SEEF: The 2015 will be a year of turnaround for Ithmaar Bank, thanks to the strong performance of the bank’s core business activities, according to a senior official at the bank.
“The Bank’s 2014 financial performance indicates that efforts to turn the group around are clearly paying off, as evident from the growth in the operating profits of 14 percent,” Ithmaar Bank Chief Executive Officer, Ahmed Abdul Rahim, said.
“In the backdrop of strong results, the bank is currently cleaning up its balance sheet and the year-end there are chances to swing back into profitability,” Ithmaar CEO on sidelines of the bank’s AGM told reporters, adding that the bank was not looking for mergers and acquisitions for the time being.
“We will continue to focus on business lines in Bahrain to further consolidate the business,” he said, adding that the market has a lot of potential of growth. Talking about reduction in bank’s non-performing loans (NPLs) he said those were being reduced with each passing day. “We are process of cleaning up balance sheet and this process is ongoing,” he said.
“Ithmaar bank will also seize opportunities by investing in the corporate segment in addition to further bolstering out credit card business,” he said.
He said the new rules about the slab on the bank’s executives’ bonuses introduced by the CBB were very well received. Initially, he said, executives have had some reservations but as things further crystalizes the CBB move was welcomed by the majority of the executives simply reward should be linked to the performance.
“This growth is a result of the Bank’s commitment to listening closely to its customers, and working to realise their aspirations by continuously improving its products and services,” said Abdul Rahim. “In 2014, for example, Ithmaar Bank introduced a full suite of new credit card solutions from MasterCard, substantially enhanced its popular prize-based savings account, Thimaar, and created new home, personal and auto finance products designed specifically to meet customer requirements,” he said.
Ithmaar Bank operates one of the largest retail banking networks in Bahrain with 46 ATMs and 17 full-service branches, while our key subsidiary, FBL, with its 274 branches across all cities in Pakistan, is amongst the top 10 banks in Pakistan.
“In 2014, Ithmaar Bank also signed a partnership agreement with Bahrain’s Ministry of Housing and Eskan Bank to help overcome the Kingdom’s housing challenges,” Abdul Rahim, said. “Under the agreement, Bahraini citizens will be offered government-subsidised financing through Ithmaar Bank to help them buy their first homes as part of a national scheme designed to help overcome the Kingdom’s housing challenges. The Social Housing Financing Scheme allows eligible citizens to finance their first homes through Ithmaar Bank by paying 25 percent of their monthly income towards the property’s monthly instalment with the rest being paid for by the Ministry of Housing through Eskan Bank,” he said.
“These initiatives helped drive the continued growth in the Bank’s Bahrain retail banking business in 2014,” said Abdul Rahim. “Ithmaar Bank’s financing business in Bahrain, for example, increased by 23 percent, from US$745 million at the end of 2013, to US$914 million at the end of 2014. This growth in 2014 was driven mainly by Home Financing which increased by 53 percent and Personal Financing which increased by 21 percent. Similarly, total customer current accounts, savings accounts, Thimaar and URIA deposits, increased by 11 percent in 2014, from US$1.38 billion at the end of 2013, to US$1.54 billion at the end of 2014,” he said.