MANAMA: Ithmaar Holding BSC (formerly Ithmaar Bank BSC) (Ithmaar) reported a net profit of US$5.79 million for the three-month period ended 31 March 2017, a 20 percent increase compared to the net profit of US$4.83 million reported for the same period last year. Net profit attributable to equity holders for the three-month period ended 31 March 2017 was US$0.58 million, a 52.7 percent decrease compared to a net profit of US$1.22 million reported for the same period last year.
The announcement, by Ithmaar Chairman His Royal Highness Prince Amr Al Faisal, follows the review and approval, by the Board of Directors, of Ithmaar’s consolidated financial results for the three-month period ended 31 March 2017.
“On behalf of the Board of Directors, I am pleased to announce that Ithmaar continues to show stable, consistent growth in its core retail banking business,” said HRH Prince Amr. “Net income, before provision for impairments and overseas taxation, increased 27.7 percent to US$20.25 million for the three-month period ended 31 March 2017, compared to US$15.86 million reported for the same period last year. This increase is mainly due to an increase in income from core retail banking business, with income from murabaha and other financing increasing 14.4 percent to US$42.66 million for the three-month period ended 31 March 2017, compared to US$37.29 million for the same period last year,” he said.
Ithmaar Group Chief Executive Officer, Ahmed Abdul Rahim, said that following the successful completion of the reorganisation at the beginning of the year and the formal commencement of the new group structure, Ithmaar remains firmly focused on growing its core retail banking business.
“I am pleased to report that the balance sheet continues to be stable,” said Abdul Rahim. “Total assets stood at US$8.30 billion as at 31 March 2017 compared with US$8.34 billion as at 31 December 2016, but a significant 6.7 percent increase from US$7.78 billion as at 31 March 2016. Total financings remained stable at US$3.93 billion at 31 March 2017 and 31 December 2016, but increased by 5.4 percent from US$3.73 billion at 31 March 2016, a testimony to growth in our core businesses. Similarly, investment securities increased by 7.2 percent from US$1.87 billion at 31 December 2016 to US$2.01 billion at 31 March 2017, and increased by 31 percent from US$1.53 billion at 31 March 2016,” he said.
“Customer current accounts and due to investors increased by 1.5 percent from US$3.48 billion at 31 December 2016 to US$3.54 billion at 31 March 2017, and increased significantly by 9.8 percent from US$3.22 billion at 31 March 2016,” said Abdul Rahim. “The equity of unrestricted investment account holders, at US$2.65 billion as at 31 March 2017, decreased by 4.2 percent compared to US$2.77 billion as at 31 December 2016, but increased by 5.6 percent compared to US$2.51 billion as 31 March 2016,” he said.
“Faysal Bank Limited (Pakistan), subsidiary of Ithmaar Bank B.S.C.(C) continues to report growth in business and will be adding 50 new branches throughout Pakistan as part of its branch expansion plan in 2017 to exceed 400 branches,” said Abdul Rahim
The new structure, which was proposed by the Bank’s Board of Directors and approved by shareholders in March 2016, resulted in the conversion of Ithmaar Bank B.S.C into Ithmaar Holding B.S.C. (Ithmaar Holding), which is licensed and regulated by the Central Bank of Bahrain (CBB) and is listed on the Bahrain Bourse and Boursa Kuwait. Ithmaar Holding retains 100 percent ownership of all assets formerly owned by Ithmaar Bank B.S.C. through its two wholly-owned subsidiaries Ithmaar Bank B.S.C (closed) (Ithmaar Bank), an Islamic retail bank subsidiary, which holds the core retail banking business, and IB Capital B.S.C. (closed) (IB Capital), an investment subsidiary, which holds investments and other non-core assets. The two subsidiaries are licensed and regulated by the CBB.
Earlier this year, shareholders approved a proposal to list Ithmaar Holding on additional stock exchanges in the region. The proposal, which was presented by a shareholder as an additional agenda item at the Annual General Meeting (AGM) in March 2017 was approved unopposed by the shareholders who welcomed the initiative.
