Trading Update

 

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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