Noticed this bank new to the market recentley. any comment would be welcomed

Friday Papers: UK's first Islamic bank to float - bid news and gossip
Published: 07:51 Fri 27 Aug 2004
By Phill Cozens, Stockmarket Correspondent


UK's first Islamic bank has confirmed it is seeking a 40 million float on AIM.

The Islamic Bank of Britain operates entirely within Sharia law, which means it does not charge or offer customers interest. For example instead of offering mortgages with interest payments the bank will buy a property and then sell it back to the resident at a premium via fixed monthly payments.


The 40 million will be raised through an initial public offering and private placing of 160 million shares at 25p each.

This share is unlikely to do well.

I heard it's going like a bomb!

You would need a microscope to tell the difference between that property purchase scheme and a normal interest-bearing repayment mortgage.

So....... let me get this straight.......

The only way that the bank can make a profit (assuming that they want to make a profit) is by having one string to it's bow, namely buying the property in question and then selling it to the person who really wants to buy it at a premium ?

I can see the wisdom in that and of course I would guess that there would be far fewer defaulters to worry about. I can see it making money over the long term, but not as much by far as the major players at the moment.

It HAS to carry out fundamental functions of a bank, doesn't it ?
It HAS to invest it's money just like any other bank, doesn't it ?

Anyone give me a starter for 10 so that I can DMOR ?

I'm keeping my eye on it. It's an interesting one.......

Of course it does have a ready made customer base. 2 million Muslims in Britian.

And just think on the off chance it takes off where else can you buy a bank for 28p

http://www.islamic-bank.com/islamicbanklive/GuestHome/1/Home/1/Home.jsp

There's a good place to start your research. It has Muslim and non-Muslim customers. And it pays a "profit dividend" rather than interest. I need to look at the basis on which it pays it and how it is calculated.

Hmmmm..... interesting Bond........ very interesting

They are opening branches in Birmingham next year.I know a lot of musliams up there. I`ll make a few calls see what the interest is. They are also geting into internet banking. just have a feeling about this one. Mind you, that means nothing going on my track record! Ho Ho

I am a muslim and was thinking of getting my Mortgage from them. I think there will be a lot of muslims taking up their sharia compliant Mortgage.

Hi Azhar....... Can you tell me whether the cost of the "loan" compares favourably with a Standard variable rate mortgage offered by other lenders ? And if there are any drawbacks ?

Thanx...

Some of my friends have taken mortgages with them recently and have said the costs per month are similar. The draw back is that the deeds are with the bank and not on your name.

I'm considering a business plan for an anglo-saxon bank of saudi arabia.

I'm considering buying some IBB stock.......... but if he'd said no, it's dirt cheap, I would have left it alone...........

Shukrya

i'm considering a plan for a Christian bank of Saudi Arabia.

Mmm well good luck in your plan but doubt it will get beyond your planning stage. It could be construed as spreading Christianity. and they are not as tolerant over there as the UK.

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STOP.

aldwickk,

Please do not spam this or any other thread.

Regards

Ian

Up two days in a row.
I do think this is worth looking at.

John,noticed your IBB enquiry yesterday.Check out www.dib.ae this is the web site of the Dubai islamic bank and should give you some more info.Islamic banks compete side by side with conventional banks here in the middle east and do very well.I won't bore you with my theories as I am very new to share trading and have jumped in more on gut feeling and local knowledge.Only to the tune of 3000 shares.hope the web site will help.Good luck.

As I have told you all, it is still static at 27.5p, not much of a premium...not worth buying.

hlyeo98, I'm not in yet but considering buying. Could you elaborate when you say "not much of a premium...not worth buying". look foward to your views.

opening more branches next year and internet banking. Talked to Muslim friends in Birmingham, they all intend to open accounts. Next year will be very interesting I hope.

News


Business News Article

Islamic Bank of Britain sets its sights on Europe Oct 8 2004




Birmingham Post


The fledgling Islamic Bank of Britain is already considering a move into mainland Europe from its base in Birmingham.

