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Prince Amr Al Faisal & Ahmed Abdul Rahim

Ithmaar Bank reports stable, consistent growth

MANAMA, February 20, 2020

Ithmaar Bank, a Bahrain-based Islamic retail bank, has posted a net profit of BD2.48 million ($6.53 million) for 2019, an 82.5 percent decrease compared to the net profit of BD14.14 million reported for 2018.

The profit in 2018 was mainly due a one-off gain from Dilmunia Development Fund I L.P when it became a subsidiary of the Bank in 2018, a bank statement said.

Ithmaar Bank’s financial results show a net loss attributable to equity holders for the three-month period ended December 31, 2019 of BD4 million, a 2,509 percent increase compared to the net loss of BD0.15 million reported for 2018 resulting mainly due to prudent impairment provisions.

Total net loss for the three-month period ended 31 December 2019 was BD2.8 million compared to the net profit of BD9.38 million reported for 2018.  

As a result, the net loss attributable to equity holders for the year ended 31 December 2019 was BD1.35 million compared to the net profit of BD1.41 million reported for 2018.

 “On behalf of the Ithmaar Bank Board of Directors, I am pleased to report that, although the Bank did not report a profit for the year, it continues to report stable, consistent growth with improved products and services as well as increased customer deposits,” said HRH Prince Amr Al Faisal, chairman.

“This is in line with the Bank’s commitment to focusing on its core retail banking business while working to realise our shared vision of becoming one of the region’s leading retail banks,” he said.

Total income for the year ended 31 December 2019 was BD171.22 million, a 12.8 percent increase compared to the total income of BD151.78 million reported for 2018, mainly due to increases in core income. Operating income for the year ended 31 December 2019 was BD83.59 million, remaining stable and with a 0.3 percent decrease compared to the BD83.82 million reported for 2018.

Ithmaar Bank’s total assets stood at BD2.98 billion as at 31 December 2019, a 4.7 percent decrease compared to BD3.13 billion as at 31 December 2018, mainly due to a decrease in the investment securities portfolio of a subsidiary. Total owners’ equity stood at BD79.17 million as at 31 December 2019, a 7.3 percent decrease compared to BD85.39 million as 31 December 2018, resulting mainly from the impact of the devaluation of Pakistan Rupee.

Despite challenging conditions, the equity of unrestricted investment account holders grew to BD1.06 billion as at 31 December 2019, a 6.9 percent increase compared to BD0.995 billion as at 31 December 2018, reflecting customer confidence in the Bank.

“The Bank’s unwavering focus on its core retail banking business is building a stable foundation while setting the stage for continued growth,” said Ithmaar Bank chief executive officer, Ahmed Abdul Rahim.

“The focus throughout 2019 has been on preparing the Bank to fully realise the tremendous opportunities that lie ahead. This, in turn, has earned the Bank two key awards in 2019, both reflecting our ability to stay ahead of the curve both locally and regionally as well as highlighting the significance of our digital initiatives,” he added. – TradeArabia News Service




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