UK Islamic mortgages set for growth after Qatari Investment
Shareholders of Islamic Bank of Britain (IBB or the “Bank”, www.islamic-bank.com) yesterday approved a £20million capital injection from founding shareholder Qatar International Islamic Bank (QIIB, www.qiib.com.qa).
The additional capital will allow IBB to realise product development plans including the growth of its Islamic mortgage alternative, the Home Purchase Plan. IBB immediately released details of two new products to be launched as a result of the capital injection.
Coinciding with the Islamic holy month of Ramadhan, IBB will today launch a 3.99% fixed rental* rate product until January 2012 and a variable rental* rate product at 4.99%.
Established in 2004, IBB is the UK’s only stand-alone, Sharia compliant retail bank. With an established retail brand in the UK banking sector, the additional capital enables IBB to reinforce its position as the pioneer of Sharia compliant banking. In the face of challenging conditions for the British economy, the Bank has grown its deposits, assets and customers every year since its launch in September 2004. The Bank reported customer deposits of over £186million, customer financing at £46million and nearly 50,000 customers in its 2009 financial statements.
Commenting on the investment, Sultan Choudhury, Commercial Director, IBB, said, “IBB already offers the largest range of Sharia compliant products and services in the UK. With a fresh injection of capital we are well placed to grow the business through our Home Purchase Plan products. The products will offer peace of mind for customers, both financially and spiritually, which is especially important in the holy month of Ramadhan.”
* See notes for Rental explanation
About Islamic Bank of Britain
Islamic Bank of Britain plc (Bank) has pioneered Sharia compliant retail banking in the UK and has launched a wide range of products, including the Home Purchase Plan (the halal mortgage alternative) Current Accounts and Savings Accounts. The Bank was also the first to introduce Sharia compliant business banking to the UK, and now offers a wide range of institutional and business banking products and services, including Commercial Property Finance.
Several of the Bank’s products remain unique in the UK retail market.
The Bank is authorised and regulated by the Financial Services Authority and is a member of Financial Services Compensation Scheme. All products offered by the Bank are fully approved by the Bank’s Sharia Supervisory Committee (SSC).
Sharia compliant banking operates without the use of interest. The products that are offered are structured in a different way to those provided by conventional banks
Whilst the Bank offers products and services that are designed in accordance with Sharia principles, it is an inclusive Bank and welcomes customers of all faiths.
Notes to editors:
Interviews with Islamic Bank of Britain are available on request. The bank should only be referred to as “Islamic Bank of Britain”. If abbreviated please use “IBB”.
Issued by Islamic Bank of Britain Plc, Edgbaston House, 3 Duchess Place, Birmingham B16 8NH