Ithmaar Bank, a Bahrain-based Islamic retail bank has announced a net loss of BD4.5million ($11.8 million) for the nine-month period ended September 30, compared to a net loss of BD5.9 million for the same period last year.

“I am pleased to announce that Ithmaar Bank continues to grow its core retail banking operations and has significantly reduced its loss, both for the year-to-date and for the third quarter,” said Ithmaar Bank chairman Prince Amr Al Faisal.

“The financial results show a net loss of BD1.7 million for the three month period ended 30 September, which is 74.1 per cent lower than the net loss of BD6.5 million reported for the same period last year,” he said.

“I am also pleased to report that operating income continues to be stable, at BD56.7 million, despite a significant compression of margins in overseas subsidiary due to 100 basis points cuts in benchmark profit rates in the past year,” said Prince Amr.

“This resulted in a net profit, before impairment provisions and taxation, of BD3.1 million for the nine month period ended September 30, compared to BD5.6 million in the same period last year.

“The profit before impairment provisions and taxation for the three-month period ended 30 September 2013 was BD2.2 million compared to BD2.9 million in the same quarter last year. This is a significant improvement from BD0.8 million reported for the first six months of 2013,” he said.

“Expenses have also continued to reduce,” said Prince Amr continued. “Total expenses for the nine-month period ended September, at BD53.7 million, are 3.1 per cent lower than the BD55.4 million reported for the same period last year, this is despite the full period impact in 2013 of several new branches opened in Bahrain and by overseas subsidiary during this period in 2012,” he said.

“I am also pleased to report that the balance sheet continues to be stable, with the equity of unrestricted investment account holders recording an impressive growth of more than 16.6 per cent, from BD607 million as at 30 September 2012, to BD708 million as at 30 September 2013,” said Prince Amr.

“Meanwhile, Ithmaar’s focus on growing low-cost customer liabilities resulted in an 8.6per cent decrease in certain high cost liabilities in an overseas subsidiary due to investors, as well as banks, financial and other institutions,” he said.

“Liquid assets, comprising cash, balances and commodity placements with banks, financial and other institutions, have also increased and represent about 15.1per cent of the balance sheet as at 30 September” said Prince Amr. “These balances, which increased from 13.6 per cent as at 31 December 2012, exclude investments in government securities held by an overseas subsidiary,” he said.

Ithmaar Bank acting CEO Ahmed Abdul Rahim said that the Bank remains committed to realising its board-approved vision of becoming the region’s premier Islamic retail bank.

“We continue to invest heavily in developing our products and services while also working to be closer to our customers,” said Abdul Rahim. “The financial results, which show an increase in the equity of unrestricted investment account holders as well as a reduction in both losses and expenses, indicate that our efforts are paying off,” he said. – TradeArabia News Arabia