The bank has seen an 86% increase in total customer financing, to £450.3m, including Home Purchase Plan financing which increased by 50% to £311.6m; Commercial Property Finance which increased by 304% to £138.5m; a 59% increase in retail deposits to £509.8m and 53% increase in wholesale deposits to £31.7m.
The financial results also described the transformation of a £5.5m loss (restated) reported for 2013 into a profit after tax of £1.2m, and a 168% increase in operating income to £11.8m (£4.4m in 2013).
Al Rayan Bank’s achievements follow its acquisition by Masraf Al Rayan, QSC in early 2014. This was accompanied by a £75m additional investment by MAR and the implementation of a number of strategic initiatives in order to help the Bank achieve sustained profitability.
These included developing products that enable the Bank to secure higher value transactions, and managing inherent risks including online banking and enabling the bank's website to be mobile device friendly.
Al Rayan Bank also received formal shareholder approval, in December 2014, for a change to its name and brand, in line with its new parent company. MAR has an extremely strong brand presence in Qatar and the Gulf Cooperation Council countries and the name change will help to align Al Rayan Bank more closely with its parent, both internally and externally. It will also enable the Bank to grow both nationally and internationally by creating a unified brand for the Group.
Robert Sharpe, the Bank’s newly appointed Chairman said:
“The financial year 2014 has been a momentous one in the Bank’s history and has laid the foundations for a prosperous future. The £75 million additional investment from Masraf Al Rayan was a transformational event, the first results of which we have proudly announced today. The Board believe that stakeholders in the Bank including shareholders, customers and employees have good reason to be optimistic about its future prospects. This is based on Al Rayan Bank having a clear and balanced strategy to increase assets, liabilities and shareholder value, having a strong risk culture and a regulatory capital position that is well above the regulatory requirement.”
Sultan Choudhury, Chief Executive Officer, Al Rayan Bank, added:
“Increasing consumer confidence, the continued strength of the housing market and opportunities to provide property finance to the commercial sector as well as to investors in the Gulf has enabled Al Rayan Bank to post its best results to date. This has all been underpinned by the strong financial and strategic support of the parent company, Masraf Al Rayan. We look forward to even better results in 2015.”
Al Rayan Bank opened its doors in 2004 as the UK’s first wholly, Sharia compliant retail bank. The Bank currently has over 50,000 retail, business and premier customers and has earned a reputation for providing products which appeal to people of any faith.
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 Financial Services Compensation Scheme.
