Finance & Capital Market

Ithmaar posts $3.95m Q1 profit; operating income up 16pc

Ithmaar Bank, a leading Bahrain-based Islamic retail bank, has reported a net profit of BD1.502 million ($3.95 million) for the first three months of 2022 when compared to BD1.547 million ($4.07 million) last year. Its operating income surged by 16% to BD20.193 million ($53.2 million) over the same period last year.
 
Announcing its financial results for the three-month period ended March 31, 2022, Ithmaar said its net profit attributable to equity holders stood at BD0.196 million compared to BD0.153 million in 2021. 
 
The bank’s total liabilities, including unrestricted investment accounts, increased to BD3.306 billion as of March 1, 2022, up 2.4% compared to BD3.231 billion last year.
 
Lauding the performance, Chairman Prince Amr Al Faisal said the bank was poised to start its next phase of evolution on strong, solid footing
 
"This marks an important milestone in the Group’s transformation, in line with the strategic decisions taken by shareholders, as we add to our decades-long history as key pioneers of the region’s Islamic banking and finance industry," he stated.
 
The next phase, which will see Ithmaar focus exclusively on serving corporate customers, particularly the fast-growing SME sector, follows an announcement in January 2022 that its parent company, Ithmaar Holding, and Al Salam Bank agreed in principle on the acquisition by Al Salam Bank of the consumer banking business of Ithmaar Bank in Bahrain, as well as Ithmaar Holdings’ ownership stake in both BBK and Solidarity Group Holding. 
 
Following the acquisition, which was approved by Ithmaar Holding shareholders at an Extra Ordinary General Meeting in March, the bank will continue as a wholly-owned unit of Ithmaar Holding, licensed by the Central Bank of Bahrain and specialised in Corporate Banking and related services, after obtaining the final approvals from the regulatory authorities. 
 
The assets and liabilities subject to the above transaction have been presented separately as ‘held-for-sale’ in the consolidated financial information in accordance with the relevant accounting standards. 
 
CEO Ahmed Abdul Rahim said the bank’s financial results show that efforts to transform the Group have paid off, with the Bank perfectly positioned to best capitalise on the exciting challenges and growth opportunities that lie ahead in the corporate banking space. 
 
"The bank’s financial results for the period ended March 31, 2022 show operating income increasing to BD20.193 million, a 16 percent increase compared to BD17.350 million for in the same period last year," he added.-TradeArabia News Service