Islamic Bank of Britain PLC
Annual results for year ended 31 December 2006
Operational Summary
- 120% increase in customer numbers compared to the December 2005 position ( 30,814 at the end of 2006, compared to 14,023 at the end of 2005)
- Number of customer accounts more than doubled to 51,032 from 25,403
- Customer deposits grew by 76% to £83.9 million from £47.7 million
- Two new branches opened in 2006, total branch numbers currently 8 across the UK
- Distribution capability strengthened with launch of internet banking service in September 2006
- Further strengthened business banking proposition with introduction of commercial property finance
- Move to MasterCard’s Maestro platform to give customers access to global banking network
- Relationship management team strengthened to target private clients, SMEs and charities
- Introduction of Home Finance product in June 2006, in conjunction with other partners in Islamic Banking
Financial Summary
- Income receivable from Murabaha and Wakala transactions advanced to £3.9 million (year end to 31 December 2005 £2.8 million)
- Income receivable from consumer finance £640,257 (year end to 31 December 2005: £201,539)
- Net income from Islamic financing transactions of £2.8 million (year end to 31 December 2005: £2.2 million)
- Operating costs up to £11.4 million from £8.7 million reflecting investment in operational infrastructure, increase in distribution capability (Branch and Internet Banking) broadly in line with plans; increase in the number of staff and other business volume related costs.
- Loss on ordinary activities before tax of £8.8 million (year end to 31 December 2005: £6.4 million)
- Loss per ordinary share of 2.1p (year end to 31 December 2005:1.5p)
Mohsen Moustafa, Chairman, commented: “I am pleased to announce our results for the year ended 31 December 2006 which show our continued growth in terms of products and business development. We have seen a strong upward trend in customer numbers, account volumes, deposits, and financing activities during the year. We are very optimistic about the prospect for Islamic banking in the UK and Europe. “During the year, we have focused leveraging previous achievements. We continued to develop our product portfolio and now have a comprehensive range of products offering a real alternative to conventional banking.
Additionally, we continued to develop our delivery channel capabilities with the opening of two new branches and the launch of internet banking. “It is especially pleasing to have our progress recognised by key leaders in the banking industry. In June 2006 the Chairman of the FSA, in the presence of the Chancellor of the Exchequer, cited Islamic Bank of Britain as a positive initiative which the UK was proud to support. We were also pleased to be awarded ‘Best Islamic Bank of Europe’ for the second successive year. In 2007, we will continue to progress our business development plan. Our main focus moving forward will be to build on our customer base and focus on strengthening our service delivery channels.”
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Issued on behalf of Islamic Bank of Britain by McCann Erickson PR. McCann House, Highlands Road, Shirley, Solihull, B90 4WE. Tel 0121 713 3500
For further information please contact Dawn Walker on 0121 713 3790, dawn.walker@europe.mccan.com or Caroline Hosie on 0121 713 3829, caroline.hosie@europe.mccann.com or Alison Love on 0121 713 3782, alison.love@europe.mccann.com