Managing director Michael Conlon said the Aim-listed bank, the first wholly Sharia'a compliant retail bank in the UK and possibly western Europe, had beaten all its targets in its first few weeks of operations.

Speaking at a celebratory lunch at the International Convention Centre yesterday , Mr Conlon said the bank had its "sights set on a wider European presence".

He told guests: "Some 14 million Muslims or so reside within western Europe and they too are lacking in banking services which are compliant with their religious needs.

"We are confident that having built up an initial successful track record here in the UK, we have a business model which can be easily transported to other jurisdictions with an attractive proposition to present to the wider European consumer."

IBB, which has its head office in Hagley Road, recently opened its first branch, in London's Edgware Road.

A second will open in Coventry Road, Small Heath, Birmingham, later this month to be followed by a third in Leicester.

Mr Hanlon told The Birmingham Post that IBB planned to open branches in every UK city with a sizeable Muslim population.

"When we opened the Edgware Road branch we were a little overwhelmed by the response and I had to send extra staff down to London to help handle the volumes," he said.

Islamic principles prevent the paying or receiving of interest and any money invested must be in ethical funds that do not deal in tobacco or alcohol stocks.

IBB's retail products, which are approved by City regulator the Financial Services Authority, have been designed with the help of specialist Sharia'a scholars.

In the case of a mortgage, the bank buys the property on behalf of the customer who then pays the bank rent equivalent to the monthly mortgage repayment until the debt is paid off when ownership passes to the customer.

The removal of double stamp duty on such transactions has increased demand among the UK's estimated 1.8 million Muslims and mainstream retail organisations such as the West Bromwich Building Society and HSBC, the high street bank, have moved in on the market.

But IBB is the first bank to offer consumers a full range of retail banking services and demand is already high, according to Mr Conlon.

Its accounts and loans are available also to non-Muslims and the bank expects to win trade from the big western institutions alleged by critics to be ripping off their customers.

Simon Murphy, chief executive of Birmingham Forward, said: "The launch of the Islamic Bank Britain is a statement of confidence in the strength of Birmingham's financial services sector."

IBB currently employs 55 staff, 65 per cent of whom are Muslims, and expects numbers to grow to about 250 within five years.

Its Aim flotation was heavily oversubscribed and raised its capital base from 14 million to 50 million.

Trading in IBB shares starts on October 12.




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very interesting article. Thanks

Hi Azhar

At 26p its surely a chance to get in at the ground floor and wait.
I wonder when and if they plan to give dividends.

johngrinsell
Surely dividends would contravene the basis upon which an Islamic Bank operates. I have no problem in being corrected but aren't dividends a form of interest - and a contradiction?

No mg. Dividends are a portion of the profits made by the company. cos the bank is wholly sharia compliant the profits made by the bank will also be HALAL so the divdend would be acceptable.

azhar
Thanks - not too well up on sharia law - is it something to do with zirkat (sp?) - as one of the pillars of islam ??

Sharia law covers everything in life from birth to death from running a home to running a business, punishment etc..

Zakah is one of the 5 pillars of Islam which means everyone with more than about 650 (current rate) and has had that amount saved for at least 1 year will need to pay 2.5% to the poor and needy.

Ill send you all my address pronto then :-)

azhar
Thanks for that - it's one of the many admirable aspects of Islam that gets lost in these difficult times.

I'm not a religious person myself but have regard for those for whom faith is a constant in their life. As long as it is not used as an excuse to get involved in those things for which it is not intended ;)

Iain, LOL!

Up a bit today I see.
Hope the price starts to pick up now. Have a feeling IBB will do well.
I read somewhere they plan to do internet banking next year.

This kind of banking system is too difficult to operate in modern societies. Don't think it will do well. Refer to this week's Investor's Chronicle.

I could see no article in Investor`s` Cronicle.

Still 27.75p after all this time...so static.

New branch opened in Birmingham this month and more to open this year. I rang them to find out about Mortgage products. They were very helpful but have no product until later this year. I know an ex bank manager who has just purchased shares. Very little down side.

