IslamicFinance.de

Islamic Bank of Britain (IBB) narrowed its losses in 2012 a week after it raised £10 million ($15.5 million) from majority shareholder Qatar International Islamic Bank (QIIB). Last week, IBB raised £10 million by placing 1 billion shares with QIIB at a price of 1 penny each, raising the number of its outstanding ordinary shares to 4.5bn. In 2012, IBB posted a loss of £6.99m versus a loss of £9m a year earlier. Home financing business helped narrow the gap by nearly doubling to £117m in 2012 versus £61m a year earlier. The bank did not disclose personnel or administrative expenses, which in the past have represented the bulk of its costs. QIIB, which now owns 91 percent of IBB, has been in discussions since last June with Qatari lender Masraf Al Rayan to sell a controlling stake in the British bank.

Islamic Bank of Britain has raised £10m through a placing of 1,000 million ordinary shares at 1p each with its majority shareholder, Qatar International Islamic Bank.

More than 100 West Yorkshire Muslims attended an event in Bradford which focused on Islamic finance. The networking dinner was organised by the Professional Muslim Institute and sponsored by the Islamic Bank of Britain plc and Ummah Financial, two of West Yorkshire’s leading Islamic finance providers. Guest speaker was Imam Qari Asim, senior Imam at Leeds Makkah Mosque.

The Islamic Bank of Britain (IBB) launches a rent only plan, that means a variable rental rate product which is available to landlords of any faith with a deposit of 35 per cent and at a rental rate of 5.49 per cent. The plan offers financing between £30,000 and £500,000 on a minimum property value of £90,000. According to IBB head of sales and services Imran Pasha, there is a growing demand from landlords for Sharia compliant property finance.

The finalists for the inaugural British Muslim Awards were announced. The event will be held on Tuesday, 29th January 2013 in Manchester and honors achievements of Britain’s Muslim individuals, groups and business people. The Islamic Bank of Britain sponsors the event that will also raise money for Mosaic, a charity enterprise.

The deadline for Qatari lender Masraf Al Rayan to come up with an offer for Islamic Bank of Britain (IBB) concerning its takeover has been extended. It initially lapsed on December 10th and was now extended to January 7th. IBB is majority-owned by Qatar International Islamic Bank. The latter has been discussing selling a controlling stake in the British bank with Masraf Al Rayan since June 2012.
According to a statement by IBB, its lending growth for the first nine months of 2012 have been driven by two new home financing plans. Furthermore, the bank will search for ways to offer more products.

Islamic Bank of Britain (IBB) has brought diversity to its Sharia compliant Buy to Let Purchase Plan product palette by launching a rent only BTLPP. It is a variable rental rate product which will be available to landlords of any faith. The deposit will be 35% and the rental rate 5.49%. Some of the other features of the product are the lack of early payment charge for clearing the finance in full and An administration fee of 1%. In addition, additional acquisition payments can be made without penalty, subject to a minimum amount of £4,000.

Islamic Bank of Britain reported an increase of 63% in home financing and an increase of 43% in long-term savings deposits for the first three quarters of 2012. Key factors in stimulating the growth and demand were the launch and development of new savings products, the IBB Home Purchase Plan (HPP, the Sharia compliant mortgage alternative) and Buy to Let Purchase Plans, which were strongly supported by effective sales and marketing strategies. Currently, IBB is the leading provider of retail Islamic financial products in the UK and is searching for ways to increase the number of Islamic Banking products it offers to the market.

The deadline for final takeover offer of Islamic Bank of Britain (IBB) from Masraf Al Rayan has been prolonged to January 7. Islamic Bank of Britain that is owned by Qatar International Islamic Bank struggles to turn into profit since 2004. Management of the bank hopes that selling of the major stake to Masraf will help bank in renationalisation if its operations.

The deadline for discussions about the takeover of the Islamic Bank of Britain (IBB) by Masraf, the biggest Qatari bank, had been extended to January 7. IBB which is majority-owned by Qatar International Islamic Bank is trying to invigorate its business after the profit downturn in 2011 when it reported a loss of 8.9 million pounds. According to a separate statement released last week, IBB registered a 63% growth in home financing and a 43% up in long-term savings deposits in the first nine months of 2012. Management of the bank will continue focusing on secured financing and increasing of the loyalty of young savers.

