Ithmaar Holding & Ithmaar Bank report 2018 financial results

Ithmaar Holding and its wholly-owned subsidiary, Ithmaar Bank, report 2018 financial results

  • Ithmaar Holding’s wholly-owned subsidiary, IB Capital, acquired an additional stake in Solidarity Group Holding, and becomes a subsidiary of IB Capital
  • As part of its Digital Strategy, Ithmaar Bank completed a major upgrade during 2018 to its IT infrastructure and systems

MANAMA, BAHRAIN – 13 February 2019 – Ithmaar Holding B.S.C., a Bahrain-based financial institution, and its wholly-owned subsidiary, Ithmaar Bank B.S.C. (closed), a Bahrain-based Islamic retail bank, both reported profits as they each announced their financial results for 2018.

The announcement by the Ithmaar Holding Chairman His Royal Highness Prince Amr Al Faisal, who is also the Ithmaar Bank Chairman, follows the review and approval of both Board of Directors of the consolidated financial results for the year ended 31 December 2018.

Ithmaar Holding reported a net profit of US$10.06 million for the year ended 31 December 2018, as compared to a net loss of US$72.40 million for 2017. This included a net loss attributable to equity holders for the year ended 31 December 2018 of US$23.98 million, as compared to the US$84.71 million net loss reported for the same period in 2017. EPS for the year has improved to negative US Cents 0.82 compared from negative US Cents 2.91 for the same period in 2017.

The results included a net loss of US$1.28 million for the three-month period ended 31 December 2018, as compared to a net loss of US$56.2 million for 2017. Net loss attributable to equity holders for the three-month period ended 31 December 2018 was US$26.71 million, a decrease of 53.7 percent as compared to a net loss of US$57.67 million reported for the same period in 2017. EPS for the three-month period ended 31 December 2018 decreased by US Cents 0.92 compared to negative US Cents 1.98 for the same period in 2017.

Also in December 2018, Ithmaar Holding’s other wholly-owned subsidiary, IB Capital, acquired,  an additional stake in Solidarity Group Holding, one of the largest Takaful Group companies in Bahrain. As a result, Solidarity Group Holding became a subsidiary of IB Capital. During December 2018, Dilmunia Development Fund I L.P, a fund which is managed by Ithmaar’s wholly-owned subsidiary, Ithmaar Bank, became subsidiary of Ithmaar Bank after the Bank’s shareholding in the company increased to more than 50 percent.

“On behalf of the Ithmaar Holding Board of Directors, I am pleased to announce that, despite increasingly challenging market conditions, the Group is continuing its planned transformation in 2018 and concluded the year with remarkable achievements,” said HRH Prince Amr. “These included improved financial performance, as well as the realisation of key growth initiatives,” he said.

“The 2018 results show that net income before provision for impairment and overseas taxation for the year ended 31 December 2018 increased to US$43.42 million, a 96.8 percent increase from the US$22.10 million reported for the same period last year,” said HRH Prince Amr. This was mainly due to higher share of profit after tax from associates resulting from reclassification from held-for-sale to associate during the period,” he said.

“As a result, our operating income for the year ended 31 December 2018 increased to US$259.82 million, a 12.7 percent increase from the US$230.56 million reported for 2017. Operating income for the three-month period ended 31 December 2018 was US$48.34 million, a 2.3 percent decrease from the US$49.48 million reported for the same period in 2017,” said HRH Prince Amr.

“Ithmaar’s balance sheet decreased marginally by 1.4% with total assets at US$8.49 billion as at 31 December 2018, compared to US$8.61 billion as at 31 December 2017,” said HRH Prince Amr. Total owners’ equity stood at US$116.36 million as at 31 December 2018, a 67.3 percent decrease compared to US$355.33 million as 31 December 2017, mainly due to the Accounting standard, FAS 30 impact of previous year recognized in equity and the foreign exchange impact of devaluation of Pak rupee during the year recognized in equity,” he said.

“On behalf of both Boards of Directors, I take this opportunity to express our sincere thanks and appreciation to our shareholders for their confidence, and to the relevant regulators and other authorities for their guidance and support,” said HRH Prince Amr. “In particular, we are grateful to the Central Bank of Bahrain, to the Bahrain Ministry of Industry, Commerce and Tourism, the Bahrain Bourse, Boursa Kuwait and the Dubai Financial Market for their continuous guidance and support,” he said.

“I am pleased to inform you that as part of its Digital Strategy, Ithmaar Bank completed a major upgrade during 2018 to its IT infrastructure and systems. The upgrade, which was implemented to help support business growth, improve operational efficiency, improve internal controls and enhance customer experience, included a major project of upgrading the Bank’s core banking system and implementation of new eBanking system. The new system provides a strong foundation to support growth, allowing for the flexibility of quickly launching new products and services with focus on customer centricity,” said HRH Prince Amr.

Ithmaar Holding Chief Executive Officer, Ahmed Abdul Rahim, who is also the Ithmaar Bank Chief Executive Officer, said that performance of both institutions against the challenging market conditions of 2018 further reconfirm that sustained efforts to turn the Group around are indeed paying off.