Downside is 100% same as any other share.

You know what I mean Dill. IBB is regulated by the financial sevices authority, this being the difference between this bank and other foreign Islamic banks that have failed. I think my cash is safe, but if you want 100% safety put your money in the builing society.

it will be 27-30p by end of year

If you think that just dont buy any. They will at some time give a dividend too I would think.

johngrinsell, I agree with you there is a lot of backing by the Arabs and we all know they have a lot of dosh. this will be going place and they already have 20 million in the bank. expanding all the time and soon will stretch out to Europe. One to buy and hold in my opinion.

Azhar
I phoned them the other day and they were really helpful. It was a refreshing change to talk to someone who was interested in what I had to say. I would be really interested in there mortgage product later this year. I`m sure people are thinking this bank is just for muslims, but I think that when they start to grow people like myself who are not muslim will become more interested.

Hi
It will be 35 p in april.Its interim report is coming in april.hold for a ride

Up 20% in the last 2 days.

Amazing performance in last couple of days. Only thing I've seen is that they have started Internet banking. I think there will be strong demand for mortgages when they start as existing Islamic mortgages are still making profits for non Islamic banks. The only question is what price do you put on IBB? We'll have a better idea after the results.

hi
Its above than mine expectation. its ibb day today

Nice to see a share price doing nicely today. A little gold mine springs to mind.
:-)

up another 32%.

looks good and tempted to buy but not sure why a sudden rise.

what a day

lots of buys coming through looks good so far,is there something happening or any news that some one can reflect on this.

Amid all the excitement, a question:
What happens if the bank have to repossess?
Would that happen in the normal standard way?
Excuse the ignorance..

Also,who pays for maintenance,the owner IBB or the tenant?

Budget boosts Islamic Bank

One of the main beneficiaries of last week's Budget was the Islamic Bank of
Britain (IBB). The group saw its shares soar 143 per cent to 65p this week
after Gordon Brown said that Sharia'a-compliant bank accounts will be taxed
on the same basis as conventional ones, allowing the group to develop more
products.

http://www.addicted2shares.co.uk

azhar
luck seems on your side with this one,
you deserve it,

Excuse my ignorance, but having worked and been in many Islamic countries, one of the cornerstones of Islamic banking is that it makes no profit from the money and nor does the customer. That's why you get 0% interest credit cards, 0% rate mortgages, and also you no interest on your savings. Is it really an Islamic bank, and if it is, then, well, I wonder whats going on.

From their final results

"There is no difference between the retained loss for the year and the retained
losses on an historical cost basis.

The result for the year is derived entirely from continuing activities.

There were no recognised gains or losses in the year other than the loss set out above "


I must admit to being lost here as to why the shares are suddenly wanted ?!

Perhaps a tipsters play.

If you miss a repayment on a sharia mortgage, do they chop your hands off?

The most successful bank in Bangladesh is Islamic bank.Islamic bank will have a great impect on banking system here. Jews will forse TALABIB to order WHITEHOUSE to instruct British authority to shut Islamic bank. This will be the end of the story.

This no interest deal sounds good for the borrower, but who in their right minds is going to lend money to the banks for nowt?

acw - an interesting though somewhat illiterate and naive posting.

Are you for real?

acw: I'm not very surprised that an Islamic bank is successful in an Islamic country like Bangladesh. I don't think that anyone, Jewish or otherwise, can force the British authorities to close a Bank that obeys British laws.

Surely the key question is whether the Bank actually can truly follow Sharia law while operating in in a competitive Western banking environment.

Derek

Why does the phrase: "A one bit brain with a parity error" spring to mind when reading acw's post?

There is no such thing as British authority to NWO people. They run the world from TALABIB.

Here we go guys the next leg up has begun. good luck all. looks like most people are confused with the way this type of bank works. In Islam making money is allowed (LOL!),it's the usuary which is forbidden i.e to lend money and expect more back without any effort. Buying and selling is well respected, our beloved prophet Mohammad (pbuh)was the best amongst all in all things. He was also a well respected and trusted business man.

