UK Islamic bank BLME eyes LSE listing in 2010

* Says wealth management a core focus in 2009

* 2008 profits beat firm's expectations

LONDON, April 6 (Reuters) - UK-based Islamic Bank of London and the Middle East (BLME) will focus on expanding its fledgling wealth management business this year as it works towards a hoped-for London Stock Exchange listing in 2010.

The bank, which complies with Islamic principles on lending, expected continued demand for Islamic Finance in 2009 but would develop "at a lower growth rate than in 2008," Chief Executive Humphrey Percy said on Monday.

The bank, which was founded in 2006, reported a rise in operating profits to 5.8 million pounds ($8.65 million) last year on strength in its markets, corporate banking and asset management divisions.

BLME said operating profits were ahead of management expectations. A spokeswoman declined to elaborate.

The CEO said in the bank's annual report that it was adequately capitalised following a 75 million pounds fundraising during 2008.

It was now preparing for an LSE listing in 2010, Percy said in a statement, after it considered and shelved plans to enter London's junior stock exchange, AIM, in 2009.