Yes, BLME is safe in the sense that matters to a saver: Bank of London and The Middle East plc is a UK bank authorised by the Prudential Regulation Authority, regulated by the FCA and PRA under firm reference number 464292, and a member of the Financial Services Compensation Scheme, so eligible deposits are protected up to £120,000 per person. Its own 2025 disclosures show a common equity tier 1 ratio of 19.29% against an overall requirement of 15.67%, a liquidity coverage ratio of 308%, and a parent, Boubyan Bank of Kuwait, that owns 72.37% of the group and carries an A rating from Fitch. The honest caveats are that 2025 profit fell to £1.4m, non-performing financing sits above 5% of the book, and the Nomo app is the same bank, so your FSCS limit is shared across both brands. This guide sets out who regulates BLME, who owns it, what the 2025 accounts say, how the expected profit mechanism protects you, and where the risks are.
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Who regulates BLME and what FSCS actually covers
BLME's own Pillar 3 disclosure for 2025 states that the bank is authorised by the Prudential Regulation Authority, regulated by the FCA and PRA, listed on the FCA register under firm reference number 464292, and registered at Companies House as company 05897786 with its office at 20 Churchill Place, Canary Wharf. The Dubai branch is separately regulated by the Dubai Financial Services Authority. For a UK saver the UK authorisation is what matters, because it is the condition for FSCS membership. BLME's savings FAQ confirms the bank is a member of the FSCS and does not share its banking licence with any other bank.
The FSCS limit changed recently. The Bank of England announced on 18 November 2025 that the PRA had confirmed an increase in the deposit protection limit from £85,000, set in 2017, to £120,000 from 1 December 2025, higher than the £110,000 it had consulted on, with the temporary high balance limit rising from £1 million to £1.4 million at the same time. The FSCS page on banks and building societies sets out how it works: £120,000 per eligible person, per bank, for firms that fail after 30 November 2025; joint accounts protected to £120,000 per holder; qualifying temporary high balances such as a house sale or inheritance protected to £1.4 million for six months; and compensation paid automatically within seven working days of a bank failing. The limit applies across all accounts and brands under one banking licence, which is why the Nomo question later in this guide matters.
| Situation at BLME | FSCS position (from 1 December 2025) |
|---|---|
| £100,000 in one Premier Deposit Account | Fully covered: under the £120,000 limit |
| £150,000 split across a Notice Account and a Premier Deposit | Covered to £120,000; the £30,000 above the limit is at risk |
| £240,000 in a joint account held by a married couple | Fully covered: £120,000 per eligible person |
| £300,000 from a house sale deposited three months ago | Covered as a temporary high balance up to £1.4m for six months from deposit |
| £80,000 at BLME plus £80,000 at Nomo | One licence, so covered to £120,000 in total; £40,000 at risk |
| £80,000 at BLME plus £80,000 at Gatehouse Bank | Separate licences, so each £80,000 is fully covered |
The mechanics are explained in our guide to FSCS protection and UK Islamic banks. BLME is inside the scheme on the same terms as any high street bank, and the scheme does not care whether a deposit is called interest or expected profit.
Who owns BLME: Boubyan Bank and the Kuwaiti state link
BLME's key shareholders page lists two holders above the disclosure threshold as at 31 December 2025: Boubyan Bank K.S.C.P. with 72.37% of BLME Holdings Limited, and The Public Institution for Social Security of Kuwait with 7.50%. The BLME Holdings annual report for 2025 adds that Boubyan has been the largest shareholder since the bank launched in 2006, has active representation on the boards of both the bank and the holding company, and that the group draws on Boubyan's technology and systems. Boubyan is itself an Islamic bank, so there is no conventional parent anywhere in the chain.
Fitch's rating report on BLME, published on the bank's own site, explains why this ownership is the single most important safety fact. According to the Fitch report, BLME's long-term issuer default rating of A with a stable outlook is equalised with Boubyan's own A rating, which in turn rests on potential support from the Kuwaiti authorities. Fitch describes BLME as a strategically important subsidiary that gives Boubyan access to the UK market, notes that Boubyan's chief executive chairs BLME's board and that the parent holds three of nine board seats, and observes that BLME accounted for about 7% of Boubyan's assets at end-2024, so a rescue would be manageable. Fitch does not assign BLME a standalone viability rating because the business is too integrated with its parent to be assessed alone. In plain terms, the A is a judgement about Boubyan's willingness and ability to stand behind BLME, not a judgement that BLME could survive anything on its own.