IBB buy the house so the deeds are not on your name. They rent the house and you pay a monthly rental fee, in the end they transfer the deeds to the rightful owner. Throughout this process you do end up paying around the same amount as with a conventional mortgage.

OK moving up nicely today people!
:>)

You must have made a killing azhar!!

Yes being greedy at the moment. me thinks there's plenty more steam left.

Good for you azhar!
:>)

up another 17% to 89p. I'm out for now. good luck all.

Any reason for bailing out apart from profit.azhar,or do you know something we dont.

Over time I've learned to take profits plus i've been a bit greedy with this one. happy with my profit will buy back in IF it drops back.

do you really think this company will do well, everyone?

so, azhar, you dont think it will go up any futher than 90p

Buys outweighing sells also some broker has off loaded 700,000 shares,is this the time to sell and get back in around 75p mark or less,i am sure this will come to a halt at some stage,or i might prove to be wrong.

i'm fairly new in share dealings, do you know any other companies doing well ateeq?

sorry Rohimul i my self have been learning the game,but if you look at the likes of Goldfingers posts and jimmyB,they have done some good researches on different companies,and i have learnt a lot from them, in terms of reading there posts and than making my own decisions.Good luck.

thanx ateeq

ateeq, whats the website address bro?

for what?

goldfingers, or is that a name of a person, sorry i'm confused a bit?

You will notice from the posts its the name of the person.if you check under the stock for mmg and dgm,these are the epic codes for the stocks.check under the codes you will get some insight about goldfingers comments,but always make sure you do your own research before investing,because decision is yours.

thanx again

to keep an eye out for goldfinger & jimmyB, every little tip helps!

Rohimul - 30 Mar'05 - 12:44 - 110 of 120
so, azhar, you dont think it will go up any futher than 90p

BRO these will go a lot higher in the longeterm than 90p. shortterm there will be profit taking cos ppl are sitting on 300% profits and tend to get twitchy fingers. can't blame them.

azhar, can you give me any tips on shares, what I need to watch out for etc. It seems you very knowledgeable at this.

I have to admit I got in and out of these fairly quickly, I also
sold today, it was a good profit margin in a short time, which
is possibly whats happened with others who have sold today as well.

Once it starts to drop you can get further falls as stop-losses trigger
which can make the fall worse and make it look really bad. I'm sure once
the quick profit merchants are out (and I include myself in that) it should
stabilise and then move up again.

Good luck to those still in!
:>)

Rohimul keep eye out for TEP (wait for around 150), WLF (good time around now), ZOO (around now), AFG (wait for 6p) Good for next 6 months.

Rohimul
It's a bit dangerous to include your work email address, particularly as it is at the Department of Constitutional Affairs, a Government Agency.

It's up to you but I would advise you to edit your post and remove the email link - there may well be several thousand people out there who can start sending you spam and junk mail.

Just a bit of friendly advice ;)

mg

1- 1.25p target by next week.

azhar

Can you send me some stuff too

email address is mg@thongs-r-us.com

Gausie

rohimul,

If you liked these then you might like to take a look at Biofuels. They have similarly experienced a lot of momentum partially due to government legislation in the budget. Worth watching as they have dipped and may rise again once the plant is up and running.

Woody

looks like we might get another day like today,lots of big buys at the end.

Guys don't get carried away and buy just because somebody on any board has tipped them. trust me it doesn't always work. By all means listen, pickup any tips but always do your own research before buying otherwise there is a big chance of loosing a lot of hard earned cash.

Thursday March 17, 12:41 PM
Budget - Tax Treatment Changes For Islamic Finance Products

One relatively overlooked item in the Chancellor's Budget was announced changes in legislation relating to the tax treatment of Islamic financial products. After discussions initiated by the Islamic Bank of Britain (LSE: IBB.L - news) - the UK's only Sharia'a compliant bank - Mr Brown has taken on board the need for changes in taxation, including the treatment of profit earned on deposit accounts. In effect, the new measures will put the said products on a level playing field with comparable non-Islamic products.

