Interim Report: 6 month period ended 30 June 2008
6 month period ended 30 June 2008
Registered number 4483430
Contents
Chairman's statement
Income statement
Balance sheet
Statement of changes in equity
Cash flow statement
Notes to the financial statements
Independent auditors' review report
Chairman's Statement
I am pleased to present the Interim Report of Islamic Bank of Britain PLC for the six months ended 30 June 2008. This has been a period where, despite adverse market conditions, the Bank continued to show steady growth in customer numbers, deposits and financing and to reduce operating expenses compared to the same period last year.
Some performance highlights:
- Growth in customer numbers of 5.5%
- Growth in deposits of 7.2%
- Growth in customer financing of 13.3%
The operating loss for the half year was reduced by 21% to £3.1 million compared to the same period last year (6 month period ended 30 June 2007: £3.9 million). This was achieved through an increase in operating income of 22% to £2.6 million, and a 6% reduction in operating expenses to £5.7 million.
Home Purchase Plan
On 1 July 2008, the Bank launched its Home Purchase Plan product. This product represents a major investment in the Bank’s future and will become a key product in the Bank’s forthcoming marketing and sales initiatives.
The product follows the Bank’s commitment to provide Sharia-compliant, innovative products, with the Home Purchase Plan being the only product of its kind that allows customers to fully apply online. This extends the Bank’s reach to customers nationwide. The technology used in this flagship project will be utilised with other products in the Bank’s existing, and forthcoming portfolio.
Other accomplishments
April 2008 saw the launch of the Bank’s Wakala treasury deposit account, which has enjoyed a strong early performance whilst reducing the costs of treasury transactions. The Direct Savings account also performed well during the period, following a successful marketing campaign, increasing the Bank’s diversified deposit base.
In addition to the Home Purchase Plan IT developments noted above, the Bank’s IT infrastructure has been significantly upgraded since the beginning of the year. This included construction of a new state-of-the-art data centre, providing enhanced security and capacity for future growth, and upgrading the core banking platform, to improve performance and enable further upgrades.
The Smart Banking channels continue to grow, with the number of customers using online banking increasing 4% during the half year to reach 28%, while the ratio of customers using automated telephone banking services advanced to 23.5%. This is in accordance with the Bank’s strategy to grow service delivery through efficient, user-friendly channels.
I would like to thank Islamic Bank of Britain’s customers, shareholders, and staff for their continued support and commitment to the Bank. I am encouraged by the progress we made in this challenging banking environment. I look forward to continued improvement and growth.
Mohsen Moustafa
Chairman
17 September 2008
Click here to view or download the 6 month period ended 30 June 2008 Interim Report.