The 2025 numbers: capital, liquidity and profit
The safest way to judge a bank is to read what it is required to publish. BLME's Pillar 3 disclosure for the year to 31 December 2025, together with the audited financial statements of Bank of London and The Middle East plc, gives the figures below. The accounts were audited by Deloitte LLP and approved by the board on 8 April 2026.
| Measure (BLME Group, Pillar 3) | 31 December 2025 | 31 December 2024 |
|---|---|---|
| Common equity tier 1 capital | £225.8m | £227.6m |
| Risk-weighted exposure amount | £1,170.4m | £1,279.0m |
| CET1 ratio | 19.29% | 17.80% |
| Overall capital requirement (SREP plus buffers) | 15.67% | 15.76% |
| CET1 headroom above total SREP requirement | 3.62% | 2.04% |
| Leverage ratio (excluding central bank claims) | 14.95% | 14.98% |
| Liquidity coverage ratio | 308% | 310% |
| Net stable funding ratio | 121% | 125% |
Three things stand out. The CET1 ratio rose during 2025 because risk-weighted assets shrank rather than because capital grew, consistent with a bank running down legacy exposures; the Pillar 3 document confirms the last of the leasing portfolio, the former Walbrook Asset Finance business, was sold on 31 December 2025. The liquidity coverage ratio of 308% is three times the 100% regulatory minimum. And all of the bank's capital is CET1, the highest-quality form, with no additional tier 1 or tier 2 instruments.
Profit is the weaker story. The plc accounts report profit before tax of £1.6m and profit after tax of £1.4m for 2025, down from £8.0m and £7.1m in 2024 as restated. Total operating income was broadly flat at £53.9m against £54.7m, but operating expenses rose to £49.5m from £44.0m, driven by other operating expenses rising from £15.3m to £20.2m on legal and professional fees, and the share of profit from property joint ventures fell to £0.7m from £2.9m. The cost-to-income ratio was 91.8% (80.4% in 2024), pre-tax return on equity 0.7%, and non-performing financing 5.1% of financial assets (5.3%). Customer deposits were £1,183.9m at year end against £1,259.0m, and total assets £1,484.8m against £1,531.6m. The directors' going concern statement says liquidity and capital remain comfortably above minimum requirements under severe but plausible stress, and the subsequent events note records that through the Middle East conflict after year end the bank's Pillar 2 liquidity coverage stayed consistently above 220%, supported by a predominantly fixed-term UK retail deposit base.
Fitch's view of the risks
Fitch's report is useful precisely because it is not written for savers. It describes BLME's risk profile as conservative but concentrated, with large single exposures mitigated by risk controls and good-quality collateral. The Stage 3 (impaired) financing ratio rose to 6.6% at end-September 2025 from 5.3% at end-2024, Stage 2 financing was high at 20%, which Fitch attributes to conservative classification, and Stage 3 coverage was low at 18% but supported by collateral. Fitch expected the Stage 3 ratio to fall below 5% by end-2026 through settlements and restructuring. Customer deposits were 97.4% of non-equity funding at end-September 2025. Its summary line on capital, a CET1 ratio around 20% at end-September 2025, well above the regulatory minimum, with Boubyan expected to address any capital needs, is the sentence a depositor should remember.
- Rating: long-term issuer default rating A, short-term F1, outlook stable, shareholder support rating 'a', no standalone viability rating.
- Downgrade trigger: a downgrade of Boubyan, or any reduction in Boubyan's ownership, integration or strategic need for BLME, which Fitch calls unlikely.
- Profitability: cost-to-income ratio of 80.3% in 2024 and flat net income in the first nine months of 2025 on non-recurring costs, with improvement expected in 2026 from fee income and lower impairments.
Is your expected profit safe? How BLME's agency deposits work
Safety of capital and safety of return are different questions, and BLME is unusually clear about the second. Its savings FAQ explains that both the Premier Deposit Account and the Notice Account operate under the Islamic principle of agency, with BLME acting as your agent to achieve an agreed rate of profit and monitoring the investment to make sure it does. Because it is a Shariah bank it cannot guarantee the rate, but the FAQ sets out what happens if the deposit is not producing the agreed profit: the bank contacts you, and if you choose not to continue it ends the deposit and returns the original amount in full plus profit at the original expected rate, with no penalty for ending early. The product pages repeat the commitment that if the expected rate changes before you deposit, BLME will tell you and let you decide whether to proceed. That is the wakala structure explained in our guide to mudarabah and wakala deposits, and it is why an expected profit rate is not a guess, as we set out in what expected profit rate actually means. Two practical details from the same FAQ: profit is treated as income for HMRC purposes, so it counts against your personal savings allowance like interest would, and BLME does not accept SIPP or pension applications for its savings accounts.
