Ithmaar Bank, a premier Islamic retail bank, reported profit of $3.6 million for the first quarter, compared to $3.8 million in Q1 last year, after recognising prudent impairment provisions of $8 million.

The operating income for the quarter was $42.9 million.

“The financial results of the first quarter indicate that our core banking activities, consisting of retail and corporate banking, continue to remain a stable source of recurring income,” said Ithmaar Bank chairman Prince Amr Mohammed Al Faisal.

“Our subsidiaries and associates have continued to perform well, despite challenging market conditions, and we are particularly pleased with the performances of Faysal Bank in Pakistan and BBK in Bahrain.”

“Overall, our expenses remained stable, at $41 million, despite an increase in the number of branches.”

“Shareholder equity has increased and remains strong, at $798 million as at March 31, 2010, compared to $711 million as at December 31, 2009,” he added.

“Balance sheet footings have marginally declined from $5.2 billion as at December 31, 2009 to $4.9 billion as at March 31, 2010, mainly due to lower interbank balances,” he said.

Ithmaar Bank acting chief executive officer, Mohamed Hussain noted that the consolidated Capital Adequacy Ratio remained stable, at 14.4 per cent.-TradeArabia News Service