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Islamic bank posts record profits after commercial spike

Alex Lynn | 10:30 Wednesday 10th May 2017

Sharia-compliant Al Rayan Bank has posted record profits following a surge in property finance.

The bank reported pre-tax profits of £8.2m for the year ended 31st December 2016, up 32% on the previous year.

This success was driven in part by a 43% rise in customer financing to £1.4bn, with the value of commercial property finance and home purchase plans climbing 44% and 41% respectively.

Robert Sharpe, chairman of Al Rayan Bank, said: “Despite political uncertainty, market volatility and regulatory changes, 2016 was another year of progress for Al Rayan Bank, both in respect of financial performance and strategically.

“The bank has again delivered a set of results which reflects positively on the success of our strategy, our focus on customers' needs and our excellent people.

“Al Rayan Bank will continue to concentrate on its core franchise of retail and private banking and commercial real estate finance, executing a clear strategy to increase assets in its current product range and customer segments.”

Al Rayan's retail despoits grew 67% last year to reach over £1.2bn, with customers opening more than 16,000 new accounts.

The bank's investments in Islamic bonds, or Sukuks, also increased 38% to £167m.

It now hopes to expand its range of home purchase plan products, increase its exposure in the commercial property finance market and establish cutting edge digital banking services in the years ahead.

Sultan Choudhury, CEO Al Rayan Bank, added: “The bank is strong and profitable, and continues to grow.

“Whilst these numbers are central to the continuing success of the bank, equally important is the growing appeal to its non-core markets.

“Today more than a quarter of our customers, and almost a third of the Bank's employees are estimated to be non-Muslim.

“It is through this wide appeal that Al Rayan Bank will become an enduring British banking brand.”

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