Islamic deposit accounts are operated under the Sharia'a compliant principle of Musaraba, which is based on a profit sharing arrangement. Customers provide the funds and the bank provides the expertise to use those funds and generate a profit. Such profit is then shared between the bank and its customers.

Until now, income tax has not been withheld from profit paid on Sharia'a compliant savings accounts but has been fully taxable in the hands of a UK customer. The changes will mean that the lower rate tax on 'profits' can be deducted at source, as happens with conventional savings accounts. The result is that some customers, who may currently be required to complete tax returns, won't have to, and it will simplify the process for others.

The changes will also clarify the taxation of profit charged on Islamic financing facilities based on the principle of Murabaha, whereby the bank buys the goods and services and then sells these to the customer at a mark-up, but on deferred payment terms.

The Chancellor's latest announcement builds on changes made by the Government in 2003 relating to Islamic home finance products, which tackled the issue of double stamp duty. The current changes extend the relief for double stamp duty to cover a new Sharia'a compliant property finance product offered in the UK.

http://uk.biz.yahoo.com/050317/22/fefwa.html

"Islamic deposit accounts are operated under the Sharia'a compliant principle of Musaraba, which is based on a profit sharing arrangement. Customers provide the funds and the bank provides the expertise to use those funds and generate a profit. Such profit is then shared between the bank and its customers."

Now, everybody, let's see if we can spot the difference between that and interest. Am I mistaken, or is this all just semantics?

Semantics.
Anti-Semitism.
We'll see.

http://moneyam.uk-wire.com/cgi-bin/articles/200503310730033708K.html

Back in again guys

Thanx Azhar, I've removed the e-mail address. My word.... IBB crashed down a lot today! Any reason why that happened? It was doing very well for the last few days.

I'm out again @69. If you read the report above by prodman that will explain the fall. this will still be going places for longterm holders. I would personally wait for around 50+p before getting in again. tho you never know with this one.

azhar - It is expensive to keep going in or out of these the spread can be large

is it advisable to sell now or just hold?

woodyAM true. But i made 's so I'm out. Rohimul have you bought and @ what price?

Rohimul did you get in AFG just went under 6p and now back to 6.5p

I BOUGHT AT 82, 4000, AT THE MOMENT I'M HAVING A PANIC ATTACK!

Bro with current valuation the sp is way overvalued. I think it should be around 61p. The markets always try to build in the future growth etc.. which in this case is good and they are also thinking about moving into europe etc..

If I was in your position and had cash i would have bought more @57 this am and averaged down. this way you could have been in profit by now and could have decided to hold or sell.

At the moment this could go either way short term but i think your money is pretty safe in the medium to longterm. Then again nothing is safe these days. Always do your own research and don't let your decisions be influenced by others (that includes ME).

Rohimul
You have two choices:
1. Get out now and make a loss based on the price you bought at.
2. Stay in and wait for the price to stabilise and hopefully rise.

These two choices are going to have to be faced if you are trading
shares at some point if a share turns and heads down on you and they
do that from time to time.

Personally I'd get away from the screen for a few minutes, go and make
yourself a cup of tea or coffee, have a ciggie if you smoke, get into
the fresh air for 5 minutes or whatever.

BECAUSE
Only you can make the choice between the two choices above AND
you have more chance of doing it well if you have a clear head and
feel a tad calmer then you appear to feel right now.

Azhar, Stockbunny... thank you both, I think I'll sit back and do some work and make the decision before close of business today. It's starting to recover so fingers crossed.

Good Luck Rohimul and whatever you decide I hope it works
out well for you. I think we have all been in that situation
so understand how you felt.
:>)

azhar is right wait till a more favourable time,
MARKET REPORT:1400 HOURS
News of full-year losses from high-flying Islamic Bank of Britain saw profit takers move in, leaving it 9p lower at 72p.

