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Prince Amr Al Faisal and Ahmed Abdul Rahim

Ithmaar Holding swings to $10m net profit in 2018

MANAMA, February 13, 2019

Ithmaar Holding, a Bahrain-based financial institution, has reported a net profit of $10.06 million for the year ended December 31, 2018, as compared to a net loss of $72.40 million for 2017.

This included a net loss attributable to equity holders for the year ended 31 December 2018 of $23.98 million, as compared to the $84.71 million net loss reported for the same period in 2017. EPS for the year has improved to negative US Cents 0.82 compared from negative US Cents 2.91 for the same period in 2017.

The results included a net loss of $1.28 million for the three-month period ended 31 December 2018, as compared to a net loss of $56.2 million for 2017. Net loss attributable to equity holders for the three-month period ended 31 December 2018 was $26.71 million, a decrease of 53.7 per cent as compared to a net loss of $57.67 million reported for the same period in 2017. EPS for the three-month period ended 31 December 2018 decreased by US Cents 0.92 compared to negative US Cents 1.98 for the same period in 2017.
 
“On behalf of the Ithmaar Holding Board of Directors, I am pleased to announce that, despite increasingly challenging market conditions, the Group is continuing its planned transformation in 2018 and concluded the year with remarkable achievements,” said Prince Amr Al Faisal, chairman of Ithmaar Holding.. “These included improved financial performance, as well as the realisation of key growth initiatives.”

“The 2018 results show that net income before provision for impairment and overseas taxation for the year ended 31 December 2018 increased to $43.42 million, a 96.8 per cent increase from the $22.10 million reported for the same period last year,” said Prince Amr. “This was mainly due to higher share of profit after tax from associates resulting from reclassification from held-for-sale to associate during the period.”

“As a result, our operating income for the year ended 31 December 2018 increased to $259.82 million, a 12.7 per cent increase from the $230.56 million reported for 2017. Operating income for the three-month period ended 31 December 2018 was $48.34 million, a 2.3 per cent decrease from the $49.48 million reported for the same period in 2017,” said Prince Amr.

Ithmaar Holding chief executive officer, Ahmed Abdul Rahim, who is also the Ithmaar Bank Chief Executive Officer, said that performance of both institutions against the challenging market conditions of 2018 further reconfirm that sustained efforts to turn the Group around are indeed paying off.

“Ithmaar Bank’s financial results show a net profit of BD14.14 million ($37.3 million) for the year ended 31 December 2018, an increase of 126.7 per cent compared to the net profit of BD6.24 million reported in 2017,” said Abdul Rahim. “Net profit attributable to equity holders for the year ended 31 December 2018 was BD1.41 million, a decrease of 10.9 per cent compared to the net profit of BD1.58 million reported in 2017.”

“The results included a net profit of BD9.38 million of the three-month period ended 31 December 2018, compared to a net loss of BD0.44 million reported in 2017. Net loss attributable to equity holders for the three-month period ended remains unchanged at $0.15 million compared to same period previous year.

“Net income before provision for impairment and overseas taxation for the year ended 31 December 2018 was BD13.70 million, a 28 per cent decrease compared to the BD19.03 million reported for 2017. Total income remained stable in 2018, with the Bank reporting BD151.7 million for the year ended 31 December 2018,” he said.

“Ithmaar Bank’s balance sheet decreased marginally by 3.5 per cent with total assets at BD3.13 billion as at 31 December 2018, compared to BD3.24 billion as at 31 December 2017,” said Abdul Rahim.

“Meanwhile, due to market conditions, the equity of unrestricted investment account holders stood at BD1 billion as at 31 December 2018, a decrease of 6.6 per cent as compared to BD1.06 billion as at 31 December 2017. Total owners’ equity stood at BD85.39 million as at 31 December 2018, a 44.8 per cent decrease compared to BD154.60 million as 31 December 2017, mainly due to the Accounting standard, FAS 30 impact of previous year recognized in equity and the foreign exchange impact of devaluation of Pak rupee during the year recognized in equity,” he said.

“I am also delighted to inform you that Ithmaar Bank’s retail banking subsidiary in Pakistan, Faysal Bank Limited, has maintained growth momentum and the Bank’s footprint now extends to 455 branches in more than 100 cities across Pakistan, after having added 50 branches during 2018. The Bank aims to have expanded its retail banking network by 100 during 2019 to reach 555 branches by the end of 2019,” he added. – TradeArabia News Service




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