Qatar's QIIB helps Islamic Bank of Britain to cut losses

Majority shareholder Qatar International Islamic Bank provides extra capital of $15.5m
Qatar's QIIB helps Islamic Bank of Britain to cut losses
Islamic Bank of Britain
By Reuters
Tue 30 Apr 2013 10:29 AM

Islamic Bank of Britain (IBB) narrowed its losses in 2012, Britain's only sharia-compliant retail lender said, a week after it raised £10m ($15.5m) from majority shareholder Qatar International Islamic Bank.

IBB, which has struggled to turn a profit since its inception in 2004, posted a loss of 6.99 million pounds in 2012 versus a loss of 9 million pounds a year earlier.

Home financing business helped narrow the gap by nearly doubling to 117 million pounds in 2012 versus 61 million pounds a year earlier. The bank did not disclose personnel or administrative expenses, which in the past have represented the bulk of its costs.

Last week, IBB raised 10 million pounds by placing 1 billion shares with QIIB at a price of 1 penny each, raising the number of its outstanding ordinary shares to 4.5 billion, according to regulatory filings.

"The additional 10 million pounds of capital will allow us to fund our asset growth and transformation programme, as we head towards a more stable and in the long term profitable financial position," Sultan Choudhury, IBB's managing director, said in a statement.

QIIB, which now owns 91 percent of IBB, has been in discussions since last June with Qatari lender Masraf Al Rayan to sell a controlling stake in the British bank.

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