“Ithmaar Bank’s financial results show a net profit of BD14.14 million for the year ended 31 December 2018, an increase of 126.7 percent compared to the net profit of BD6.24 million reported in 2017,” said Abdul Rahim. “Net profit attributable to equity holders for the year ended 31 December 2018 was BD1.41 million, a decrease of 10.9 percent compared to the net profit of BD1.58 million reported in 2017,” he said.

“The results included a net profit of BD9.38 million of the three-month period ended 31 December 2018, compared to a net loss of BD0.44 million reported in 2017,” said Abdul Rahim. “Net loss attributable to equity holders for the three-month period ended remains unchanged at $0.15 million compared to same period previous year,” he said.

“Net income before provision for impairment and overseas taxation for the year ended 31 December 2018 was BD13.70 million, a 28 percent decrease compared to the BD19.03 million reported for 2017,” said Abdul Rahim. “Total income remained stable in 2018, with the Bank reporting BD151.7 million for the year ended 31 December 2018,” he said.

“Ithmaar Bank’s balance sheet decreased marginally by 3.5% with total assets at BD3.13 billion as at 31 December 2018, compared to BD3.24 billion as at 31 December 2017,” said Abdul Rahim. “Meanwhile, due to market conditions, the equity of unrestricted investment account holders stood at BD1 billion as at 31 December 2018, a decrease of 6.6% as compared to BD1.06 billion as at 31 December 2017. Total owners’ equity stood at BD85.39 million as at 31 December 2018, a 44.8 percent decrease compared to BD154.60 million as 31 December 2017, mainly due to the Accounting standard, FAS 30 impact of previous year recognized in equity and the foreign exchange impact of devaluation of Pak rupee during the year recognized in equity,” he said.

“I am also delighted to inform you that Ithmaar Bank’s retail banking subsidiary in Pakistan, Faysal Bank Limited, has maintained growth momentum and the Bank’s footprint now extends to 455 branches in more than 100 cities across Pakistan, after having added 50 branches during 2018. The Bank aims to have expanded its retail banking network by 100 during 2019 to reach 555 branches by the end of 2019,” he said.

Early in 2018, the Bank launched the Ithmaar eQ app, which is a smartphone electronic queuing app designed to significantly reduce and potentially even eliminate customer waiting time altogether. The Ithmaar eQ app allows customers to directly book appointments or issue virtual eTickets for the nearest or most convenient branch, timings and directions, and notifies customers when their turn approaches. The app also provides significant MIS on customer behaviour. Ithmaar Bank operates one of the largest retail banking networks in Bahrain with 16 branches and 45 ATMs in strategic locations around the Kingdom.

Later in the year, Ithmaar Bank announced plans to launch the region’s first biometric payment network. The Bahrain-created solution by Eazy Financial Services will provide consumers with a safer, more convenient and more secure way to bank, and will bring a revolutionary improvement in customers’ experience with banks. When implemented, Ithmaar Bank customers will no longer be required to use their bank cards at Ithmaar ATMs. Instead, they will simply be able to use their fingerprint along with their PIN to process financial transactions. This provides a simpler, more secure way to process financial transactions than ever before.

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Ithmaar Holding report profit for the third quarter of 2018

 

MANAMA, BAHRAIN – 13 November 2018 – Ithmaar Holding B.S.C., a Bahrain-based financial institution, and its wholly-owned subsidiary, Ithmaar Bank B.S.C. (closed), a Bahrain-based Islamic retail bank, each announced their financial results for the third quarter of 2018 with both reporting profits.

The announcement by the Ithmaar Holding Chairman His Royal Highness Prince Amr Al Faisal, who is also the Ithmaar Bank Chairman, follows the review and approval of both Board of Directors of the consolidated financial results for the nine-month period ended 30 September 2018.

Ithmaar Holding reported a net profit of US$11.34 million for the nine-month period ended 30 September 2018, as compared to a net loss of US$16.25 million for the same period in 2017. Net profit attributable to equity holders for the nine-month period ended 30 September 2018 was US$2.73 million, as compared to the US$27.04 million net loss reported for the same period in 2017. The increase net profit is mainly due to higher impairment provision in the previous period resulting from classification of an associate to held-for-sale. This has been reclassified as an associate during 2018. Earnings per share (EPS) for the nine month period increased to US Cents 0.09 compared to negative US Cents 0.93 for the same period in 2017.

The results included a net profit of US$0.51 million for the three-month period ended 30 September 2018, as compared to a net loss of US$14.66 million for the same period in 2017, and a net loss of US$2.12 million attributable to equity holders for the three-month period ended 30 September 2018, as compared to a net loss of US$17.80 million reported for the same period in 2017. EPS for the three-month period increased to negative US Cents 0.07 compared to negative US Cents 0.61 for the same period in 2017.

“On behalf of the Ithmaar Holding Board of Directors, I am pleased to announce that our 2018 results continue to highlight the turnaround in our financial performance,” said HRH Prince Amr. “This achievement, which is made all the more significant by the challenging market conditions that characterised much of 2018, is testimony to the strength of the Group’s core retail banking business,” he said.

