Interim Results 7 Sept 2006

Islamic Bank of Britain Plc

07 September 2006 

                           ISLAMIC BANK OF BRITAIN PLC

             Interim results for the six month period to 30 June 2006

 Operational Summary 

  • 67% increase in customer numbers compared to the December 2005 position

    (customer numbers have quadrupled in the last 12 months from 5,962 in June

    2005 to 23,459 in June 2006)

  • Customer deposits grew by 47% to £70.1 million

  • Gross customer financing rose by 58% to £7.1 million

  • Expected opening for East Ham branch by the end of 2006

  • Total branch numbers currently 7 across the UK

  • Imminent launch of internet banking service

  • Further strengthened business banking proposition with introduction of

    commercial property finance in July 2006

  • Introduction of Home Finance product in June 2006 

Financial Summary 

  • Income receivable from Murabaha and Wakala transactions increase to £1.7

    million (six months to 30 June 2005 £1.2 million)

  • Income receivable from consumer finance £281,825 (six months to 30 June

    2005 £17,351)

  • Net income from Islamic financing transactions of £1.2 million (six months

    to 30 June 2005 £1.0 million)

  • Operating costs up to £5.4 million from £3.7 million reflecting investment

    in increased staff costs due to the opening of four new branches, marketing

    and operational infrastructure

  • Loss on ordinary activities before tax of £4.2 million (six months to 31

    December 2005 £3.7 million)

  • Loss per ordinary share 1.0p (six months to 30 December 2005 0.9p)

Abdul Rahman Abdul Malik, Chairman, commented:  "I am pleased to announce our

interim results to 30 June 2006, in particular the very positive increase in our

customer numbers, deposits and financing which demonstrate that Islamic Bank of

Britain is offering a much needed service to Muslims in the UK and many in the

wider community.

"During the first half of the year, we have focused on development of our

product portfolio with the launch of our Home Finance product and commercial

property finance.  We have also strengthened our delivery channel capabilities

with the opening of our Manchester branch and the imminent launch of our

internet banking facility, which will be vital in attracting younger customers.

We remain on target to reach our goal of 13 strategically located branches in

the UK.

"Perhaps most importantly, the legislative changes in the 2006 Finance Bill,

which remove a number of tax hurdles that have restricted the development of

certain Islamic financing products, will enable us to promote a much wider range

of financing services to the personal and small business customer."

                                   -Ends-

Issued on behalf of Islamic Bank of Britain by McCann Erickson PR. McCann House,

         Highlands Road, Shirley, Solihull, B90 4WE.  Tel 0121 713 3500

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