Annual Report and Financial Statements 31 December 2007
Islamic Bank of Britain Plc
17 March 2008
Registered number 4483430
Statement of changes in equity
Cash flow statement
Notes to the financial statements
Independent auditors' review report
I am pleased to present the Annual Report for Islamic Bank of Britain PLC for 2007, a year of significant achievements setting the bank on course to attain its strategic objectives. During the year we made strong progress in all areas, including deposit growth, customer acquisition and launching new initiatives.
IBB has an established status as the Pioneer of Islamic banking in the UK, and remains the only stand alone full fledged Sharia'a compliant retail bank in the UK. IBB's vision is to strengthen its core competencies and maintain its leadership position in the Sharia'a compliant banking industry in the UK. In addition the bank plans to build on the ethical base of its product offering to appeal to a wider segment of the market. IBB's strategic goal is to become a mainstream bank catering to the financial requirements of a diverse cross section of the UK market.
As always, we remain focused on finding means to better serve our customers. One important initiative in 2007 was the establishment of Commercial Centres operating primarily as sales channels focusing on addressing the financial requirements of the customers at a personalised level. The Commercial Centres have become a cornerstone of our delivery channels and will enable us to promote our product initiatives in an effective manner.
In 2007 we made major enhancements to our telephone and online banking facilities. In the second quarter our telephone banking capability was enhanced to offer customers automated access to their accounts around the clock. In December, this service was further enhanced with the introduction of additional features and benefits. In June online banking facilities, launched for Personal Banking clients in 2006, were extended to our Business Banking customers. Automated service delivery through our online and telephone banking channels will remain a major growth driver in coming years as we focus on servicing our clients through efficient and user friendly solutions.
IBB achievements in 2007 eclipsed the accomplishments from 2006.
- Customer deposits increased by 61% (£51m) to £135m.
- Customer financing assets increased by 51% (£5.3m) to £15.8m.
- Customer numbers increased by 38% to over 42,000.
- Account numbers increased by 27% to over 64,000.
- Number of customers using online banking services increased by 193% to 10,200. This represents 24% of the total customer base.
- Number of customers using automated telephone banking services reached 8,400. This represents 20% of the total customer base.
The loss for the year ended 31 December 2007 was £6.9m (2006: £8.8m). This 22% improvement was achieved through an increase in operating revenue of 56% to £4.7m whilst maintaining a largely stable cost base.
Having a motivated and focused team is at the heart of our strategy. During 2007 a number of key appointments were made to strengthen the existing structure and prepare the bank for the next phase of its ambitious growth strategy. In June 2007, Mr. Sultan Choudhury joined the board as Commercial Director, and in October, we welcomed Mr. Abdul Hakim Al-Adhamy as a non-Executive Director. I would like to extend my thanks to Mr. Shabir Randeree, who resigned as non-Executive Director in February 2008, for his contribution to the bank's success over the past four years.
As part of our commitment to the socio-economic well-being of our communities,the bank has provided sponsorships to charitable and educational events including Islamic Relief, Global Peace and Unity, Dawatul Islam, Al-Fitrah and the Muslim Women's Network. In addition, the bank was principal sponsor of the Muslim Power 100 initiative, which highlighted the positive contribution Muslims have made to the social, cultural and economic well-being of the United Kingdom.
In 2008 we will continue to pursue new initiatives to address the financial needs of our clients in a comprehensive manner. New services will be launched within a robust risk/return framework consistent with regulatory requirements.
I wish to express my thanks to our Sharia'a Supervisory Committee scholars: Dr.Abdul Sattar Abu Ghuddah, Sheikh Nizam Yaqoobi and Mufti Barkatullah for their invaluable guidance and support throughout the year. We are grateful for their contribution towards the development of the bank.
Finally, I would like to thank IBB's customers and shareholders for their continued support and commitment to the bank. I would also like to thank the bank's management and staff for their hard work and dedication. Their determination and enthusiasm are the foundation upon which IBB will succeed. I have been proud to serve as your Chairman in 2007, and I look forward with confidence to our future.
12 March 2008
Click here to view or download the Annual Report for 2007