“The 2018 results show that total income for the nine-month period ended 30 September 2018 increased to US$334.52 million, a 10.6 percent increase from the US$302.34 million reported for the same period last year. This included total income of US$109.09 million for the three-month period ended 30 September 2018, a 15.7 percent increase compared to US$94.27 million reported for the same period last year. This was mainly due to higher share of profit after tax from associates resulting from reclassification from held-for-sale to associate during the period,” said HRH Prince Amr. “As a result, our operating income for the nine-month period ended 30 September 2018 increased to US$211.47 million, a 16.8 percent increase from the US$181.08 million reported for the same period last year. This included an operating income of US$62.79 million for the three-month period ended 30 September 2018, a 16.6 percent increase compared to US$53.87 million for the same period last year,” said HRH Prince Amr.

Ithmaar Holding Chief Executive Officer, Ahmed Abdul Rahim, who is also the Ithmaar Bank Chief Executive Officer, said the financial performance of both institutions demonstrate that efforts to turn the Group around are paying off.

“Ithmaar Holding’s balance sheet remained stable with total assets at US$7.99 billion as at 30 September 2018, compared to US$8.61 billion as at 31 December 2017,” said Abdul Rahim. “Total owners’ equity stood at US$187.29 million as at 30 September 2018, a 47.3% decrease compared to US$355.33 million as 31 December 2017, and the decrease is mainly due to the early adoption of the new Financial Accounting Standard (FAS 30) “Impairment, credit losses and onerous commitments” that was issued by the Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI),” he said.

“Meanwhile, Ithmaar Bank’s financial results show a net profit of BD4.76 million for the nine-month period ended 30 September 2018, a decrease of 17.8 percent compared to a net profit of BD5.79 million for the same period in 2017,” said Abdul Rahim. “Net profit attributable to equity holders for the nine-month period ended 30 September 2018 was BD1.56 million, a decrease of 9.9 percent compared to the BD1.73 million net profit reported for the same period in 2017,” he said.

“The results included a net profit of BD1.15 million of the three-month period ended 30 September 2018, a decrease of 18.3 percent compared to a net profit of BD1.41 million for the same period in 2017,” said Abdul Rahim. “Net profit attributable to equity holders for the three-month period ended 30 September 2018 was BD0.19 million, a decrease of 0.5 percent compared to the BD0.19 million profit reported for the same period in 2017,” he said.

“Core income continued to grow in 2018, with Group’s share of income from unrestricted investment accounts increasing BD20.86 million for the nine-month period ended 30 September 2018, a 6.6 percent increase from the BD19.56 million reported for the same period last year. Income from murabaha and other financings also increased to BD50.11 million, a 7.9 percent increase from the BD46.45 million reported for the same period last year,” said Abdul Rahim. “These significant increases reflect growing customer confidence in the Bank,” he said.

“The Bank’s financial results include an operating income of BD62.79 million for the nine-month period ended 30 September 2018, a 4.7 percent decrease as compared to the BD65.87 million reported for the same period last year,” said Abdul Rahim. “This included an operating income of BD20.59 million for the three-month period ended 30 September 2018, a 2.4 percent increase compared to BD20.11 million reported for the same period last year,” he said.

“Ithmaar Bank’s balance sheet remained stable with total assets at BD3.02 billion as at 30 September 2018, compared to BD3.24 billion as at 31 December 2017,” said Abdul Rahim. “Meanwhile, despite market conditions, the equity of unrestricted investment account holders stood at BD1.01 billion as at 30 September 2018, as compared to BD1.06 billion as at 31 December 2017, and as compared to BD1.06 billion as at 30 September 2017. Total owners’ equity stood at BD96.14 million as at 30 September 2018, a 37.8 percent decrease compared to BD154.60 million as 31 December 2017, mainly due to the FAS 30 impact of previous period recognized in equity,” he said.

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Ithmaar Holding and its wholly-owned subsidiary, Ithmaar Bank, report half-year profits

MANAMA, BAHRAIN – 13 August2018 –Ithmaar Holding B.S.C., a Bahrain-based financial institution, and its wholly-owned subsidiary, Ithmaar Bank B.S.C. (closed), a Bahrain-based Islamic retail bank, each announced their financial results for the first half of 2018 with both reporting profits for the period.

The announcement by the Ithmaar Holding Chairman His Royal Highness Prince Amr Al Faisal, who is also the Ithmaar Bank Chairman, follows the review and approvalof both Board of Directors of the consolidated financial results for the six-month period ended 30 June 2018.

Ithmaar Holding reported a net profit of US$10.82million for the six-month period ended 30 June 2018, as compared to a net loss of US$1.59 million for the same period in 2017.  Net profit attributable to equity holders for the six-month period ended 30June 2018 was US$4.85million, ascompared to the US$9.25 million net loss reported for the same period in 2017.Earnings per share (EPS) for the six month period increased to US Cents 0.17 compared to negative US Cents 0.32 for the sameperiod in 2017.

