- P30 million equivalent to 300,000 common
shares to be subscribed solely by the citizens of the
Philippines and domestic corporations and entities,
4. Series D- P20 million equivalent to 200,000 common
shares which shall be available for subscription of foreign
nationals, their corporations and/or associates.
Corporate Powers
1. To prescribe its by-laws;
2. To adopt, alter, and use a corporate seal;
3. To make contracts, to sue and be sued;
4. To accept savings and time deposits, and open current or
checking accounts;
5. To borrow money; to own real or personal property and to sell,
mortgage or otherwise dispose of the same;
6. To employ such officers and personnel, preferably from the
Muslim population in Mindanao and Palawan as may be
necessary to carry on its business;
7. To establish such branches and agencies in the dominantly
Muslim provinces in Mindanao and Palawan and such
correspondent officers in other areas as may be necessary
for the proper conduct of its business;
8. To grant loans for the establishment, acquisition,
development and expansion of any agricultural, commercial
and/or industrial enterprises, including public utilities, mining,
livestock and poultry and fishing, whether off-shore or inland;
9. To invest in equities of allied undertakings as pertinent laws
and the Central Bank shall authorize;
10.To carry on trust business in accordance with the provisions
of law governing trust corporations;
11. To issue bonds, debentures, securities, collaterals and/or the
renewal or refinancing of the same with the approval of the
Central Bank, to be used by the bank in its lending operations
for industrial and agricultural projects that will promote the
economic development of the region;
12. To exercise powers granted under this charter and such
incidental powers as may be necessary to carry on its
business, and to exercise further the general powers
mentioned in the Corporation Law and the General Banking
Act, as amended in so far as they are not inconsistent or
incompatible with the provisions of this Charter.
Loans and Investment Authorized
1. To purchase or discount promissory notes, drafts and bills of
exchange issued or drawn for agricultural, commercial or
industrial purposes, with securities required by the bank, or the
proceeds of which have been used or are to be used for such
purpose;
2. To grant loans on or to discount notes secured by harvested
and stored crops;
3. To grant loans to agriculturists, on installments, for standing
crops considered natural products of the Philippines such as
rice, copra, sugar, tobacco, corn, etc., not exceeding seventy
per cent (70%) of the estimated value of such crops;
4. To grant loans to the several provincial, city and municipal
governments and to any other branch or subdivision of the
Republic of the Philippines on promissory notes guaranteed by
the National Government, as known by the endorsement
thereon of the Secretary of Finance, approved by the President
of the Philippines or to purchase bonds lawfully issued by such
provincial, city and municipal governments and any other
branches or subdivision of the Government of the Philippines;
5. To grant loans to cooperative associations against the security
of acceptable assets of the cooperative association and/or the
individual members thereof
6. To grant or loans to small farmers, merchants and traders
against the security of the land without Torrens titles,
subject to existing laws, rules and regulations matter.
7. To grant loans to employees in the government service or in
private industry, and to acquire stocks in corporations and
industries, subject to existing laws, rules and regulations on
the matter.
8. To rediscount paper with the Bangko Sentral, PNB, or other
banks, including their branches or agencies.
9. To make advances or discount paper for agricultural,
manufacturing, industrial or commercial purposes.
THANK YOU !