Islamic Bank looks to move on after £20m bail-out
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SHAREHOLDERS in Islamic Bank of Britain , the UK’s only stand-alone Sharia compliant retail bank, will be hoping for a chance in fortunes after backing a £20m bail-out from the bank’s founding shareholder.
The capital injection, courtesy of Qatar International Islamic Bank (QIIB), will allow Birmingham-based IBB to realise product development plans including the growth of its Islamic mortgage alternative, the Home Purchase Plan.
To coincide with the bail-out and the start of the Islamic holy month of Ramadhan, IBB has launched two new products – a 3.99% fixed rental rate product until January 2012 and a variable rental rate product at 4.99%.
IBB said it was hoping the injection would reinforce its position as the pioneer of Sharia compliant banking. It also said that in the face of the challenging economic conditions, it had successfully grown its deposits, assets and customers every year since its launch in September 2004.
In its 2009 financial statements, the bank reported customer deposits of more than £186m, customer financing at £46m and nearly 50,000 customers.
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.”
QIIB is listed on the Qatar Exchange and regulated by the Qatar Central Bank. It has assets in excess of £3bn and in 2009 reported annual reported profits of £95m.
European Central Bank, Frankfurt, Germany