The half-year results included a net profit of US$6.01 million for the three-month period ended 30 June 2018,  as compared to a net loss of US$7.38 million for the same period in 2017. Net profit attributable to equity holders for the three-month period ended 30June 2018 was US$3.20million, as compared to the US$9.82 million net loss reported for the same period in 2017. EPS for the three-month period increased to USD Cents 0.11 compared to negative US Cents 0.34 for the same period in 2017.

“On behalf of the Ithmaar Holding Board of Directors, I am pleased to announce that the 2018 half-year results show a turnaround in our financial performance,” said HRH Prince Amr. “Total income for the six-month period ended 30 June 2018increased to US$225.43 million, a8.3 percent increase from the US$208.07 million reported for the same period last year.This was mainly due to higher share of profit after tax from associates,” he said.

“As a result, our operating income for the six-month period ended 30 June 2018increased to US$148.68 million, a 16.9 percent increase from the US$127.21 million reported for the same period last year,” said HRH Prince Amr.

Ithmaar Holding Chief Executive Officer, Ahmed Abdul Rahim, who is also the Ithmaar Bank Chief Executive Officer, said the half-year result of both institutions reflect the strength of the Group’s core retail banking business.

“Ithmaar Holding’s total assets stood at US$8.62billion as at 30June 2018, compared to US$8.61 billion as at 31 December 2017,” said Abdul Rahim. “Total owners’ equity stood at US$185.19million as at 30June 2018, a 47.9percent reduction compared to US$355.33 million as 31 December 2017, mainly due tothe early adoption of the new Financial Accounting Standard (FAS) “Impairment, credit losses and onerous commitments” that was issued by the Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI),” he said.

“Also, Ithmaar Bank’s financial results show a net profit of BD3.61 million for the six-month period ended 30 June 2018,a decrease of 17.6 percent compared to a net profit of BD4.38 million for the same period in 2017,” said Abdul Rahim. “Net profit attributable to equity holders for the six-month period ended 30June 2018 was BD1.37 million, a decrease of 11.0 percent compared to the BD1.54 million net profit reported for the same period in 2017,” he said.

“The half-year results of Ithmaar Bank included a net profit of BD1.58 million of the three-month period ended 30 June 2018, an increase of 22.0 percent compared to a net profit of BD1.30 million for the same period in 2017,” said Abdul Rahim.  “Net profit attributable to equity holders for the three-month period ended 30June 2018 was BD0.54 million, an increase of 35.2 percent compared to the BD0.40 million profit reported for the same period in 2017. Although core income continued to grow during the period as evidenced by increase of 6.3% and 2.5% in income from murabaha and other financings and share of income from unrestricted investment accounts respectively, operating income was lower by 7.8 percent mainly because the2017 results include realised gains from the sale of certain investment assets by the Bank’s subsidiary in Pakistan, Faysal Bank Limited,” he said.

“Ithmaar Bank’s balance sheet remained stable with total assets at BD3.25 billion as at 30June 2018, compared to BD3.24 billion as at 31 December 2017,” said Abdul Rahim. “Core income continued to grow with total financings increasing by 3.8 percent to BD2.16 billion as at 30 June 2018 compared to BD2.08 billion as at 31 December 2017 and increase of 5.0 percent from BD2.06 billion as at 30 June 2017. Meanwhile, despite market conditions, the equity of unrestricted investment account holders stood at BD1.03 billion as at 30 June 2018, as compared to BD1.06 billion as at 31 December2017, and as compared to BD1.05 billion as at 30 June 2017.”

“Total owners’ equity stood at BD97.05million as at 30 June 2018, a 37.2 percent decrease  compared to BD154.60 million as 31 December 2017, mainly due to the FAS 30 impact of previous period recognized in equity,” he said.

Ithmaar Holding and its wholly-owned subsidiary, Ithmaar Bank, report first quarter profits

MANAMA, BAHRAIN – 14 May 2018 – Ithmaar Holding B.S.C., a Bahrain-based financial institution, and its wholly-owned subsidiary, Ithmaar Bank B.S.C. (closed), a Bahrain-based Islamic retail bank, each announced their financial results for the first quarter of 2018 with both reporting profits for the period.

The announcement by the Ithmaar Holding Chairman His Royal Highness Prince Amr Al Faisal, who is also the Ithmaar Bank Chairman, follows the review and approval of both Board of Directors of the consolidated financial results for the three-month period ended 31 March 2018.

The Ithmaar Holding reported a net profit of US$4.81 million for the three-month period ended 31 March 2018, a decrease of 16.9 percent compared to a net profit of US$5.79 million for the same period in 2017. Net profit attributable to equity holders for the three-month period ended 31 March 2018 was US$1.66 million, an increase of 187.8 percent compared to the US$0.58 million net profit reported for the same period in 2017. Earning per share (EPS) increased to US cents 0.06 compared to 0.02 for the three-month period ended 31 March 2017.

