Trading Update
February 05 2009 - 6:14AM
UK Regulatory
TIDMIBB
RNS Number : 8511M
Islamic Bank of Britain Plc
05 February 2009
FOR IMMEDIATE RELEASE
5 February 2009
ISLAMIC BANK OF BRITAIN ("IBB", "Company" or "Bank")
TRADING UPDATE
The Board of the Islamic Bank of Britain PLC announces the following trading
update.
The continued decline in economic conditions and its impact on the financial
services sector, and banks in particular, is well publicised. Since we last
commented on current trading and prospects in the circular to shareholders on 26
November 2008 we have seen further declines in the UK banking environment.
Since obtaining its banking licence in 2004, the IBB Board has pursued a
strategy to grow the Bank and generate revenues from varied sources including
fee and commission income. However, unlike many high street banks, IBB's main
revenue source remains the profits it earns on deposits. Net margins earned on
these deposits have declined due to the general market conditions. This has had
a negative effect on the income of the Bank.
The financial results of IBB over the last few years have shown steady
improvement. The Directors believe, as a result of the current economic climate,
the results for the year ending 31 December 2009 will be negatively impacted and
that it will now take longer for the Bank to reach breakeven.
The Board is currently assessing action to mitigate the impact of the decline in
revenues on profitability as a result of declining margins. The Board will
continue to review the Company's financing structure and pursue opportunities
for profitable growth. Whilst IBB has sufficient capital for its current
requirements, the Board intends to raise further capital in the future to
support the Company's growth.
IBB remains the only full-service wholly Sharia-compliant retail bank operating
in the UK. The Bank enjoys low exposure to unsecured or high risk assets. The
Bank will continue to strive for growth in revenues from its Sharia-compliant
products and to attract longer term customer deposits.
For further information:
Islamic Bank of Britain plc
Gerry Deegan, Managing Director0121 452 7300
Grant Thornton UK LLP (Nominated and Financial Adviser)
Gerry Beaney 020 7383 5100
Charles E Cattaneo 0121 212 4000
ENDS
This information is provided by RNS
The company news service from the London Stock Exchange
END
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