Another tick down and weekend approaching. possible bad press over the weekend papers on the widening loss which may bring the SP down further next week. My next entry point now 40-50p.

also its reported they will be opening more banks
so more expediture in the short-medium term

I've just sold my share, and I made a massive loss. I'll have to try and recover it from another company. Anyone know of any other companies that could be doing well?

Told you about ZOO they are up over 10% today.

Yep, WLF are doing ok too.

More to come on both.

Azhar - quite a few buys at IBB - as you are on all the boards and so knowledgible what do you say - get in time??

pension271
just go back a page he has mentioned it

Guyz, I've noticed EID (Eidos), doing well, there's also talk of a takeover. Thought you guys might be interested.

rohimul, you might want to look at gmc or evs, both undervalued, in profit& cash generative.as always dyor.

All we need now is Sue Helen to turn up !

What makes you think she hasn't?

Nothing , thats my point .... many aliases.

Be careful , good luck.

Dil

She's hiding in that bourka. I recognise the crazy eyes.

stevetmade, thankx, I'm gana have a look into thos companies.

Why should some one buy 425,000 shars at 2.47pm if they did not had faith in this company,i think there is potential in this.short term but thats my view,please dyor.

buying spree continues in the last half hour.

the price is still unstable, going up and down

i think you should be wary myself

http://www.uk-wire.com/cgi-bin/articles/200504041505485739K.html

My entry point now 30p. not looking good may i say.

Azhar - i have been following this board for sometime and notice you put in one liners like your post 170 - do you have any specific info to back up your comments? Would really appreciate further info as I am new to this game and I notice the simplicity of the famous EK's approach - what goes up goes down and he short the gainers!!

This company is so unpredictable, today it seems its on it way up, but you never you, it could suddenly come down.

britian... the small country on the east of the arabian peninsular?

Cannot quite follow what Mr Magoo is trying to post - seems he killed the posts here.
Azhar / Rohimul I see the IBB up again today - any comments??

Pension 271, I've noticed IBB recovering well this week, but this company is upredictable, it could suddenly crash down. I'm going with Azhar, buy at around 30-40, if it comes down that is.

dont expect 30 but may be 40-45.good luck

can Rohimul , Squirrel2005 or Azhar please tell me on what facts you base your target 30, 40-45, I am new to the game and cannot understand how unless one has some info one can base such figures. Thanks

pension271, IBB currently have a Mkt cap 200 million and 3 million losses. Don't get me wrong this will deffinately be going places but it's not worth that much at the moment. I think the curent value of 60p has aleady a fair bit of future growth included. As always DYOR.

Thanks Azhar -top of the morning to you.

I am from first day Ibb share holder. Its price is over heated because of daily traders and short terms investors for a quick profit when they will take out their money out the price will drop. Ibb never crossed even 31 p before 20th march .it was always between 25-28 p . its market capital was 110 million which is increased to 250 millions because ibb final report. Unfortunately it was not as good as it was expected so lot of people took their money out. Ibb got a real potential of growth . UK got 2 million muslim population according to a recent survey by lloyds and hsbc and barcley every fifth muslim want islamic banking service, which mean at least 400000 muslims and other ethik investors will sooner or later move to IBB etc. i dont think 55-60 is right at its today books so just wait till end of april and I believe it will normalise . short term investor will not wait so long it is a long term investment. so good luck

Has anyone any news - nearly 2,000,000 buys against 400,000 sales - cannot find anything anywhere????

Right then guys and gals. IBB now approaching my buy price again. Like I said earlier will get in around 32p

it's going up again!

Islamic Bank of Britain Plc
29 June 2005


ISLAMIC BANK OF BRITAIN PLC

'Halal' Personal Finance is another first from Islamic Bank of Britain


Islamic Bank of Britain, the UK's only totally Islamic British bank, has
launched a Sharia'a compliant personal 'loan' facility, making it the only
provider of 'Halal' unsecured finance in the UK.

The new unsecured facility allows customers to generate cash funds between
1,000 and 20,000 using the Islamic principle of Murabaha with deferred
payments. The end result is that consumers can get a finance facility similar
to a conventional loan but in accordance with the Muslim faith which prohibits
the use of interest.