“On behalf of the Ithmaar Holding Board of Directors, I am pleased to announce that the financial results show that the unwavering focus on our core retail banking business continues to pay off,” said HRH Prince Amr. “Our total income for the three-month period ended 31 March 2018 increased to US$112.42 million, a 5.6 percent increase from the USS106.49 million reported for the same period last year, mainly due to income from investments. Consequently, our operating income for the three-month period ended 31 March 2018 increased to US$72.16 million, a 5.6 percent increase from the US$68.34 million reported for the same period last year ,” he said.

Ithmaar Holding Chief Executive Officer, Ahmed Abdul Rahim, who is also the Ithmaar Bank Chief Executive Officer, said the results of both the company and the Bank were encouraging and reconfirm that efforts to turn the Group around are paying off.

“Ithmaar Holding’s total assets stood at US$8.29 billion as at 31 March 2018, compared to US$8.61 billion as at 31 December 2017, and remaining stable compared to US$8.30 billion as at 31 March 2017,” said Abdul Rahim. “Total owners’ equity stood at US$233.48 million as at 31 March 2018, a 34 percent reduction compared to US$355.33 million as 31 December 2017, mainly due to early adoption of the new Financial Accounting Standard (FAS) “Impairment, credit losses and onerous commitments” that was issued by the Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI),” he said.

“I am pleased, also, to report that Ithmaar Bank’s financial results show a net profit of BD2.03 million for the three-month period ended 31 March 2018, compared to a net profit of BD3.08  million for the same period in 2017. Net profit attributable to equity holders for the three-month period ended 31 March 2018 was BD0.832 million, compared to the BD1.14 million net profit reported for the same period in 2017,” said Abdul Rahim. “Although core income continued to grow during the period, operating income was lower by 9.5 percent mainly because 2017 capital gains by the Bank’s subsidiary in Pakistan, Faysal Bank Limited, during the previous period,” he said.

“Ithmaar Bank’s total assets stood at BD3.11 billion as at 31 March 2018, compared to BD3.24 billion as at 31 December 2017 and are stable compared to BD3.11 billion as at 31 March 2017,” said Abdul Rahim. “Meanwhile, despite market conditions, the equity of unrestricted investment account holders stood at BD1.063 billion as at 31 March 2018, increasing 6.4 percent compared to BD0.999 billion as at 31 March 2017 but are stable compared to BD1.064 as at 31 December 2017. Total owners’ equity stood at BD101.2 million as at 31 March 2018, a 34.6 percent reduction compared to BD154.6 million as 31 December 2017, mainly due to the FAS 30 impact of previous period recognized in equity,” he said.

Ithmaar Holding hosts annual shareholder meeting

MANAMA, BAHRAIN – 26 March 2018 – Ithmaar Holding B.S.C. (formerly Ithmaar Bank BSC) [“Ithmaar”] [“the Group”] hosted today (ed note: 26/03/18) its Annual General Meeting (AGM) and the consolidated financial statements for 2017 were approved.
The meeting was chaired by Ithmaar Chairman, His Royal Highness Prince Amr Al Faisal, and attended by members of the Ithmaar Board of Directors, its executive management team and its Sharia Supervisory Board, as well as representatives from the Central Bank of Bahrain (CBB), the Ministry of Industry, Commerce and Tourism, the Bahrain Bourse, and statutory auditors PricewaterhouseCoopers.
Speaking to shareholders, HRH Prince Amr said Ithmaar Holding’s 2017 achievements are paving the way for the Group’s continued transformation, and set the stage for a return to sustainable profitability.
“We are pleased to announce that, with the new group structure fully implemented at the start of 2017, Ithmaar Holding’s efforts during the year were directed at taking important steps towards significantly transforming operations in line with the strategic decisions taken by shareholders in 2016,” said HRH Prince Amr. “One important initiative was the successful listing of Ithmaar Holding shares on the Dubai Financial Market on 29 January 2018. This additional listing, which added a new key market alongside our listing on the Bahrain Bourse and Boursa Kuwait, opens trading on Ithmaar Holding’s shares to new, exciting markets. This, in turn, creates new investment opportunities for investors in the GCC markets. Ithmaar Holding is traded, on all three stock exchanges, under the ticker ITHMR,” he said.
“Ithmaar Holding’s two wholly-owned subsidiaries, Ithmaar Bank and IB Capital, and their various subsidiaries, associates and other investments, also took important steps throughout 2017 to support the Group’s transformation,” said HRH Prince Amr. “Ithmaar Bank, for example, embarked on multiple strategic initiatives designed to bring about transformational change to the Bank. The initiatives, some of which are in the process of implementation, include upgrading the core banking system and enhancing the e-Banking offering to make the Bank more customer centric as it embarks on its next growth phase, as well as introducing a new consolidation, budgeting and planning solution. A new application has been implemented to facilitate compliance with the new FAS 30 accounting and regulatory requirements,” he said.
Ithmaar Holding Chief Executive Officer, Ahmed Abdul Rahim, said the Group is taking important steps in the right direction, including a greater focus on its core retail banking business. This has been evident in the positive results achieved by Ithmaar Bank during 2017.
“In 2017, Ithmaar Bank’s efforts to become closer to its customers earned the Bank local, regional and international awards as recognition both for its success as an Islamic retail bank
and, perhaps more importantly, for its role in, and support for, the community,” said Abdul Rahim. “Meanwhile, Ithmaar Bank’s flagship subsidiary, Faysal Bank Limited, already one of the most prominent retail banks in Pakistan, continued its remarkable growth in 2017, adding 50 new branches throughout the year to bring the total number to more than 400 branches,” he said.
HRH Prince Amr and Abdul Rahim both stressed that the Group’s 2017 achievements would not have been possible without the continued support of shareholders and the guidance of regulators.
“We take this opportunity to thank the Board and all our shareholders, as well as the CBB, the Ministry of Industry, Commerce and Tourism, the Bahrain Bourse, Boursa Kuwait and the Dubai Financial Market,” they said.
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Ithmaar Holding reports 2017 financial results

