Islamic Banking Leadership Award

Evaluation

100% automatic, from the data and evidence you submit

Minimum score to win

70 / 100

Measurement period

The full financial year 2025 (or the latest financial year completed before nominations open); growth is measured against financial year 2024

Who can apply

• A licensed Islamic bank or an Islamic window with separate audited financial statements
• An independent Sharia supervisory board in place and approved by the regulator where required
• Operating for at least 3 years before the start of the measurement period
• Audited financial statements for the measurement period with an unqualified opinion from an independent external auditor
• No material regulatory or judicial sanction against the entity during the measurement period

Indicators and weights

1. Sharia non-compliant income

   Income the Sharia board ordered to be set aside or purified because of a Sharia breach during the year, as a percentage of total income, excluding late-payment charges given to charity under the contract; the value is accepted only if the year was covered by an internal Sharia audit and an external Sharia audit or review, otherwise 0.5 is entered (so weak oversight that finds no breaches is not rewarded)

   10%
   Show points and evidenceHide

   Points

   • ≥ 0.5 % 15
   • 0.2 – < 0.5 % 45
   • 0.05 – < 0.2 % 75
   • 0 – < 0.05 % 100

   Evidence

   Sharia supervisory board report and the purified income note in the financial statements

2. Sharia governance practices

   Number of the following seven practices in place: Sharia board of at least three members without conflicts of interest, internal Sharia audit unit reporting to the board or its committee, independent external Sharia audit, Sharia compliance function, adoption of AAOIFI or IFSB standards, published annual Sharia board report, published board resolutions or their summary

   20%
   Show points and evidenceHide

   Points

   • 6 – < 7 items 100
   • 5 – < 6 items 75
   • 3 – < 5 items 45
   • 0 – < 3 items 15

   Evidence

   Governance report, Sharia report and the charters of the units concerned

3. Return on equity versus the sector

   The entity’s return on average equity minus the average return on equity of Islamic banks (or of the whole banking sector if the regulator publishes no Islamic-bank average) in the same country for the same year as published by the regulator, in percentage points (neutralises inflation and market conditions)

   15%
   Show points and evidenceHide

   Points

   • ≥ 3 percentage points 100
   • 0 – < 3 percentage points 70
   • -3 – < 0 percentage points 40
   • -100 – < -3 percentage points 15

   Evidence

   Audited financial statements and the regulator’s statistical or stability report giving the sector average

4. Share of profit-and-loss-sharing modes

   Outstanding musharaka, mudaraba and diminishing musharaka financing as a percentage of the total financing portfolio at year end

   15%
   Show points and evidenceHide

   Points

   • 30 – < 100 % 100
   • 15 – < 30 % 80
   • 5 – < 15 % 50
   • 0 – < 5 % 20

   Evidence

   Financing by contract type note in the audited financial statements

5. Financing quality versus the sector

   The bank’s non-performing (stage 3) financing ratio divided by the country’s banking-sector average non-performing financing or loan ratio at year end; 0.5 means the bank’s ratio is half the sector average

   15%
   Show points and evidenceHide

   Points

   • ≥ 1 times the sector average 15
   • 0.8 – < 1 times the sector average 45
   • 0.5 – < 0.8 times the sector average 75
   • 0 – < 0.5 times the sector average 100

   Evidence

   Credit risk note in the audited financial statements and the financial stability report giving the sector average

6. Financing growth versus the sector

   The bank’s net financing growth minus the country’s banking-sector credit growth for the same year, in percentage points

   10%
   Show points and evidenceHide

   Points

   • ≥ 5 percentage points 100
   • 0 – < 5 percentage points 70
   • -5 – < 0 percentage points 40
   • -100 – < -5 percentage points 15

   Evidence

   Audited financial statements and the central bank statistical bulletin

7. Return to investment account holders

   Average profit distributed on one-year unrestricted investment accounts minus the country’s average one-year time deposit rate published by the central bank, in percentage points

   15%
   Show points and evidenceHide

   Points

   • ≥ 1 percentage points 100
   • 0 – < 1 percentage points 80
   • -1 – < 0 percentage points 50
   • -100 – < -1 percentage points 20

   Evidence

   Profit distribution to investment account holders note and the central bank interest rate bulletin

Each indicator gives 0 to 100 points; its share of the total is its weight. Ties are decided by the indicators listed first in the scorecard; payment or package never affects the score.

1. Done

   Nominations open

   26 October 2026 · 13:10

2. Upcoming

   Nominations close

   27 November 2026 · 01:10

3. Upcoming

   Judging starts

   27 November 2026 · 01:11

4. Upcoming

   Judging ends

   4 December 2026 · 13:00

5. Upcoming

   Results announced

   4 December 2026 · 13:10

Times are in Asia/Riyadh (UTC+03:00).