Al Rayan Bank PLC, the UK’s largest Islamic bank by assets and one of the fastest growing banks in the country, has reported a 32 percent increase in its annual pre-tax profits, driven by the rapid growth in Bank’s balance sheet which increased by 43 percent to more than £1.44bn (about QR6.79bn).
Al Rayan Bank yesterday announced a record pre-tax profits of £8.2m (QR38.67m).
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.
Some of the other highlights from the Bank’s annual report suggest that its Home Purchase Plan (HPP) financing witnessed a remarkable increase of 41 percent to £637m and Commercial Property Finance increased by 44 percent to £393m. While the retail deposits with the Bank grew by 67 percent to over £1.2bn. The Bank’s investments in Sukuks (Islamic bonds) increased by 38 percent to £167m.
The year 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,” added Robert.
To ensure its strong growth and profitability are sustained, Al Rayan Bank has a number of strategic priorities for the coming years,
Sultan Choudhury (pictured), 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.”
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.