MANAMA, BAHRAIN – 26 February 2018 – Ithmaar Holding B.S.C. (formerly Ithmaar Bank BSC) [“Ithmaar”] [“the Group”] reported today (ed note: 26/02/18) a net loss of US$72.40 million for the year ended 31 December 2017, compared to a net profit of US$13.80 million reported for 2016. Net loss attributable to equity holders for the year ended 31 December 2017 was US$84.71 million, compared to a net profit US$3.28 million reported for 2016.

The 2017 financial results included a net loss of US$56.15 million for the three-month period ended 31 December 2017, compared to a net loss of US$2.93 million for the same period in 2016. Net loss attributable to equity holders for the three-month period ended 31 December 2017 was US$57.67 million, compared to the US$3.23 million net loss reported for the same period in 2016.

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 year ended 31 December 2017.

“On behalf of the Board of Directors, I am pleased to announce that Ithmaar’s financial results show that the continued focus on our core retail banking business is paying off, even if the overall results are not immediately obvious as these have been impacted by non-core business,” said HRH Prince Amr. “Although our total income, at US$392.46 million for the year ended 31 December 2017, decreased by five percent from the total income of US$413.17 million reported for the year ended December 31 December 2016, mainly due to unrealized foreign exchange losses as well as assets being classified as Held For Sale, our income from core retail banking business grew by 72.3 percent, with the Group’s share of income from unrestricted investment accounts as a Mudarib, increasing to US$76.86 million for the year ended 31 December 2017, compared to US$44.60 million for 2016,” he said.

“During the year ended 31 December 2017, Ithmaar Group initiated an active programme to sell specific investments. Accordingly, these investments were consequently presented as assets classified as Held For Sale in the consolidated statement of financial position,” said HRH Prince Amr.

“I take this opportunity to express our sincere thanks and appreciation to our shareholders for their confidence, to the Central Bank of Bahrain for their continuous guidance and support, and to the Ministry of Industry, Commerce and Tourism, Bahrain Bourse, Boursa Kuwait and Dubai Financial Market for their continuous support,” said HRH Prince Amr.

Ithmaar Chief Executive Officer, Ahmed Abdul Rahim, said the results demonstrate that the unwavering focus on core retail banking business is delivering tangible results.

“I am pleased to report that the balance sheet, for example, is stable and continues to grow,” said Abdul Rahim. “Total assets stood at US$8.61 billion as at 31 December 2017, a 3.2 percent increase compared to US$8.34 billion as at 31 December 2016,” he said.

“Murabaha and other financings also increased to US$4.29 billion as at 31 December 2017, a 9.2 percent increase compared to US$3.93 billion as at 31 December 2016,” said Abdul Rahim. “The equity of unrestricted investment accountholders, at US$2.83 billion as at 31 December 2017, also increased by 2.1 percent compared to US$2.77 billion as at 31 December 2016, which reflects customers’ confidence in Ithmaar,” he said.

“On 29 January 2018, Ithmaar was listed on the Dubai Financial Market (DFM), adding a new key market alongside our current listing on the Bahrain Bourse and Boursa Kuwait,” said Abdul Rahim. “The additional listing opens trading on Ithmaar Holding’s shares to new, exciting markets. This, in turn, will create new investment opportunities for investors in the GCC markets,” he said.

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DFM welcomes the listing of Bahrain’s Ithmaar Holding

  • HE/ Essa Kazim: “The fifth of its kind dual listing underlines the strong ties between the United Arab Emirates and the Kingdom of Bahrain”
  • Ithmaar Holding: “The DFM listing, alongside Bahrain Bourse and Boursa Kuwait, opens trading on Ithmaar Holding’s shares to a new and exciting market”

 Dubai, 29 January 2018: Dubai Financial Market (DFM) today announced the listing of Bahrain’s Ithmaar Holding B.S.C. (Ithmaar), one of the leading investment institutions in the Kingdom of Bahrain, as trading commenced on the bank’s shares under the trading symbol (ITHMR), which appears on DFM screens, trading system and publications within the Banking Sector.

