London-based Bank of London and The Middle East (BLME),
the largest fully Islamic wholesale investment bank
in Europe, has
passed the £500 million mark in new business written by its
leasing arm.
Since attaining FSA authorisation in 2007, BLME’s leasing business
has grown rapidly. The volume of business written in H1 2012 stood
at £106m,
up 58.2% from 2011’s first half total of £67m, which in turn
represented a 96% increase on the previous year’s £19 million.
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The additional business has been generated in
part by BLME’s continued development in the transportation sector,
which now represents 40% of leasing business for the company, up
from 35% last year. The company has also taken a step into the
renewable energy sector, with assets in this market now
representing 4% of leasing business.
BLME’s leasing team has also recruited a new member, bringing it to
a total of 5 employees.
BLME’s new business growth rate is far in advance of the UK
average; according to the Finance and Leasing Association (FLA), in
the three months to June 2012 new business written by members grew
6% year-on-year.
Islamic Banking
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By GlobalDataAs a wholly Islamic bank, BLME operates in
compliance with Sharia religious code. The company’s dedicated
Sharia Supervisory Board reviews all transactions to ensure that
they generate a “fair and equitable” profit.
In
a comment piece for Leasing Life written in September 2011,
BLME’s head of leasing Graeme Laing talks about what he views as
the attractive particularities of Islamic banking, saying:
“For those willing to look beyond familiar territory,
Islamic leasing has become an increasingly attractive option,
mainly due to its competitive business approach and
relationship-based model.”
Sharia law, BLME claims, avoids
speculation, short selling and excessive credit creation whilst
encouraging sound risk management procedures.
