Doha: Shareholders of Islamic Bank of Britain (IBB) yesterday approved a £20m capital injection from founding shareholder Qatar International Islamic Bank (QIIB).
The additional capital will allow IBB to realise product development plans including the growth of its Islamic mortgage alternative, the Home Purchase Plan. IBB immediately released details of two new products to be launched as a result of the capital injection.
Coinciding with the holy month of Ramadan, IBB will today launch a 3.99 percent fixed rental rate product until January 2012 and a variable rental rate product at 4.99 percent.
Established in 2004, IBB is the UK's only stand-alone, Shariah compliant retail bank. With an established retail brand in the UK banking sector, the additional capital enables IBB to reinforce its position as the pioneer of Shariah compliant banking. In the face of challenging conditions for the British economy, the Bank has grown its deposits, assets and customers every year since its launch in September 2004. The Bank reported customer deposits of over £186m, customer financing at £46m and nearly 50,000 customers in its 2009 financial statements.
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 Ramadan."
Islamic Bank of Britain has pioneered Shariah 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, Savings Accounts and Personal Finance.
The Bank was also the first to introduce Shariah 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).
© The Peninsula 2010
