Islamic Bank of Britain
|Traded as||LSE: IBB|
|Key people||Khalifa Jassim M.A. Al-Kuwari, Chairman
Sultan Choudhury, Interim Managing Director
|Revenue||GBP6.99 million (2012)|
|Net income||GBP2.4 million (2012)|
|Parent||Masraf Al Rayan|
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 branches in London, Birmingham, Manchester and Leicester and agencies in Dewsbury, Luton and Tooting. It is the first British bank claiming to operate, in its entirety, according to Islamic principles. Both Muslims and non-Muslims are also allowed to hold accounts with the bank.
The bank states that it runs on four values: 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. The bank also has a Sharia Supervisory Committee to ensure that its products are compliant with Islamic teachings.
As of 2010 the Islamic Bank of Britain serviced 50,531 customers.
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.
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, and subsequently led to the Islamic Bank of Britain available to the public.
Like all financial institutions, IBB has been adversely affected firstly by the global financial crisis of 2007-2008 and subsequently by on-going weak macroeconomic conditions. Despite, this IBB has continued to grow and in 2012 attained the highest level of retail asset finance and deposit balances in its history.
The acquisition of Islamic Bank of Britain by Masraf Al Rayan
- 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
- "First Islamic bank to open in UK". BBC. 2004-08-09. Retrieved 2007-09-21.
- "The Best Savings Accounts You've Never Heard Of". Yahoo! Finance. Retrieved 2009-12-02.
- "Ethical UK bank". Islamic Bank of Britain. Archived from the original on 19 August 2007. Retrieved 2007-09-22.
- "IBB Annual Report 2010" (pdf). Islamic Bank of Britain. 2010-12-31. Archived from the original on 3 May 2011. Retrieved 2011-05-03.
- "Regulation and Islamic finance". Financial Services Authority. 2006-06-13. Retrieved 2007-09-22.