Annual results for year ended 31st December 2012
Unprecedented demand delivers strong balance sheet growth at Islamic Bank of Britain.
Islamic Bank of Britain plc (IBB), (www.islamic-bank.com), the UK’s only wholly Sharia compliant retail bank, today announced its Annual Results for the Year Ended 31st December 2012.
Despite another year of macroeconomic weakness, IBB improved its operating performance as a result of the Transformation Programme initiated in 2011. The Bank also witnessed a significant increase in demand for its products. This resulted in IBB attaining the highest level of retail asset finance and deposit balances in its history. Highlights include:
- The Bank reported a loss of £6.99m for 2012, a £2.01m improvement on 2011 (loss of £9.00m).
- Operating expenses (excluding restructuring costs) reduced by £0.9m to £9.4m.
- Strong balance sheet growth, notably:
- Total customer financing increased by 86% to £129m (£69m in 2011) with;
- HPP (home) financing increasing by 92% to £117m (£61m in 2011);
- Retail deposits increased by 22% to £238m (£195.2m in 2011); and
- As a result of the internet enhancements delivered in the year, 14% of long term deposits raised in 2012 were sourced from the online channel (2011: nil).
- The Bank’s regulatory capital position remains strong with total regulatory capital expressed as a percentage of risk weighted assets at the year-end being 25.0% (2011: 28.1%) – well above the regulatory requirement.
In line with the Bank’s strategic goals IBB also realised the following achievements in 2012:
- Further enhancements to online banking services including the ability to launch new deposit products quickly to market and direct online account opening for new and existing customers;
- The launch of a number of new products in particular a 120 Day Notice Account, a Young Persons Notice Savings Account and a Buy To Let Purchase Plan rent only product;
- The introduction of a high availability systems ‘back-up’ solution providing considerably enhanced operational resilience and management of business continuity risk; and
- Payments administration enhancements improving transaction processing speed. With the launch of the new products outlined above, the Bank has extended its position as offering the widest range of Sharia compliant products in the UK retail market.
Khalifa Jassim Al Kuwari, Chairman of IBB said, “Over the past year, we have built on the foundations established last year. The Board, together with the Executive Management team and staff, continue to work towards our objectives of delivering high quality products and services to our customers and returns to our shareholders.”
Commenting on the Annual Results, Sultan Choudhury, Managing Director of IBB added, “IBB delivered a strong performance during 2012 and witnessed unprecedented demand for its products and services. This is testimony to the appeal the Bank has amongst consumers in the UK and GCC region. With competitive products and customer-focused service IBB has reaffirmed its position as the pioneer of Sharia compliant retail banking in the UK. These achievements could not have been made without the continued support of the Bank’s majority shareholder, Qatar International Islamic Bank (QIIB).”
IBB was formed in 2004 and has attracted over 50,000 customers. The Bank offers Sharia compliant retail financial products including current, savings and business banking accounts, Home Purchase Plans and Buy to Let Purchase Plans. IBB also works with carefully selected partners to offer Sharia compliant wealth management products and services.
About Islamic Bank of Britain
Islamic Bank of Britain plc (the Bank, IBB) has pioneered Sharia compliant retail banking in the UK and now offers the largest range of Sharia compliant retail financial products in the UK. These include Sharia compliant mortgage alternatives, the Home Purchase Plan (HPP) and Buy to Let Purchase Plan (BTLPP), 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 financial market.
The Bank is authorised and regulated by the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA) and is a member of Financial Services Compensation Scheme.
Sharia compliant banking operates without the use of interest and is founded on Islamic finance principles derived from trade, entrepreneurship and risk-sharing. IBB has a dedicated Sharia Compliance Officer (SCO) and a panel of respected Sharia Scholars, called the Sharia Supervisory Committee (SSC), which acts as an independent body to guarantee that IBB’s products and activities are Sharia compliant.
Whilst IBB offers products and services that are designed in accordance with Sharia principles, it is an inclusive, ethical organisation and welcomes customers of all faiths looking for a bank with a transparent, prudent and community-focused approach.
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