MANAMA Ithmaar Bank, a Bahrain-based Islamic retail bank, reported a net profit of US$16.73 million for the nine-month period ended 30 September 2016, compared to the US$11.39 million net profit reported for the same period last year. Net profit attributable to equity holders of the Bank for the nine-month period ended 30 September 2016 was US$6.50 million, compared to the US$2.11 million profit reported for the same period last year.
Net profit for the three-month period ended 30 September 2016 amounted to US$4.77 million compared to the net loss of US$1.65 million reported for the same period last year. Net profit attributable to equity holders of the Bank for the three-month period ended 30 September 2016 was US$2.10 million compared to the US$3.55 million net loss reported for the same period last year.
The announcement, by Ithmaar Bank Chairman His Royal Highness Prince Amr Al Faisal, follows the review and approval, by the Board of Directors, of the Bank’s consolidated financial results for the nine-month period ended 30 September 2016.
“On behalf of the Board of Directors, I am pleased to announce that Ithmaar Bank continues to report profits, that the Bank’s core retail business continues to perform well, and that Bank’s net income before overseas taxation continues to increase,” said HRH Prince Amr. “Ithmaar Bank’s continued focus on growing its core retail banking business is clearly delivering results. The financial results of the nine-month period ended September 2016 show that the Bank’s net income before overseas taxation grew to US$36.98 million, an increase of 5.9 percent compared to the US$34.92 million reported for the same period last year. The Bank’s net income before overseas taxation for the three-month period ended 30 September 2016 was US$9.42 million, an increase of 187.7 percent compared to US$3.27 million reported for the same period last year,” he said.
“I am also pleased to report that total expenses for the nine-month period September 2016 are under control and amounted to US$143.17 million, a marginal increase of 1.8 percent from the total expenses of US$140.59 million reported for the same period last year,” said HRH Prince Amr. “This is despite the continuous expansion of Ithmaar Bank’s retail banking operations both in Bahrain, where we added a new branch in Galali earlier this year, and in Pakistan, where we added 43 new branches to date,” he said.
Ithmaar Bank Chief Executive Officer, Ahmed Abdul Rahim, said the financial results demonstrate that the Bank’s efforts to grow its core retail banking business were paying off.
“I am pleased to report that the balance sheet continues to be stable, and that our core business as well as our customer deposits continue to grow,” said Abdul Rahim. “This is evident from the equity of unrestricted investment account holders growing to US$2.45 billion as at 30 September 2016, an 11.6 percent increase compared to US$2.19 billion as at 30 September 2015, and an 11.5 percent increase compared to US$2.19 billion as at 31 December 2015,” he said.
“This increase reflects customer confidence in the Bank, and is a further evidence that the Bank’s efforts to grow continuously closer to its customers are paying off,” said Abdul Rahim. “Current accounts and due to investors, for example, grew to US$3.59 billion as at 30 September 2016, a 7.6 percent increase compared to US$3.34 billion as at 30 September 2015, and a 6.2 percent increase compared to US$3.39 billion as at 31 December 2015. Liquid assets now represent 12.7 percent of total assets compared to 10.6 percent as at 31 December 2015,” he said.
Earlier this year, Ithmaar Bank inaugurated its Qalali branch, the Bank’s fourth full-service branch in Muharraq and its eighteenth in Bahrain. Ithmaar Bank this year also installed two new Automated Teller Machines (ATMs) in Hamad Town, in response to customer demands.
In line with its commitment to continuously improve its customer service offerings, Ithmaar Bank also conduced various process-reengineering exercises. In line with this same commitment, Ithmaar Bank also offered its credit card holders the chance to win prizes worth over US$75,000 as part of the Bank’s unique credit card offer. Ithmaar Bank recently also signed a Memorandum of Understating (MoU) with Eskan Bank to provide government-subsided financing for the Danaat Al Riffa development.
Earlier this year, at the Bank’s Extraordinary General Meeting (EGM), shareholders approved plans for a new group structure designed to further develop the growth achieved in the core retail banking business and the strategic focus of the Bank.
The plans involve the creation of a new holding company that will be listed on Bahrain Bourse and Boursa Kuwait and licensed and regulated by the Central Bank of Bahrain (CBB). The new holding company will retain 100 percent 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 asset management subsidiary which will hold the investment assets. These two subsidiaries will also be licensed and regulated by the Central Bank of Bahrain. The new group structure will further consolidate Ithmaar Bank’s position as a strong retail-focussed premier Islamic retail bank under the Ithmaar brand, better allowing the Bank to take advantage of new growth opportunities, and help to generate greater value to its shareholders.
The Bank is now working with regulators towards finalising necessary legal and other requirements ahead of anticipated implementation later this year. Ithmaar express its sincere thanks to the Central Bank of Bahrain and the Ministry of Industry, Commerce and Tourism for their steadfast support and guidance on the implementation of the Reorganization Plan.