This listing further strengthens the prominent position of DFM as the most favored listing venue for leading local and regional companies and lifts the total number of listed companies to 66. It also lifts number of Dual listings to 16 including five Bahraini companies.

Ithmaar Holding Board Member, Abdulelah Ebrahim Al-Qassimi, rang the market-opening bell in the presence of His Excellency Essa Kazim, Chairman of DFM and senior representatives from both sides.

Commenting on this development, H.E. Essa Kazim said: “We are delighted to welcome the listing of Ithmaar Holding on DFM. This is the fifth of its kind dual listing from Bahrain, which underlines the strong ties between the United Arab Emirates and the Kingdom of Bahrain and represents a strong addition to the Banking sector on our market, providing investors with new investment opportunities. The listing also reinforces DFM’s position as the market of choice for companies seeking Dual listing in a clear indication on businesses’ high level of confidence in our exchange due its world-class infrastructure, enormous and diversified investor base and innovative issuer services. These factors further strengthened DFM’s leading position as most favoured listing venue for companies from the UAE and across the region and fortifies Dubai’s position as an international financial hub. DFM is constantly endeavours to diversify the range of investment opportunities offered to its enormous investor base by encouraging and partnering with companies from various sectors across the region to benefit from listing on the region’s leading stock exchange.”

Ithmaar Holding Board Member, Abdulelah Ebrahim Al-Qassimi, said: “We are pleased with listing on the DFM, adding a new key market alongside our current listing on the Bahrain Bourse and Boursa Kuwait. The listing is testimony to the important role that Dubai, alongside the Kingdom of Bahrain, plays as a key banking and financial services hub in the region with its reputation for excellence”.

Ahmed Abdul Rahim, the Group Chief Executive Officer of Ithmaar Holding, said: “Ithmaar Holding is a widely diversified financial services company that is licensed and regulated by the Central Bank of Bahrain (CBB) DFM listing adds further diversity for our shareholders and opens trading on Ithmaar Holding’s shares to a new and exciting market, and will create new investment opportunities for investors in the GCC markets. The listing concludes preparation under the guidance of the CBB, the Bahrain Bourse, the United Arab Emirate’s Securities and Commodities Authority, and the DFM, and we are deeply grateful for the advice and support we received.”

Ithmaar Holding owns two wholly-owned subsidiaries: Ithmaar Bank, a Bahrain-based Islamic retail bank, and IB Capital, an investment subsidiary. Ithmaar Bank and IB Capital are both licensed and regulated by the CBB. Ithmaar Bank owns 66.6 percent of Faysal Bank Limited (FBL), a retail banking subsidiary in Pakistan that is listed on the Pakistan Stock Exchange and is mainly engaged in corporate, commercial, retail and consumer banking activities.

CBB approves Ithmaar’s Dubai listing

MANAMA, BAHRAIN – 10 January 2018 –Ithmaar Holding B.S.C. (Ithmaar) received on Monday (ed note: 08/01/18) final approval from the Central Bank of Bahrain (CBB) to list on the Dubai Financial Market (DFM). The CBB’s approval follows an earlier announcement that the United Arab Emirate’s Securities and Commodities Authority (SCA) had approved the listing.

Ithmaar, which is licensed and regulated by the CBB and is currently listed on the Bahrain Bourse and Boursa Kuwait under the ticker [ITHMR], had announced plans in 2017 to list on additional stock exchange in the region.

The plans, which were presented by an Ithmaar shareholder as an additional agenda item at the Annual General Meeting (AGM) in March 2017, were approved by the shareholders who welcomed the initiative.

Ithmaar welcomed the CBB’s final approval, and said it is working on completing remaining requirements for the DFM listing and will announce a listing date in due course.

“We are pleased to announce that all required approvals are in place, and we are now finalising details with a view to complete the listing as soon as possible,” said Ithmaar Group Chief Executive Officer, Ahmed Abdul Rahim. “We are deeply grateful to the CBB, SCA and DFM for their guidance and support over the past year, and we look forward to continuing to work closely with our regulators and other relevant authorities to further enhance shareholder value and contribute to our region’s economic growth,” he said.

Abdul Rahim had earlier stressed that the additional listing will open trading on Ithmaar’s shares to new, exciting markets, and said that this, in turn, will create new investment opportunities for investors in the GCC markets.

Ithmaar owns two wholly-owned subsidiaries: Ithmaar Bank, a Bahrain-based Islamic retail bank, and IB Capital, an investment subsidiary. Ithmaar Bank and IB Capital are both licensed and regulated by the CBB. Ithmaar Bank owns 66.6 percent of Faysal Bank Limited (FBL), a retail banking subsidiary in Pakistan that is listed on the Pakistan Stock Exchange and is mainly engaged in corporate, commercial, retail and consumer banking activities.

-ENDS-

Ithmaar in process of completing Dubai listing

MANAMA, BAHRAIN – 25 December 2017 –Ithmaar Holding B.S.C. (Ithmaar) received on Thursday (ed note: 14/12/17) approval from the United Arab Emirate’s Securities and Commodities Authority (SCA) to list on the Dubai Financial Market (DFM).

