Ithmaar Bank, a Bahrain-based Islamic retail bank, has posted a net profit of $13 million for the first half of 2015, as compared to a net profit of $1.77 million for the same period last year, marking a rise of 634 per cent.

Net profit for the three month period ended 30 June 2015 amounted to $5.4 million, as compared to a net loss of $0.34 million reported for the three month period ended 30 June 2014.

Net profit attributable to equity holders of the Bank amounted to $5.66 million for the first half of 2015, as compared to the net loss of $0.11 million reported for the same period last year. Net profit attributable to equity holders of the Bank for the three month period ended 30 June 2015 amounted to $3 million, as compared to the net loss of $0.61 million reported for the three month period ended 30 June 2014.

“On behalf of the Ithmaar Bank Board of Directors, I am pleased to announce that the Bank continues to report increased profits for 2015,” said Ithmaar Bank chairman Prince Amr Al Faisal.

“The half-year financial results for 2015 show business growth resulting into significant improvement in net profit as compared to the same period last year. This is also explained by turnaround from a net loss of $0.34 million reported for the three-month period ended 30 June 2014, to a net profit of $5.4 million for the same period this year,” he said.

“The bank’s operating income has increased by 37.2 per cent in 2015 to $157.6 million from the $114.88 million reported for the same period last year,” said HRH Prince Amr.  “This increase is due to overall revenue growth which has resulted in the net income, before provisions for impairment and overseas taxation for the period increasing 330.7 per cent to $61.65 million,” he said.

“Total expenses for the first half of 2015 are 4.6 per cent lower, at $95.95 million, than the total expenses reported for the same period in 2014 despite business growth,” said Prince Amr. “This is a result of cost control measures which started in 2014.”

“I am also pleased to report that the balance sheet continues to grow,” said Prince Amr.

“Total assets increasing to $8.6 billion as at 30 June 2015, an increase of 9.4 per cent compared to $7.86 billion as at 31 December 2014, and 12.6 per cent compared to $7.63 billion as at 30 June 2014,” he added.

Ithmaar Bank chief executive officer, Ahmed Abdul Rahim, said the 2015 half-yearly financial showed growing customer confidence in the bank.

“The equity of unrestricted investment account holders has increased to $2.18 billion as at 30 June 2015, an increase of 8.8 per cent compared to $2 billion as at 31 December 2014, and of 10.8 per cent compared to $1.97 billion as at 30 June 2014,” said Abdul Rahim.

“Customer current accounts have also increased to $1.49 billion as at 30 June 2015, an increase of 8.6 per cent compared to $1.37 billion as at 31 December 2014. Liquid assets form 12.5 per cent of the Bank’s total assets as at 30 June 2015, increased from 11.3 per cent as at 31 December 2014,” he said.

“The financial results for 2015 are very encouraging and demonstrate our ongoing success as we work towards realising our shared vision of becoming one of the region’s premier Islamic retail bank.

“This success is due, in a large part, to listening closely to our customers and working to exceed their expectations by introducing new products and services while improving customer satisfaction,” he added.

Ithmaar Bank recently introduced a new pre-paid electronic card which allows customers to top-up their cards in real time and make their online shopping experience safer and more convenient than ever before.

Ithmaar Bank also recently earned a prestigious Straight Through Processing Excellence Award from Standard Chartered Bank in recognition of Ithmaar Bank’s 94.5 per cent efficiency in the execution of electronic payments during 2014.

Ithmaar had, earlier this year introduced Bahrain's most rewarding Credit Cards loyalty programme "Ithmaar Rewards", a new rewards programme for its MasterCard credit card holders. – TradeArabia News Service