Michael Hanlon, managing director of Islamic Bank of Britain explains: 'We aim
to offer our customers as much choice and flexibility as possible when it comes
to their finances. As a result, we are often first to launch new products. We
are already the only British bank offering Sharia'a compliant savings accounts
and now we are also the only provider in the UK offering Sharia'a compliant
unsecured finance.'


How It Works

The process is simple for the customer, and only requires one visit to the
branch or application via post. Islamic Bank of Britain then works to ensure
that the personal finance facility is run in accordance with Sharia'a. The Bank
buys commodities and then sells them to the customer for the cost plus the
Bank's profit. The customer then becomes the owner of the commodities. An
independent agent then sells the commodities on the customer's behalf for the
market price and puts the resulting cash into the customer's account for the
customer to use to finance their purchase. The customer then pays the bank in
monthly instalments over a period of time. Repayment periods of 12 to 60 months
are available.

It marks the first time that Britain's 1.8 million Muslims have had access to a
personal finance facility from a British bank which is wholly operated in
accordance with Islamic Sharia'a principles.

Islamic Bank of Britain is regulated by the FSA and meets UK banking regulations
and safeguards for the customer. It opened its first branch in London last
year, was admitted to trading on AIM, a market operated by the London Stock
Exchange, in October and now also has five branches in Birmingham, Leicester and
London with a further five more branches planned for 2005.

Customers outside of the branch areas can use the bank's services via telephone
and postal banking (to the Bank's UK based customer service centre. Telephone
0845 6060 786). An internet banking service is planned for launch at the
beginning of 2006.

Islamic Bank of Britain ensures that it does not compromise Islamic principles.
All products and services are overseen and approved by a Sharia'a Supervisory
Committee comprised of world- renowned experts in the implementation of Islamic
principles and their applications within modern-day financial institutions.

To find out how to apply for an Islamic Bank of Britain Personal Finance
Facility (18 years or over and UK resident) or for more information on other
Islamic Bank of Britain products and direct banking service call 0845 6060 786
or visit
www.islamic-bank.com

Islamic Bank Britain launches Sharia'a loan facility
AFX

LONDON (AFX) - AIM-listed Islamic Bank of Britain PLC said it has launched a Sharia'a compliant personal 'loan' facility, making it the only provider of 'Halal' unsecured finance in the UK.

The new unsecured facility allows customers to generate cash funds between
1,000 and 20,000 using the Islamic principle of Murabaha with deferred
payments.

The end result is that consumers can get a finance facility similar
to a conventional loan but in accordance with the Muslim faith which prohibits
the use of interest.

I have no interest in IBB and have no advice to give either way.

Thought you might be interested in this piece in the Questor column (see this mornings Telegraph).

"Uphill for Islamic Bank of Britain

There are more than 2m Muslims in Britain who have until recently been ill-served by traditional financial institutions. The religion places strict conditions on the sort of products they can buy, not least banning the paying or receiving of interest.

Enter the Islamic Bank of Britain, which listed on Aim last August and is backed by a group of mainly Islamic shareholders, such as the Qatar International Islamic Bank. Yesterday, it announced a new financing arrangement that makes it the UK's only provider of "Halal" unsecured finance.

Competition has already emerged from more traditional institutions such as Lloyds TSB and HSBC, in addition to foreign banks such as Habib Bank. Unlike the western banks, though, IBB can claim to make no earnings at all from interest bearing products.

It does also offer some unique products, but there is nothing preventing rivals copying those that are successful. Added to which, IBB is not expected to be profitable until 2006 at the earliest. The shares yesterday finished down p at 36p. Even though the demographics look favourable, it has to be questioned what exactly IBB offers when blue chip institutions provide Sharia compliant products. There is little to recommend the shares. Avoid."

I can't agree

BBC news, I heard 50% growth in islamic mortgage is expected.

