IslamicFinance.de

Keith Leach, chief commercial officer (CCO), Al Rayan Bank, has an answer to the question if the new UK stamp duty charges announced in the autumn budget have a negative impact on foreign investment into property. His answer showed that potential investors are looking at the big, global picture. The tax changes — what might be on the horizon — wasn’t figuring in their thought processes. What was in their thoughts was the political and economic instability in the region, he explained. With regard to the impact of the 3% hike across all bands of stamp duty on buy-to-let landlords in the UK, Leach said it could lead to landlords faced with higher charges raising rents, or abandoning the buy-to-let market with a consequent reduction in availability of rental properties.

With Islamic finance entering London’s financial market and billions of dollars of investment in the UK and global real estate coming from Gulf Cooperation Council countries and other Muslim jurisdictions, the UK government was one of the first in the West that started propelling initiatives on Islamic financing vehicles for property purchases as early as in 2013. Meanwhile, Islamic financing facilities have become so popular for real estate transactions in the UK undertaken by Arab investors that the next International Real Estate Finance Summit, the premier real estate event in the UK scheduled to take place on December 1 and 2, 2015, in London, will entirely focus on the opportunities Shariah-compliant finance vehicles entail for property financing.

Al Rayan Bank is renewing its commitment to Birmingham as it gets set to relocate to a new head office in Edgbaston. The bank has purchased offices in Calthorpe Road and will move 100 of its employees from its current leased offices later this month. In February 2014, Al Rayan Bank was acquired by Masraf Al Rayan, the second largest Islamic bank in Qatar by market value. A rebrand followed before the bank posted its financial performance. In 2014, the bank’s operating income increased by 168%, customer financing increased by 86% and retail deposits increased by 59%. The bank also transformed a £5.5m loss in 2013 to an after tax profit of £1.2m.

Al Rayan Bank has boosted its staff in order to expand its mortgage business through mortgage advisers. It comes as the bank appointed Saalik Haleem as intermediary specialist. Mr Haleem, who is based at the bank’s operational headquarters, has been tasked with boosting the 13 per cent intermediary share of the bank’s mortgage business and creating new relationships with mortgage advisers across the UK. He has worked in Islamic finance for several years, specialising in the areas of advisory and Islamic investments, specifically Sharia-complaint Oeic/unit trusts.

Matthew Glover, head of IT and change delivery at Al Rayan Bank, says its use of cloud amounts to a competitive advantage against big banks, and its customer base of 60,000 gives it an edge against challenger banks which are similarly unburdened by legacy. Being an Islamic bank makes Al Rayan’s business different, too. Glover is not himself Muslim, and neither are many of its customers, he says. He heads a team of 14 IT and business professionals. The IT estate is a mix of on-premise and cloud. Apart from the core banking system, which is a Misys platform running on an IBM AS/400, Salesforce is the most important part of the bank’s technology landscape.

Al Rayan Bank PLC, formerly known as Islamic Bank of Britain, has officially opened its new private banking branch in Knightsbridge, London. The flagship branch adds to Al Rayan Bank’s existing network of five branches and three agencies throughout the country. It will provide high net worth individuals and Gulf Cooperation Council (GCC) clients with private banking services including real estate finance, day-to-day banking services and bespoke investment opportunities. In 2014 the bank’s operating income increased by 168 per cent, customer financing increased by 86 per cent and retail deposits increased by 59 per cent. The bank also transformed a £5.5 million loss in 2013 to an after tax profit of £1.2 million, the first time in its eleven year history that it has posted a profit.

Al Rayan Bank, formerly known as Islamic Bank of Britain (IBB), yesterday announced its strongest financial performance to date, resulting in the Bank more than doubling its operating income and posting its first profit since its inception in 2004. The bank’s operating income increased 168 percent to £11.8m in 2014 from£4.4m in 2013. The bank saw 86 percent increase in total customer financing, to £450.3m. Retail deposits increased 59 percent to £509.8m and while wholesale deposits increased 53 percent to £31.7m. Increasing consumer confidence, the continued strength of the housing market and opportunities to provide property finance to the commercial sector as well as to investors in the Gulf has enabled Al Rayan Bank to post its best results to date.

Al Rayan Bank PLC, formerly known as Islamic Bank of Britain (IBB), has announced the appointment of Tim Sinclair as senior head of marketing and retail sales at its Birmingham office. Sinclair has played a role in the realignment of the bank’s sales channels, towards a more direct model. This has been achieved by developing the bank’s online capabilities, resulting in a 439% growth in direct sales between 2011 and 2014. Sinclair has also championed several research projects, which have helped Al Rayan Bank to develop a clearer understanding of the British Muslim consumer and business marketplace, a previously under researched area.

The British Muslim Awards sponsored by the Al Rayan Bank, formerly known as Islamic Bank of Britain (IBB), aim to recognise a wide range of achievements which cover various aspects of society including business, charity, sport, arts and culture and much more. This year the event took place at the Chateau Impney Hotel, Worcestershire on Tuesday, January 27. Several nominees for each of the categories had been announced prior to the event. Categories include Muslim in the Community, Arts & Cultural Awareness, Young Achiever of the Year, Charity of the Year, Responsible Media of the Year, Religious Advocate of the Year, Muslim Woman of the Year, Best at Sport, among others.

Shareholders of the Birmingham-based Islamic Bank of Britain have given their approval to change its name to Al Rayan Bank. As a result of the rebranding, the bank has introduced a new Al Rayan Bank logo and brand identity, which are being implemented across its website, literature and branches. Al Rayan Bank’s activities will continue to be monitored by an independent Sharia supervisory committee and a dedicated compliance officer. It will continue to operate as a UK regulated bank and customers’ deposits will remain protected by the Financial Services Compensation Scheme.

Islamic Bank of Britain (IBB) plans to change its name to Al Rayan Bank PLC, subject to formal shareholder approval. The change will be completed in December 2014. The rebrand follows IBB's acquisition, earlier in the year, by Qatar-based Masraf Al Rayan (MAR). Rebranding activity will involve the introduction of a new Al Rayan Bank logo and brand identity. It will continue to operate as a UK regulated bank, and customers' deposits will remain protected by the Financial Services Compensation Scheme. With an increased focus on corporate and real estate finance, Al Rayan Bank will develop its presence in London. Its retail banking and operational head quarters will remain in Birmingham.

The synergy between the Islamic Bank of Britain (IBB) and its parent company Masraf Al Rayan will soon be reflected in the British bank’s name. Customers were informed last week that the new name for IBB to be adopted towards the end of the year will be Al Rayan Bank. Sultan Choudhury, chief executive officer of IBB, emphasised in the letter he sent out last week informing customers about the name change that the bank remains British regulated with a British board. The bank has invested heavily in its internet banking capability which has opened up its services to a much broader customer base. Its latest data also shows a big surge in non-Muslim customers.