Shariah governance: three named scholars and a zakat statement
The 2025 directors' report names the Sharia'a Supervisory Board as Sheikh Dr Abdulaziz Al-Qassar (chair), Sheikh Dr Esam Khalaf Al-Enezi and Sheikh Dr Mohammad Al-Barrak, with Sulaiman Zaki Al Othman as Shariah consultant. Their report, signed on 8 April 2026, states that the operations, agreements and transactions conducted through the England and Dubai offices during 2025 complied with Shariah, that profit distribution and loss sharing on investment accounts complied, that all profits were derived from compliant sources, and that the board reviewed income from non-compliant sources and will oversee its disposal. BLME also calculates the zakat payable on shareholdings for its shareholders, something few UK banks do. One limitation is stated in the same report: the Saudi subsidiary, BLME Capital Company, is excluded from the Shariah review because the Saudi Capital Market Authority does not require one. Our guide to how UK Islamic banks are regulated explains why the PRA does not supervise the Shariah board and why a published, signed report is the thing to look for.
BLME's savings rates, checked 20 October 2026
BLME's product pages were dated 19 October 2026 when we checked them. The Premier Deposit Account page lists fixed terms from three months to seven years, a minimum of £1,000 and maximum of £1 million, profit calculated daily and paid annually (or at maturity for terms under a year) to a nominated UK account, no additions, and strictly no early withdrawal except on death or terminal illness. The Notice Account page shows Issue 10 of the 90 day notice account paying 4.50% gross quarterly, 4.58% AER, with a £10,000 opening balance, a £1,000 minimum thereafter, unlimited withdrawals of £1,000 or more on 90 days' notice, and top-ups at any time. Both accounts are online-application only, UK residents only, with no online view of the account after opening.
| Premier Deposit Account term | Gross annual rate | AER |
|---|---|---|
| 3 months | 3.95% | 4.01% |
| 6 months | 4.20% | 4.24% |
| 1 year | 4.95% | 4.95% |
| 18 months | 4.65% | 4.65% |
| 2 years | 4.80% | 4.80% |
| 3 years | 4.55% | 4.55% |
| 4 years | 4.35% | 4.35% |
| 5 years | 4.35% | 4.35% |
| 7 years | 4.00% | 4.00% |
The shape of the curve is the useful signal: BLME pays most at one and two years and least at seven, which is the market telling you it expects profit rates to fall. Rates are indicative and can change before you deposit. For how these compare with Al Rayan, Gatehouse and HBZ Sirat, see our fixed term deposit ladder guide and the head-to-head on BLME vs HBZ Sirat. Our BLME provider guide covers the history and award record.
Nomo is BLME: why the FSCS limit is shared
The BLME Holdings annual report describes Nomo as a brand of BLME, a digital bank offering multi-currency current accounts, fixed term deposits in sterling, dollars and euros, an instant access saver and property finance through the Nomo app, aimed at high net worth, affluent and mass affluent customers, overwhelmingly in the Gulf. Legally it is the same bank under the same licence, FRN 464292. Deposits under different brands of one firm are protected only up to £120,000 in total, so a saver with money at both BLME and Nomo has one limit, not two. For UK residents this rarely bites because, as our Nomo guide explains, the app is not open to UK residents; for a Gulf-based reader with a Nomo account who is considering BLME's UK savings products, it is the first thing to check.
What could go wrong
None of the following threatens an FSCS-protected balance, but each is worth understanding before you lock money away for up to seven years. The first is earnings. A bank making £1.4m on £1.5bn of assets, with a cost-to-income ratio above 90%, is not building capital from profit, and a second year of rising legal costs or a large impairment would eat into the 3.62% CET1 headroom. The second is concentration. Fitch flags large single exposures in UK real estate, and a Stage 3 ratio of 6.6% is high for a bank of this size, although it is collateralised and expected to fall. The third is the region. The parent is Kuwaiti, the wealth clients are Gulf residents, and the directors themselves name the Middle East conflict in their subsequent events note; the bank's answer is that its deposit base is predominantly fixed-term UK retail money and that liquidity stayed above 220% through the period. The fourth is operational: there is no online access to a BLME savings account, profit cannot be compounded within the account, and a Premier Deposit cannot be broken early short of death or terminal illness. Set against all of that, the structural protections are the same ones that make Al Rayan Bank safe: PRA supervision, FSCS cover and a wholly Islamic parent, here applied to a smaller, more concentrated and better-capitalised bank.
