Ithmaar Holding reports profits for the year

MANAMA, BAHRAIN – 13 February 2020 – Ithmaar Holding B.S.C. (Trading symbol: ITHMR), a Bahrain-based holding company, announced its financial results for the year ended 31 December 2019.  

The announcement, by Ithmaar Holding Chairman His Royal Highness Prince Amr Al Faisal, follows the review and approval of the Boards of Directors of the company’s consolidated financial results. 

Ithmaar Holding reported a net loss attributable to equity holders for the three-month period ended 31 December 2019 of US$11.38 million, a 57.4 percent decrease compared to the net loss of US$26.71 million reported for 2018.  

Net profit attributable to equity holders for the year ended 31 December 2019 of US$0.67 million, compared to the net loss of US$23.98 million reported for 2018, mainly due to growth in core income. 

Earnings Per Share (EPS) for the quarter ended 31 December 2019 were negative US Cents 0.39, compared to negative US Cents 0.92 for the same period in 2018. EPS for the year ended 31 December 2019 improved to US Cents 0.02, compared to negative US Cents 0.82 for 2018. 

Total net loss for the three-month period ended 31 December 2019 was US$6.69 million, a 423.1 percent increase compared to the net loss of US$1.28 million reported for 2018 mainly due to impairment provision during the period. 

Total net profit for the year ended 31 December 2019 was US$12.20 million, a 21.3 percent increase compared to the net profit of US$10.06 million reported for 2018. 

Ithmaar Holding’s total owners’ equity stood at US$95.55 million as at 31 December 2019, a 17.9 percent decrease compared to US$116.36 million as 31 December 2018, resulting mainly from the devaluation of Pakistan Rupee. Accumulated losses at 31 December 2019 of US$746.29 million amounted to 98.5 percent of the share capital compared to 99.2 percent at 31 December 2018. Total assets stood at US$8.09 billion as at 31 December 2019, a 4.8 percent decrease compared to US$8.49 billion as at 31 December 2018. 

This press release and the full set of consolidated financial statements are available on the Bahrain Bourse website.

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.