Ithmaar, which is licensed and regulated by the Central Bank of Bahrain (CBB) and is currently listed on the Bahrain Bourse and Boursa Kuwait, said the SCA’s approval marks an important milestone in its plans to list on additional stock exchange in the region. The plan, which was presented by an Ithmaar shareholder as an additional agenda item at the Annual General Meeting (AGM) in March 2017, was approved by the shareholders who welcomed the initiative. The listing requirements are subject to completion of remaining requirements of the DFM and subject to CBB’s final approval.

“We are pleased to note the SCA’s approval on plans to list at the DFM,” said Ithmaar Group Chief Executive Officer, Ahmed Abdul Rahim. “We are continuing to work closely with the CBB as well as the relevant authorities in the Kingdom of Bahrain, and we hope to have final approval to proceed with the additional listing as soon possible,” he said.

“The additional listing will open trading on Ithmaar’s shares to new, exciting markets,” said Abdul Rahim. “This, in turn, will create new investment opportunities for investors and Ithmaar shareholders in the GCC markets,” he said.

Ithmaar owns two wholly-owned subsidiaries: Ithmaar Bank, a Bahrain-based Islamic retail bank, and IB Capital, an investment subsidiary. Ithmaar Bank and IB Capital are both licensed and regulated by the CBB. Ithmaar Bank owns 66.6 percent of Faysal Bank Limited (FBL), a retail banking subsidiary in Pakistan that is listed on the Pakistan Stock Exchange and is mainly engaged in corporate, commercial, retail and consumer banking activities.

ITHMAAR HOLDING REPORTS THIRD QUARTER RESULTS

MANAMA, BAHRAIN – 13 November 2017 – Ithmaar Holding BSC (formerly Ithmaar Bank BSC) (Ithmaar) reported today (ed note: 13/11/17) a net loss of US$16.3 million for the nine-month period ended 30 September 2017, compared to a net profit of US$16.7 million for the same period last year.

Net loss attributable to equity holders for the nine-month period ended 30 September 2017 was US$27million, compared to a net profit of US$6.5 million reported for the same period last year. This included a net loss of US$14.7 million for the three-month period ended 30 September 2017, compared to a net profit of US$4.8 million for the same period last year. Net loss attributable to equity holders for the three-month period ended 30 September 2017 was US$17.8 million, compared to a net profit of US$2.1 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 nine-month period ended 30 September 2017.

“On behalf of the Board of Directors, I am pleased to announce that Ithmaar’s financial results for 2017 show that the core business continued to grow throughout the period,” said HRH Prince Amr. “Overall income from our core business grew significantly during the year, as evident from the higher share on income from unrestricted investment accounts as a Mudarib, which grew 49.8 percent to US$51.9 million for the nine-month period ended 30 September 2017, compared to US$34.7 million for the same period last year, as well as the increase in income from murabaha and other financing, which grew by 9.3 percent to US$108.4 million for the nine-month period ended 30 September 2017, compared to US$99.2 million for the same period last year,” he said.

“During the nine-month period ended 30 September 2017, Ithmaar Group initiated an active programme to locate a buyer for a specific asset within the Group. Accordingly, this asset was consequently presented as an asset classified as held for sale in the consolidated statement of financial position,” said HRH Prince Amr. “At 30 September 2017, this asset was classified as held for sale and the resultant impairment loss was recorded in the consolidated statement of income during the period,” he said.

“Although net income, before provision for impairment and overseas taxation, dropped to US$32.8 million for the nine-month period ended 30 September 2017, from US$51.1 million for the same period last year, this loss was mainly due to unrealized foreign exchange losses of US$17.2 million,” said HRH Prince Amr.

Ithmaar Chief Executive Officer, Ahmed Abdul Rahim, said the results reflect a clear, unwavering focus 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 US$8.6 billion as at 30 September 2017, a 3.5 percent increase compared to US$8.3 billion as at 31 December 2016, and a 9 percent increase compared to US$7.9 billion as at 30 September 2016,” he said.  “Murabaha and other financings also increased to US$3.6 billion as at 30 September 2017, a 4 percent increase compared to US$3.4 billion as at 31 December 2016, and a 9.7 percent increase compared to US$3.3 billion as at 30 September 2016,” said Abdul Rahim. “Sukuk and other investment securities mainly representing investment in government securities also increased to US$2.1 billion as at 30 September 2017, a 9.2 percent increase compared to US$1.9 billion as at 31 December 2016, and a 32 percent increase compared to US$1.6 billion as at 30 September 2016,” he said.

“Customer current accounts also increased to US$1.7 billion as at 30 September 2017, a 7.2 percent increase compared to US$1.6 billion as at 31 December 2016, and a 13.8 percent increase compared to US$1.5 billion as at 30 September 2016,” said Abdul Rahim. “The equity of unrestricted investment accountholders, at US$2.83 billion as at 30 September 2017, increased by 2.1 percent compared to US$2.77 billion as at 31 December 2016, and by 4.7 percent compared to US$2.7 billion as 30 September 2016,” he said.