BLME

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BLME
Private
Industry Banking, Financial services
Founded 2006
Founder Humphrey Percy
Headquarters London, United Kingdom
Area served
 Europe, USA, Asia
Key people
 Humphrey Percy
(Chief Executive Officer),

Nigel Denison
(Executive Director),

Richard Williams
(Finance Director)
Revenue Increase UK£ 52.40 million (2012)
Website www.blme.com

BLME (Bank of London and The Middle East Plc) is an independent UK wholesale Sharia’a compliant bank and is the largest Islamic bank in Europe.[1] It was founded in 2006 and offers financial services in three core areas: wealth management, corporate banking and treasury. Bank of London and The Middle East Plc is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority[2] and the Prudential Regulation Authority.

History

BLME was first incorporated in London on 7 August 2006, originally under the name House of London and The Middle East, changing to Bank of London and The Middle East in July 2007.[3] Humphrey Percy, Founder and CEO, met with the original sponsors, Boubyan Bank,[4] establishing their common ambitions to build a market leading wholesale Islamic bank.

BLME received authorisation[5] from the Financial Services Authority (FSA) in July 2007 with a full set of permissions and European passporting.

Since its launch the bank has grown significantly.[6] In 2008 BLME completed their second private placement bringing their total capital base to £250million.[1] BLME launched their Wealth Management division including a Private Bank and Asset Management offering in early 2009.

Since its establishment, BLME has won numerous awards for its services, including several from Islamic Finance News Awards:[7] Best Islamic Bank in Europe (2008),[8] Best Islamic Bank in UK (2009[9] & 2010,[10] 2011, 2012[11] and 2013) Best Islamic Leasing Provider (2009)[9] and Deal of the Year (2009).[9] BLME was also awarded the WIBC[12] Institutional Excellence Award in 2009.[13] In 2011,[14] 2012[15] and 2013[16] BLME was awarded Best Islamic Bank in Europe by Global Finance Magazine. In 2013 BLME won Reuters/Zawya Best International Asset Manager of the year award.[17]

Islamic Finance

Islamic finance is a very large and fast growing industry, which is predicted to be worth $5 trillion by 2015.[18]

Sharia’a-compliant financing avoids speculation, short selling and excessive credit creation whilst encouraging sound risk management procedures. Complying with Sharia’a also means that BLME does not invest in activities prohibited by Sharia’a or against the public interest, including arms production or trade, alcohol, pornography and gambling.

Under Sharia’a law, interest is usury and thus haram (forbidden). Islamic finance therefore prohibits the payment or acceptance of interest charges (riba) for the lending and accepting of money.

There are four main types of contract used by Islamic financial institutions in the UK:

  • Ijara is a bilateral lease contract allowing the transfer of the use of an asset rather than the sale of the asset. This contract can be structured so that the ownership is transferred to the lessee at the end of the original agreement.[19]
  • Mudarabah is a partnership contract, where one party provides the funding and the other, usually a financial expert, manages the project, after which the customer and the bank share any profits.
  • Murabaha is a form of credit, enabling the customers to make purchases without taking out an interest bearing loan. It is a cost plus financing transaction which includes an agreed profit margin, where the payment is deferred for an agreed period of time.
  • Musharakah is a flexible partnership contract between two or more parties who all contribute capital towards the funding of a project or asset. Profits are pre-agreed, with any losses being shared on the basis of the contributed capital.

BLME and Sharia’a Compliance

As an Islamic bank, BLME ensures that its services are wholly Sharia’a compliant and uses this principle to underpin all of its practices. From the very beginning, the bank has had a dedicated a Sharia’a Supervisory Board (SSB) to review contracts and agreements.[20] This ensures that all policies, practices and governance are in compliance with Sharia’a and Islamic jurisprudence, rooted in transparency, fairness and clarity.[21] This Sharia’a specific regulation and governance is in addition to the conventional regulation that applies to all UK based financial institutions.[22]

Key Areas of Expertise

Corporate Banking

Corporate Banking at BLME provides a full suite corporate banking offering that includes property finance,[23] leasing,[24] acquisition finance,[25] asset based lending finance[26] and trade finance.[27] Clients range from family business to multinational corporations; they work in a variety of business sectors including online shopping,[28] real estate, transport,[29] energy,[30] health care[31] and technology.

Wealth Management

Private Banking

BLME provides a private banking service that centres on property acquisition, sourcing and finance for high-net-worth individuals.[23]

Asset Management

BLME launched the first Sharia’a $ Income Fund at the start of March 2009 which has its own SSB.[32] In 2011 BLME launched two new funds: the BLME High Yield Fund (May 2011)[33] and the Light Industrial Building Fund (LIBF).[34] In February 2011 BLME launched a Sterling and Euro share class for the US Dollar Income Fund.[35]

Islamic Capital Markets

Islamic capital markets focus on structuring and distribution of Sharia’a-compliant assets.[36] BLME manages large club transactions in equipment leasing and property.[37]

Treasury

BLME's treasury management is responsible for the funds of the banking division and manages liquidity.[38]

Management Team

Humphrey Percy – Founder and Chief Executive Officer

Humphrey Percy has over 30 years of banking experience, and he focused his career on treasury and global markets, working at J. Henry Schroder Wagg, Barclays Merchant Bank, Barclays de Zoete Wedd and West LB.[39] With these companies he has held positions including CEO, Managing Director, General Manager, and Head of Global Financial Markets. Humphrey is experienced in building new functions and product areas: he has managed start-up businesses within both BZW and West LB, and he founded his own business in 2002.

Nigel Denison – Executive Director and Head of Wealth Management and Treasury

Nigel joined BLME as Director and Head of Markets Division in November 2006. Prior to this he was Head of European Sales for West LB’s Global Markets Unit which included Treasury, Capital Markets and Emerging Markets. Nigel began his career at Barclays Merchant Bank, subsequently BZW where he became Head of Trading for Barclays Swaps and Options European business, based in London. He then spent some time in New York where he took over the derivatives trading operations for Barclays.

Richard Williams - Executive Director and Finance Director

Richard joined BLME as Finance Director and Company Secretary in November 2006.[40] He qualified as a Chartered Accountant with KPMG in 1980, and spent his early career in Investment Banking was spent with Chase Manhattan, Credit Agricole and Bankers Trust. Richard then spent 10 years at Robert Fleming & Co setting up their Global Equities Derivatives business which took him to Tokyo, before spending 3 years in Hong Kong with Jardine Fleming. Richard also has experience with start up companies and in private equity with Legal and General Ventures.[41]

See also

References

Notes

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External links

  • [1] Bank of London and the Middle East official website
  • [2] Beginners Guide to Islamic Finance
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