Islamic Bank of Britain
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| Type | Public |
|---|---|
| Traded as | LSE: IBB |
| Industry | Financial services |
| Founded | 2004 |
| Headquarters | Birmingham, UK |
| Key people | Mohsen Moustafa, Chairman Gerry Deegan, Managing Director Sultan Choudhury, Commercial Director |
| Products | Banking |
| Revenue |  GBP 8.83 million (2006) |
| Net income |  GBP 2.85 million (2006) |
| Parent | Qatar International Islamic Bank |
| Website | www.islamic-bank.com |
The Islamic Bank of Britain plc (LSE: IBB) is a commercial bank in the United Kingdom, established in August 2004 to offer Sharia compliant financial service products to British Muslims. The bank has seven branches in London, Birmingham, Manchester and Leicester. It is the first British bank claiming to operate, in its entirety, according to Islamic principles,[1] although non-Muslims are also allowed to hold accounts.[2]
The bank states that it runs on four values:[3] faith, value, convenience, trust. Faith is an important factor for the bank, and accordingly branches close on Friday afternoons to allow the staff to attend Jummah (Friday) prayers.[4] The bank also has a Sharia Supervisory Committee to ensure that its products are compliant with Islamic teachings.[3]
During four years of its operation it has made a good impact in Islamic Shariah Market. By the end of 2006, its customers totalled 30,814, increasing by 120% from the previous year.[5] As of 2010 the Islamic Bank of Britain serviced 50,531 customers.[6]
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[edit] History
The Islamic Bank of Britain was formed by a group of investors from the Middle East to take advantage of the growing market for Sharia compliant financial services in the UK. In July 2002, consultants and advisors were employed to confirm if such type of bank was needed and if it would be accepted by the Financial Services Authority, FSA.[7]
Potential investors were invited, mainly from the Persian Gulf, who put together a private placement document which allowed the company to raise £14 million in start up capital by early 2003. In the same period, its first Managing Director, Michael Hanlon was recruited. Later that year, a draft business plan was proposed and formal application to the FSA was submitted.
By August 2004, the FSA granted authorisation of the bank,[8] and subsequently led to the Islamic Bank of Britain available to the public.
[edit] Declining prospects
The bank, however, has not been a commercial success, making continuous losses since its launch. In 2010, with the rate of losses increasing, the bank accepted a capital injection of GBP20 million from Qatar International Islamic Bank at 1p per share - a 96% discount to the 2004 initial listing price of 25p per share. Following a further substantial loss in 2010, QIIB made a recommended offer of 1p per share in March 2011 to buy out the 12% minority.
[edit] External links
- www.islamic-bank.com - Islamic Bank of Britain
- Q & A Islamic Finance(BBC) -
- Halal Mortgages TV ad - IBB's recent TV advertisement for Halal Mortgages
- Islamic banks outstrip high street rates
[edit] References
- ^ "First Islamic bank to open in UK". BBC. 2004-08-09. http://news.bbc.co.uk/1/hi/business/3547374.stm. Retrieved 2007-09-21.
- ^ "The Best Savings Accounts You've Never Heard Of". Yahoo! Finance. http://uk.biz.yahoo.com/02122009/389/best-savings-account-ve-heard.html. Retrieved 2009-12-02.
- ^ a b "Ethical UK bank". Islamic Bank of Britain. Archived from the original on 19 August 2007. http://web.archive.org/web/20070819081509/http://www.islamic-bank.com/islamicbanklive/VisionAndValues/1/Home/1/Home.jsp. Retrieved 2007-09-22.
- ^ [1]
- ^ "IBB Annual Report 2006" (pdf). Islamic Bank of Britain. 2006-12-31. Archived from the original on 24 October 2007. http://web.archive.org/web/20071024072859/http://www.islamic-bank.com/imagesupload/IBBAnnualReport2006.pdf. Retrieved 2007-09-21.
- ^ "IBB Annual Report 2010" (pdf). Islamic Bank of Britain. 2010-12-31. Archived from the original on 3 May 2011. http://www.islamic-bank.com/GetAsset.aspx?id=fAA1ADUANAB8AHwAVAByAHUAZQB8AHwAMAB8AA2. Retrieved 2011-05-03.
- ^ Prospectus
- ^ "Regulation and Islamic finance". Financial Services Authority. 2006-06-13. http://www.fsa.gov.uk/pages/Library/Communication/Speeches/2006/0613_cm.shtml. Retrieved 2007-09-22.
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