STAN us almost 7%. No news IMO

Hi guys 18 p for a bank now looks interesting. what do you guys think ? good time to go in or you think this is going down ?

was expecting it to go back to the 27p level where it has been for a long time i have been that would be a 9-10p (30%) gain

This one is still at least 2 years from profitability.
It will be a long wait although the downside is limited.

Ian

I have to express sorrow at my ignorance of Islamic culture and banking in particular. However, I suspect it is very straight, but worry that non-muslims would not bemefit from all the good bits. Further I wonder if there will ever be a dividend (it's against their principles, isn't it?)
The sp has shown some weakness, but I suspect their business will grow if it's properly conducted.
Unfortunately Islamic fundamentalists and "muslims" apper to be one and the same in many minds, something that will take many years to correct and even longer to erase. Therefore I wonder the wisdom of an equity investment here and, from this thread, I see the IPO was at 25p, - so today's price doesn't show much change.

In the last 5 years a lot of 'muslim money' has been invested in Islamic countries/companies because of fear of having funds/assets being frozen in US and EU. $ Billions have left US economy, which is reflected in weak dollor. I know a lot of people who have switched their banking to IBB recently although I am not sure how many have bought other services like mortgages etc.

This is a baby

Christians also are not allowed to charge interest, which they didn't used to do,
thats why there were a lot of jewish money lenders (they didn't follow christian laws).

So let me get this straight, The Islamic bank buys properties at market value and charges the same markup as you would pay on a similar interest deal which will be more than double the original price, the ancient christians would call this interest
and didn't do this practice, the Cambridge dictionary also defines this as usary and is forbidden in sharia law (you can't fool god or Allah)

I don't think all the muslims in britain will take this up, because a lot of them are not devout muslims but are westernised , and will want the cheapest deal on offer, which might happen to be HBOS.

Having said that, there will be enough people who join to make it a highly profitable business. However i don't think religion and capitalism should mix in this way, and when people start to get their homes repossessed or default on loan payments, the Islamic bank will come to be hated as much as the big four british banks.

Some big banks are also offering the same service.

One thing everyone should remember for those unaware of asian culture, is that
Asians do not borrow up to the eyeballs in debt like british people, but save and buy collectively, they also hold a lot of wealth in real currency (Gold!).
So don't expect the loan book of Islamic bank to look like the US budget deficit.

Good look guys i'm not investing!

The name (Islamic) makes IBB one step ahead of any competitor. IBB has the infrastructure and also received support from Islamic community and investors.

hlyeo98
And your point is.

no need for words, the chart says it all.....

You can see for yourself

It is not a big buy by a director - 6500


Islamic Bank of Britain director Mohsen Moustafa picks up 0.024 pct stake in co - AFX

LONDON (Thomson Financial) - Islamic Bank of Britain PLC said its director Mohsen Moustafa has bought 100,000 shares at 0.065 stg each, acquiring a 0.024 pct stake in the company.

I bet he's a bit pissed off, he could have saved a grand and bought today.

1.4m buys and only 250k sells but price ends up down 0.75p..??!

I think it is because he bought only 100,000 shares in the hope of boosting the share price. If he bought 1 million shares, that would have been a different matter.

More importantly 6500 is the total value of his holdings in the company. Pretty poor for someone in his position. Obviously he dosn't think that the company is worth investing in, so why should we. I held these several years ago and made a substantial profit when they rocketed to 74p. I may consider another tickle if the price keeps falling.

i wonder whats caused the 30% rise today...?

I just think they looked to cheap @ 5.5p I have a 100k holding, so perhaps I could get on the board.

What was that about 150% rise in 2 days, I,m out @ 12.5p very happy
Good Luck

700202
Been watching well done.

Driver thanx, I do not no the reason for the rise but who cares weeeeeeeeee
I,ll be back in @ 8p if it goes there

700202
Look what you started it will be at 8p sooner than you thought.

Driver I did say if

It,s getting there

bought at 10p waiting for 14 to exit fingers crossed

NOT FOR JEWS.

This shows Islamic banking does not differ much from western ones.