February 3, 2023


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Al Rayan Financial institution to broaden residential funding finance and premier divisions

  • Al Rayan Financial institution will deal with increasing its industrial and premier divisions from 2022
  • The Financial institution has now financed over £1billion in Business Property Finance (CPF) since 2015
  • Financing belongings have elevated by 6% to greater than £1.86bn over the past twelve months after focusing technique on residential funding finance.

Al Rayan Financial institution, the UK’s largest and longest established Islamic financial institution, has introduced particulars of the following section of its strategic improvement. 

The Financial institution will proceed its transition to develop into a monetary establishment which is concentrated on premier banking and property, primarily residential investments, to ship a viable, resilient, Sharia compliant enterprise. Al Rayan Financial institution’s current retail banking enterprise will likely be maintained, and current dwelling finance clients will proceed to be provided aggressive product swap rental charges.    

Working carefully with its Qatari dad or mum financial institution, Masraf Al Rayan (MAR), Al Rayan Financial institution will search to extend its premier buyer base by rising and enhancing the services that it affords and leveraging the improved scale of MAR. This follows MAR’s merger with fellow Qatar financial institution Al Khaleji in November 2021 which created one of many largest Sharia compliant banks within the Gulf Cooperation Council (GCC) with over QAR182 billion (£37 billion) in complete belongings.

Al Rayan Financial institution’s profitable residential funding centered CPF enterprise, which grew by 20% in 2021 is seen as a key driver of future progress. The Financial institution has seen its CPF portfolio greater than double in worth since 2015 with current residential funding offers – akin to a £24.5m workplace to residential funding finance deal in Newbury and Bracknell, and a £19m funding finance deal in opposition to 245 residential flats in Luton – serving to to contribute in direction of greater than £240m of CPF enterprise final yr.

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In 2022, Al Rayan Financial institution will amend its portfolio danger urge for food to make sure it has the flexibleness to serve UK and GCC particular person and company clients successfully.

The Financial institution will proceed to take a position closely in expertise together with important funding in technological structure, infrastructure and governance. The Financial institution may also proceed to comply with shopper demand by prioritising funding in its Digital Banking channels.

Commenting on the strategic announcement, Al Rayan Financial institution CEO Giles Cunningham stated, “Al Rayan Financial institution has grown persistently because it was established in 2004 and at present it’s worthwhile and effectively capitalised; certainly all through 2021 the Financial institution noticed a big enhance in profitability, pushed by the very robust efficiency of the industrial division.”

“UK banking is amongst essentially the most extremely regulated on this planet, however it’s also quick paced, dynamic and presently present process profound change. To make sure that Al Rayan Financial institution is finest positioned to supply world class Sharia compliant services to our clients, and develop sustainably in the long run, we should develop into extra focussed on the markets during which we function.”

“All people linked with Al Rayan Financial institution is rightly very pleased with its historical past because the longest established and largest Islamic financial institution within the UK.  We are going to at all times be a Sharia compliant financial institution and these adjustments will assist guarantee the continued stability and success that our clients, colleagues and shareholders deserve.”

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Commenting on the expansion of CPF, Maisam Fazal, Chief Business Officer at Al Rayan Financial institution, stated: “Towards a backdrop of Covid-related macroeconomic disruption, our CPF enterprise has grown considerably. That is primarily because of the Financial institution’s deal with giant UK residential funding finance agreements of circa £10million. The final two years, with the pandemic, have proven us the resilience of the residential funding sector which has outperformed most different industrial property sectors and thus we’ll keep our deal with progress on this market.”

“The robust efficiency of CPF additionally highlights rising buyer demand for Sharia compliant residential funding finance merchandise. We’re wanting ahead to working with our purchasers and serving to them to construct extra in depth portfolios within the months forward. We’re additionally planning to broaden our CPF product proposition and re-enter some industrial property markets.”

Al Rayan Financial institution is the oldest and largest Islamic financial institution within the UK. The Financial institution is authorised by the Prudential Regulation Authority and controlled by the Monetary Conduct Authority and the Prudential Regulation Authority and is a member of the FSCS. The Financial institution is the one Islamic financial institution within the UK to obtain a public credit standing.