Ithmaar Bank’s board members addressing shareholders
Ithmaar approves plans for new group structure
MANAMA, March 29, 2016
The shareholders of Ithmaar Bank, a Bahrain-based Islamic retail bank, have approved plans for a new group structure designed to further develop the growth achieved in the core retail banking business, the strategic focus of the bank.
The plans, which were proposed by the board of directors, and are subject to regulatory approvals, include the creation of a new holding company that will be listed on the Bahrain Bourse and the Kuwait Stock Exchange and licensed and regulated by the Central Bank of Bahrain (CBB), said a statement.
The new holding company will retain 100 per cent ownership of all assets presently owned by Ithmaar Bank.
These assets will be allocated into two wholly-owned subsidiaries, an Islamic retail bank subsidiary which will hold the core retail banking business, and an investment subsidiary which will hold the investment assets. These two subsidiaries will also be licensed and regulated by the CBB.
Prince Amr Al Faisal, chairman, said: “On behalf of the board of directors, I am pleased to announce that the strategic decisions we took early in 2014, which were designed to significantly transform the Group’s operations, are continuing to deliver positive results, and the new group structure is the next key step in this transformation.
“This new structure is designed to assist in realising our long-term strategy for growth by providing greater insight into the strength of our core retail banking operations and further facilitating the management of the Group’s investment assets.
“This new group structure follows extensive internal review and discussions, and is driven by our commitment to ensuring we are well positioned to benefit from new opportunities in the current market.
“The new structure will help lower the risk profile of the new banking entity and enhance shareholder value by showing the growth and improved performance achieved in the core business. In the current structure, this growth is being adversely impacted by investment valuations and impairment provisions.” - TradeArabia News Service