Our view
For a UK saver with up to £120,000 to place, BLME is safe, and the question should move to whether its products suit you. The case for it is a one-year expected profit rate of 4.95% and a seven-year term that is the longest among the UK Islamic banks in our registry, a signed Shariah report from three named scholars, a zakat calculation for shareholders, and capital and liquidity ratios well above what the PRA requires. The case against is practical rather than prudential: a £10,000 entry point for the notice account, no online servicing, annual profit only, and a fixed term that cannot be broken. Keep balances under the limit, remember that Nomo shares it, and do not treat the Fitch A as a standalone verdict on BLME; it is a verdict on Boubyan. If you need more than £120,000 of cover, split across licences, for example with Gatehouse Bank, rather than stacking at one bank. We would like to see profitability recover in the 2026 accounts before describing BLME as anything more than adequately profitable; its safety does not depend on that, its long-term rate competitiveness might. Facts checked against blme.com, fscs.org.uk, bankofengland.co.uk and the Fitch report hosted on blme.com on 20 October 2026.
Frequently asked questions
Is BLME covered by the FSCS?
Yes. Bank of London and The Middle East plc is a PRA-authorised UK bank, FCA firm reference 464292, and a member of the Financial Services Compensation Scheme. Eligible deposits are protected up to £120,000 per person, a limit that rose from £85,000 on 1 December 2025. Joint accounts get £120,000 per holder, and temporary high balances are covered up to £1.4 million for six months.
Who owns BLME bank?
Boubyan Bank K.S.C.P. of Kuwait, an Islamic bank, owned 72.37% of BLME Holdings Limited at 31 December 2025, and The Public Institution for Social Security of Kuwait held 7.50%. Boubyan has been the largest shareholder since BLME launched in 2006. Fitch rates Boubyan A with a stable outlook and equalises BLME's rating with it because it expects Boubyan to support the bank if needed.
Is BLME financially strong?
On capital and liquidity, yes. BLME's 2025 Pillar 3 disclosure shows a CET1 ratio of 19.29% against an overall requirement of 15.67%, a leverage ratio of 14.95%, a liquidity coverage ratio of 308% and a net stable funding ratio of 121%. Profit is weaker: £1.4m after tax in 2025, down from £7.1m, with a cost-to-income ratio of 91.8% and non-performing financing of 5.1%.
Is the BLME expected profit rate guaranteed?
No, because a Shariah bank cannot guarantee a return. BLME acts as your agent under a wakala arrangement and aims to achieve the stated rate. Its FAQ states that if a deposit is not producing the agreed profit, the bank will contact you, and if you choose not to continue it returns your original deposit in full plus profit at the original expected rate, with no early termination penalty.
Does Nomo share BLME's FSCS limit?
Yes. Nomo is a brand of Bank of London and The Middle East plc, not a separate bank, so money held at BLME and at Nomo counts towards a single £120,000 FSCS limit. Nomo is not currently open to UK residents, so this mainly affects Gulf-based customers who hold both. For a second £120,000 of cover, use a bank with its own licence such as Gatehouse or Al Rayan.
What rate does BLME pay in 2026?
On 19 October 2026 BLME's Premier Deposit Account listed expected profit of 3.95% gross at three months, 4.20% at six months, 4.95% at one year, 4.80% at two years, 4.55% at three years, 4.35% at four and five years and 4.00% at seven years. The 90 day Notice Account (Issue 10) paid 4.50% gross quarterly, 4.58% AER, with a £10,000 opening balance. Rates are indicative and can change before you deposit.
Can I access a BLME savings account online?
No. Applications are online only, but BLME's FAQ states there is no online access to the account afterwards and no digital banking. Profit and maturity proceeds are paid to a nominated UK bank account in your name, notice account withdrawals are requested through a web form, and the bank sends an annual statement and tax certificate after each tax year.
Sources
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- Bank of England, PRA confirms FSCS deposit limit to be increased to £120,000 from 1 December (18 November 2025)
- FSCS, Banks, building societies and credit unions: how FSCS protects you (limit changed 1 December 2025)
- BLME, Pillar 3 Disclosure 2025 (as at 31 December 2025)
- BLME, Bank of London and The Middle East plc Annual Report and Financial Statements, year ended 31 December 2025 (approved 8 April 2026)
- BLME, BLME Holdings Limited Annual Report and Financial Statements, year ended 31 December 2025
- BLME, Key Shareholders of BLME Holdings Limited as at 31 December 2025
- Fitch Ratings, Bank of London and The Middle East plc rating report (end-3Q25 data), hosted by BLME
- BLME, Savings FAQ: FSCS, licence, expected profit rate and account access (checked 20 October 2026)
- BLME, Premier Deposit Account expected profit rates (as of 19 October 2026)
- BLME, Notice Account expected profit rates (as of 19 October 2026)
