The private banking arm of the iconic Harrods luxury department store is set for expansion once it has passed into the full control of its Qatari owners, the Daily Mail reports.

Qatar Holding, a global investment house founded by the Qatar Investment Authority in 2006, bought Harrods from Mohamed Al Fayed for a reported $2.2billion in 2010. The controlling shares in Harrods Bank were however held by a trust which is now to be unwound following regulatory approval being granted by the Financial Services Authority, the report said.

Ahead of taking full control of the banking business, Qatar Holding has formed a new board, the details of which have yet to emerge.

Harrods Bank reported a loss of £1.7 million ($2.7 million) for the year to 30 January 2012, including a provision of £800,000 for an impaired loan. The bank also said at the time its overheads had grown due to IT and human capital investment linked to its expansion plans.

Harrods Bank had not responded to enquiries from WealthBriefing at the time of publication.