Islamic Bank of Britain set for £20million capital boost
Qatar International Islamic Bank commits £20million capital injection to IBB
Islamic Bank of Britain (IBB or the “Bank”, www.islamic-bank.com) has secured a £20million capital injection from founding shareholder Qatar International Islamic Bank (QIIB, www.qiib.com.qa) which will take QIIB’s stake in the bank to over 80%. The investment is subject to shareholder and regulatory approvals.
The additional capital will allow IBB to leverage its established retail brand in the Islamic finance sector to increase sales of key products, such as the recently launched Islamic alternative to mortgages the IBB Home Purchase Plan.
IBB was the first Sharia compliant retail bank to be licensed in the UK and today is the only Sharia compliant stand alone retail bank currently permitted to operate in Europe. 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.
QIIB is listed on the Qatar Exchange and regulated by the Qatar Central Bank. QIIB has assets in excess of £3billion* and annual reported profits of £95million* in 2009. Founded in 1991, QIIB is well-placed to provide a full array of retail and corporate banking services.
The UK has led the Western world in the promotion of Sharia compliant financial services in recent times and this investment in IBB reinforces the UK position as the leader in the development of Islamic financial services globally. This investment continues the trend of recent Qatari investments in UK companies and real estate and is a further vote of confidence in the growing UK Islamic Banking sector.
“This is very good news for IBB’s shareholders, staff and customers as well as for the Islamic Banking sector in the UK which is well positioned for continued growth.”
Gerry Deegan – Managing Director
Gerry Deegan, Managing Director at IBB commented “QIIB was instrumental in establishing IBB as the first Islamic bank in the West and this capital injection demonstrates its continuing commitment to IBB. This is very good news for IBB’s shareholders, staff and customers as well as for the Islamic Banking sector in the UK. We look forward to working with QIIB to jointly develop and promote new markets, products and services”.
Sultan Choudhury, Commercial Director commented “This investment in IBB allows us to grow our business and remain the pioneer in providing innovative Islamic finance products to Retail customers in the UK and beyond. Our customers will be reassured that one of our founding shareholders has continued to commit to us for the long term and work with IBB to achieve its exciting objectives“.
*Total assets and net profits to shareholders taken from 2009 financial statements and exchange rate of 5.4 Qatari Riyals to £1 sterling (Source: www.xe.com rates as of 30th June 2010).
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