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Chairman Prince Amr Al Faisal

Ithmaar retail growth up, plans new holding firm

MANAMA, February 29, 2016

Ithmaar Bank, a Bahrain-based Islamic retail bank, has reported an increase in total income and operating income from its core retail banking operations last year.
 
The improved performance was impacted by recognition of certain investment related impairment provisions, said a statement.
 
Its net income before provisions for impairment and overseas taxation increased 169.2 per cent including a 18 per cent increase in operating income. 
 
Overall, the bank recorded a net loss of $46.4 million in 2015, as compared to a net loss of $8.8 million in 2014. 
 
The bank has also posted a net loss for the quarter ended December 31 of $57.8 million, compared to a net loss of $13.7 million for the same period last year. 
 
Meanwhile, the bank is finalising plans, subject to shareholder and regulatory approvals, to create a new holding company which will be listed on Bahrain Bourse and Kuwait Stock Exchange. 
 
The new holding company will retain 100 per cent ownership of all assets presently owned by Ithmaar Bank. 
 
These assets will be divided into two wholly owned subsidiaries, the Islamic retail bank subsidiary will hold the core retail banking business and the investment assets will be held by an investment subsidiary. 
 
The holding company and these two subsidiaries will be licensed and regulated by the Central Bank of Bahrain (CBB). 
 
The proposed new structure is designed to assist the bank in delivering its long term strategy for growth by making it easier for the group to manage its investment assets and provide shareholders and analysts with greater insight into the strength of the group’s core retail banking operations and the performance of its investment assets.
 
Prince Amr Al Faisal, chairman, said: “On behalf of the board of directors, I am pleased to report that Ithmaar Bank continues to report growing, sustainable income from its core retail banking operations. 
 
“However, the recent significant decline in oil prices and the resultant new economic challenges in the region have impacted investment valuations, and consequently impacted Ithmaar Bank’s financial results.
 
“To address this, the bank has taken prudent investment impairment provisions, and the net loss for the year is due largely to the significantly higher provisions for impairment, which increased by $68.9 million in 2015.” - TradeArabia News service



Tags: Bank | Ithmaar | income | loss |

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