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Al Rayan Bank (UK) announces record pre-tax profits

Al Rayan Bank (UK) announces record pre-tax profits

Al Rayan Bank PLC, the UK’s largest Islamic bank by assets and one of the fastest growing banks in the country, today announced record pre-tax profits of £8.2million. The 32% increase in pre-tax profits has been driven by the rapid growth in Bank’s balance sheet which increased by 43% to more than £1.44bn.

The results continue the upward profitability trajectory that was set in motion when Al Rayan Bank was acquired by Masraf Al Rayan QSC (MAR), one of Qatar’s largest banks, in February 2014.

Highlights from the Bank’s Annual Report include:

  • Customer financing increased by 43% to £1.44bn and includes:
    • Home Purchase Plan (HPP) financing, which increased by 41% to £637m
    • Commercial Property Finance, which increased by 44% to £393m
  • Retail deposits grew by 67% to over £1.2bn
  • The Bank’s investments in Sukuks (Islamic bonds) increased by 38% to £167m

2016 also saw the Bank attract new customers in record numbers and open more than 16,000 new accounts at an average of nearly 44 a day. This was achieved while the Bank strengthened the management team and continued to execute a transformational business strategy, designed to ensure that it maintains its steady growth, control over its costs and sustained profitability in the years ahead. And, at a time when other High Street Banks are closing branches, Al Rayan Bank is expanding its footprint in the UK, opening three new offices in Wembley, Bradford and Glasgow – the Bank’s first physical presence in Scotland

Robert Sharpe, Chairman, 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. Funding will continue to keep pace with the Bank’s asset growth.

„The Bank will continue to focus on balancing risk and return to deliver profitable growth, while maintaining a prudent and disciplined approach to risk management.“

To ensure its strong growth and profitability are sustained, Al Rayan Bank has a number of strategic priorities for the coming years, including:

  • Expanding its Home Purchase Plan product range
  • Increasing its exposure in the Commercial Property Finance (CPF) market
  • Increasing its High Net Worth customer base
  • Continuing to lobby the government to create a level playing field for Islamic finance in the UK
  • Establishing cutting edge digital banking services

Sultan Choudhury, CEO, Al Rayan Bank said: „With a balance sheet of £1.44bn and retail liabilities at £1.2bn, 2016 has been another a year of success for Al Rayan Bank. 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.“

Al Rayan Bank was established in 2004 and has been a pioneer of British retail Islamic banking. The first wholly Sharia compliant retail bank in the UK, it has earned a reputation for providing innovative products which appeal to people of any faith. In 2016, the Bank was named as the third fastest growing bank in the UK by pre-tax by profits, in a complete financial analysis of all 155 UK incorporated banks*.

As an independent UK bank, Al Rayan Bank is authorised by the Prudential Regulation Authority, regulated by the Financial Conduct Authority and the Prudential Regulation Authority and is a member of the Financial Services Compensation Scheme.

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* Bank League Tables 2017, a complete financial analysis of all 155 UK incorporated banks, Searchline Publishing 2017