The announcement, by Ithmaar Bank Chairman His Royal Highness Prince Amr Al Faisal, followed the review and approval, by the Board of Directors, of the Bank’s consolidated financial results for the six-month ended 30 June 2013.
“On behalf of the Ithmaar Bank Board of Directors, I am pleased to announce Ithmaar Bank’s profitability before provision for impairment and taxation,” HRH Prince Amr, said.
“I am also pleased to report that operating income continues to be stable, at BD36.8million, despite a significant compression of margins in overseas subsidiary due to 300 basis points cuts in benchmark profit rates,” he said.
The results show a net loss of BD3.4million for the three month period ended 30 June 2013 as compared to a net profit of BD753thousand for the same period last year.
“Cost control continues to be our focus HRH Prince Amr, said.
“During the first six months of 2013, total expenses were reduced by about 4.5 percent – an achievement that is made all the more impressive considering our continuously expanding retail banking network,” he said.
“The margin compression in overseas subsidiary has impacted the revenues and funding cost and consequently the net margins,” HRH Prince Amr, added.
“The Bank has reported a profit of BD838thousand before provision for impairment and taxation for the six month period ended 30 June 2013 as compared to BD2.7million for the comparative period last year. The balance sheet marginally increased but the core business continues to grow and the equity of unrestricted investment account holders increased, by 13.64percent, to BD679.2million in the first six months of 2013, compared to BD597.7million as at 30 June 2012; and Murabaha and other financings, increasing by 1.6percent to BD1.19billion in the first six months of 2013 as compared to BD1.17billion as at 30 June 2012,” he said.
“Liquid assets, comprising cash, balances and commodity placements with banks, financial and other institutions, now represent about 13percent of the balance sheet, this liquidity excludes investment by overseas subsidiary in local treasury bills and other sovereign instruments resulting in increased investment securities over the comparative period,” HRH Prince Amr, said.
“As part of its strategy of retail focus, Ithmaar has completed the voluntary surrender of Faisal Private Bank’s (Switzerland) banking and securities dealer license on 30 June 2013 and the renamed entity, Faisal Private Bureau (Switzerland), will be responsible for managing existing wealth and asset management business,” he said.
Ithmaar Bank Chief Executive Officer and Member of the Board, Mohammed Bucheerei, said the Bank continues steadfastly on its Board-approved retail business focus with the objective of becoming the region’s premier Islamic retail bank.
“The Bank continues to significantly enhance its products and services and has recently launched Premier banking (targeting HNWI) and 7esabi (targeting youth),” he said.
“Ithmaar is firmly committed to becoming the region’s premier Islamic retail and commercial bank as we continue to increase our focus on core banking activities while working towards restructuring our investment portfolio,” added Bucheerei. “Ithmaar now boasts one of the largest retail banking networks in Bahrain with 17 full service branches and 43 Automated Teller Machines (ATMs) in 26 strategic locations around the Kingdom. We will continue to work towards further developing our core retail business in the year ahead with the commissioning of additional new branches as well as the introduction of new products and services,” he said.