Page 7 - Agib Bank Ltd Annual Report and IFRS Financial statements 2020

CORPORATE BANKING

• Daily Cash collection
• Real Estate
• Investment Advisory Services
• Internet Banking

TRADE FINANCE

• Letters of Credit
• Bid Security, Performance Guarantees
• Advance payment Guarantees

TREASURY

• Foreign Currency Dealings
• Money Transfers – Ria, Western Union, Moneygram, Diamano, Small world, Lumoxchange
• Sukuk Al Salaam and Portfolio Issuance

MODES OF FINANCING

We provide our high valued customers with the opportunity to choose from our Islamic Modes of Financing
that would suit their needs such as,

Murabaha – This is a Contract of sale between the Bank and its client for the sale of goods at a Price Plus
and agreed Profit Margin for the bank.

Mudaraba (Profit Sharing) - This is a contract in which one party offer the funds(investor) and the other
(bank) manages the fund. The investor (Rabul Mal) is a dormant partner and the banks is the Manager
(Mudarib). It is in the form of equity financing. In this contract, the investing partners cannot take part in the
Management of the firm and profit sharing is determined and agreed at the start., but in the case of losses,
the entire capital may never be recovered by the financing partner and the entrepreneur gets nothing for his
labour.

Musharakah - A joint venture partnership agreement where both parties contribute financial assets for a
share of profits according to the pre agreed ratio. Capita Contribution can be the form of cash or both parties
have the right to manage the funds, but management is permissible by either party.

Ijarah/leasing - In this financing mode, the bank agrees to lease a customer an asset specified by the
customer for an agreed period against specified installments of lease rental.

Salam – This mode of financing is used specifically to finance the agricultural sector. This is where the seller
undertakes to supply specific goods to the bank at a future date in exchange of an advanced price paid by
the bank to the customer.

Annual Report and IFRS Financial Statements for the year ended 31 December 2020 6