Islamic Bank of Britain plc (IBB) registered an increase of 63% in home financing and a 43% up in long-term savings deposits for this year's first three quarters. The launch and development of new savings products have played the main role for the development of the growth and demand. Examples are the IBB Home Purchase Plan and Buy to Let Purchase Plans which were strongly supported by effective sales and marketing strategies.

Date: 15 November
Birmingham, West Midlands
£30,000 - £35,000 per annum

IBB is the UK's first FSA approved Islamic bank established Sept 2004. We are a stand-alone, Sharia compliant, retail bank in the UK and aim to provide a friendly, inclusive and personal service for all our customers. Based on the outskirts of Birmingham city centre, we are a small company of professionals with a promise to provide 'banking you can believe in'.

It is still discussed how to salvage the takeover of the Islamic Bank of Britain based in Birmingham. However, it is a fact that no offer for the business has been forthcoming. According to the IBB, Islamic bank Masraf Al Rayan appears to be a possible bidder following to collapse of takeover talks between the IBB and majority shareholder Qatar International Islamic Bank (QIIB). If MAR acquires IBB, QIIB will sell their 88.41% of the issued share capital of the Birmingham operation to MAR.

The Islamic Bank of Britain will bring about a savings account with a rarely high rate - 4%. The new account has a fixed rate for two years. The deposited money will be used to support Sharia-compliant and ethical trading companies.

The launch of Sharia compliant buy-to-let purchase plan has entered Islamic Bank of Britain into the buy-to-let mortgage market.
The IBB’s buy-to-let purchase plan can be accessed by landlords of any faith searching for ethical and Sharia compliant finance with a deposit of only 25%.
In order to mark the launch IBB have also announced a promotional procuration fee of 0.5% gross, payable on referrals that drawdown prior to March 31 2012.

Islamic Bank of Britain PLC has reported a loss attributable to owners of the company of 0.63 pence per share, for the year ended December 31, 2010 compared to a loss attributable to owners of the company of 1.8 pence per share, for the year ended December 31, 2009. The company has also provided its outlook for 2011.
Islamic Bank of Britain said that the market conditions look set to persist into 2011 and the directors and management will continue to identify opportunities to mitigate the adverse effects.

The Islamic Bank of Britain is being acquired by the Qatari International Islamic Bank in an unconditional cash offer.
Under the terms of the deal, shareholders in the Islamic Bank of Britain can receive one penny in cash for each share. The Offer represents a 70.4% discount to the closing price of 3.38p per share last night.
The directors of the Islamic Bank of Britain have said that the terms of the offer are fair and reasonable.

The Islamic Bank of Britain (IBB) opened its doors in 2004. Six years later in the summer of 2010, The Times newspaper described the venture as a flop. A couple of weeks after The Times article appeared, IBB had secured a £20 million capital injection from founding shareholder Qatar International Islamic Bank (QIIB), taking QIIB’s stake in the bank to over 80%.
However, some issues that still remain for IBB are:
- they have to come to grips is whether their position as a UK Islamic bank is tenable
- they will also have to deal with a more rigorous regulatory system.

Islamic Bank of Britain has joined forces with the Alliance of Mortgage Packagers and Distributors (AMPD) to offer the full range of its Sharia-compliant mortgages. IBB’s Home Purchase Plan (HPP) allows those consumers seeking a mortgage, home finance without the use of interest.
Islamic Bank of Britain’s Home Purchase Plan (HPP) will give AMPD’s members an alternative mortgage product which is transparent and easy to use, competitive enough to square up to conventional mortgages and has the leading edge of being an ethical product.

Islamic mortgages may be regarded as a niche market but they offer opportunities for brokers who work close to large Muslim populations, especially to those who understand the products and the sector.

As with all areas of lending finance for Islamic mortgages suffered in line with the market downturn. A lack of confidence, funding and a reassessment of risk with lower LTV criteria have all contributed to consolidation in what was a growing area of mortgage broking and lending.

Alburaq was a dedicated resource to brokers referring clients to Alburaq’s team in London. Islamic Bank of Britain offers training to ensure a full understanding of the market and there are competitive processing fees for packaged or introduced cases.

The important thing to remember is that this sector is growing through difficult times. Brokers will find this sector interesting and it will provide them with a loyal client base who will be keen to recommend knowledgeable and sensitive advisers to members of their community.