Ithmaar Holding (formerly Ithmaar Bank) has reported a net loss of $1.59 million for the six-month period ended June 30, compared to a net profit of $11.96 million for the same period last year.

Net loss attributable to equity holders for the six-month period ended June 30 was $9.25 million, compared to a net profit of $4.4 million reported for the same period last year. This included a net loss of $7.38 million for the three-month period ended June 30, compared to a net profit of $7.14 million for the same period last year.

Net loss attributable to equity holders for the three-month period ended June 30 was $9.82 million, compared to a net profit of $3.19 million reported for the same period last year.

The announcement, by Ithmaar Chairman His Royal Highness, follows the review and approval, by the Board of Directors, of Ithmaar’s consolidated financial results for the six-month period ended 30 June 2017.

“On behalf of the Board of Directors, I am pleased to announce that Ithmaar’s half-year financial results show that the core business continued to grow in 2017,” said HRH Prince Amr Al Faisal, Ithmaar chairman.

“Although net income, before provision for impairment and overseas taxation, dropped to $29.83 million for the six-month period ended 30 June 2017, from $36.67 million for the same period last year, this loss was mainly due to unrealized foreign exchange losses of $12.5 million, overall income from our core business grew significantly during the same period.

“This is evident from the increased income from murabaha and other financing which grew by 7.7 per cent to $72.08 million for the six-month period ended 30 June 2017, compared to $66.9 million for the same period last year, as well as the higher share on income from unrestricted investment accounts as a Mudarib which grew 60.8 per cent during the first half of this year to $34.39 million, compared to $21.38 million for the same period last year. This is, mainly, a result of the 75 new Islamic retail branches that were opened by Faysal Bank Limited in Pakistan last year,” he said.

Ithmaar chief executive officer Ahmed Abdul Rahim said the focus remains firmly on growing the core retail banking business.

“I am pleased to report that the balance sheet is stable and continues to grow,” said Abdul Rahim. “Total assets stood at $8.72 billion as at 30 June 2017, a 4.5 per cent increase compared to $8.34 billion as at 31 December 2016, and a 2.9 per cent increase compared to $8.47 billion as at 30 June 2016.”

 “Customer current accounts also increased to $1.73 billion as at 30 June 2017, a 9.6 per cent increase compared to $1.58 billion as at 31 December 2016, and a 15.5 per cent increase compared to $1.5 billion as at 30 June 2016,” said Abdul Rahim.

“The equity of unrestricted investment accountholders, at $2.78 billion as at 30 June 2017, increased by 0.4 per cent compared to $2.77 billion as at 31 December 2016, and by a significant 7.2 per cent compared to $2.59 billion as 30 June 2016,” he added. – TradeArabia News Service