ITHMAAR SHAREHOLDERS REVIEW 2016 PERFORMANCE WITH REPORTED PROFITS AND SUCCESSFUL COMPLETION OF REORGANISATION

MANAMA, BAHRAIN – 30 March 2017 –Ithmaar Holding B.S.C. (formerly Ithmaar Bank B.S.C.) (Ithmaar) shareholders praised the transformation witnessed in 2016 with the successful completion of a major reorganisation as well as a complete turnaround in Ithmaar’s financial performance.
This followed an announcement that the reorganised Ithmaar became fully operational with the start of 2017, concluding the full implementation of plans for a new group structure that was designed to provide greater insight into the strength of the core retail banking operations and further facilitate the focused management of investment and non-core assets. As a result of its focus on core retail banking business, Ithmaar earlier reported a net profit of US$13.80 million for 2016, compared to a US$46.40 million net loss reported for 2015. Net profit attributable to equity holders for the year ended 31 December 2016 was US$3.28 million, compared to a net loss US$60.80 million reported for 2015.
The announcements were made by Ithmaar Board Member, Sheikh Zamil Abdulla Al-Zamil, who chaired Ithmaar’s Annual General Meeting (AGM) and the Extraordinary General Meeting (EGM) which followed. Also present at the meetings, which were held at the Diplomat Radisson Blu Hotel in Bahrain, were Directors and members of the Ithmaar Executive Management team, representatives of its Sharia Supervisory Board, the Central Bank of Bahrain (CBB), the Ministry of Industry, Commerce and Tourism, statutory auditors PricewaterhouseCoopers, and the Bahrain Bourse.
The plans for a new group structure, which were discussed and approved at the last shareholders’ meeting on 28 March 2016, involved conversion of the commercial registration of Ithmaar Bank B.S.C into Ithmaar Holding B.S.C. (Ithmaar Holding). Ithmaar Holding is licensed and regulated by the CBB and listed on the Bahrain Bourse and Boursa Kuwait. Following the conversion, Ithmaar Holding retains 100 percent ownership of all assets formerly owned by Ithmaar Bank through two wholly-owned subsidiaries, Ithmaar Bank B.S.C. (c), an Islamic retail bank subsidiary which holds the core retail banking business, and IB Capital B.S.C. (c) (IB Capital), an investment subsidiary, which holds investments and other non-core assets. The two subsidiaries are licensed and regulated by the CBB.
At the meeting, Sheikh Zamil extended, on behalf of the Board and the Executive Management team, sincere thanks and appreciation to the Central Bank of Bahrain, the Ministry of Industry, Commerce and Tourism, the Bahrain Bourse and Boursa Kuwait for their outstanding support which has led to the completion of the two-year long reorganisation project successfully and on time. During the EGM, shareholders also approved amendments to the Memorandum and Articles of Association of Ithmaar Holding.
“On behalf of the Board of Directors, I am pleased to announce that 2016 has been a year of remarkable transformation at Ithmaar,” said Sheikh Zamil. “Throughout the year, the focus remained on implementing the new group structure while continuously developing our core retail banking business. Ithmaar’s performance in 2016 is testimony to the success of these efforts, and we are confident that this growth will continue following the completion of the reorganisation and the formal commencement of the new group structure with the start of 2017,” he said.
Ithmaar Chief Executive Officer, Ahmed Abdul Rahim, said the financial results are a direct consequence of the clear focus on core retail banking business.
“In 2016, Ithmaar conducted certain process-reengineering initiatives to improve efficiency at the branches as well as enhance customer experiences at all possible touch points,” said Abdul Rahim. “As a result of Ithmaar’s consistent efforts in Bahrain to enhance its products, expand its network and introduce new services, retail banking customer current accounts, savings accounts, Thimaar and URIA deposits, increased by 10.9 percent in 2016, from US$1.72 billion at the end of 2015 to US$1.91 billion. Ithmaar’s financing business also increased by 7.2 percent, from US$1.18 billion at the end of 2015 to US$1.27 billion. The growth was driven mainly by home financing, which increased by 51 percent in 2016,” he said.
“Ithmaar’s success in 2016 is perhaps most clearly reflected in the growth in net income, before overseas taxation, which amounted to US$36.74 million for 2016, a complete turnaround from a net loss of US$17.07 million, before overseas taxation, reported for 2015. Total assets also increased to US$8.34 billion as at 31 December 2016, an increase of 2.5 percent from US$8.14 billion as at 31 December 2015,” said Abdul Rahim. “This is, in a large part, a result of continuously improving Ithmaar’s products and services while also keeping costs and expenses under control. Total expenses for 2016, for example, amounted to US$192.10 million, a marginal increase from the total expenses of US$190.41 million reported for 2015, despite the continuous expansion of Ithmaar’s retail banking operations both in Bahrain and in Pakistan,” he said.
“Our focus on business growth and enhanced customer satisfaction, however, did not distract us from our commitment to our social responsibilities and, in 2016, we continued to making real and meaningful contributions to the community in which we operate” said Abdul Rahim. “This, along with our clear commitment to transparency, has not gone unnoticed and, in 2016, the World Islamic Banking Conference singled Ithmaar out from among the world’s Islamic banks and presented it with a prestigious international award in recognition of its Corporate Social Responsibility and Financial Disclosure,” he said.
“The achievements of 2016 are made all the more impressive by Ithmaar’s continuously improving financial performance,” said Abdul Rahim. “The balance sheet continues to be stable, and our customer deposits continue to grow as is evident from the equity of unrestricted investment account holders growing to US$2.77 billion as at 31 December 2016, a 15.5 percent increase compared to US$2.40 billion as at 31 December 2015,” he said.
“This increase reflects customer confidence in Ithmaar, and is further evidence that efforts to grow continuously closer to customers are paying off,” said Abdul Rahim. “Current accounts and due to investors, for example, grew to US$3.48 billion as at 31 December 2016, a 9.3 percent increase compared to US$3.19 billion as at 31 December 2015. Financings Murabaha, Musharaka and Ijarah also increased to US$3.93 billion as at 31 December 2016, a 5.7 percent increase from US$3.72 billion as at 31 December 2015,” he said.
In 2016, Ithmaar further expanded its retail banking network, both in Bahrain where it added a new full-service branch in Galali and two Automated Teller Machines (ATMs) in Hamad Town, as well as in Pakistan, where Faysal Bank Limited added 75 new, full-service Islamic branches.
In line with its commitment to continuously improving its products and services, Ithmaar partnered with Batelco and Arab Financial Services to launch Bahrain’s first ever mobile payment solution, EasyPay, in 2016. The solution uses secure Near Field Communication (NFC) tags to eliminate the need for cash or cards by allowing customers to shop simply by tapping their mobile phones at Point of Sale (POS) machines. The formal launch earlier this year marked a key milestone for the Bahrain retail market, potentially revolutionizing shopping experiences of the customers with secure, real-time payments now possible directly from their mobile phones.
At the end of the meetings, the Chairman thanked the attendees, as well as all shareholders, customers and investors for their continued support and confidence in Ithmaar.

ITHMAAR SHAREHOLDERS APPROVE ADDITIONAL LISTING ON REGIONAL STOCK EXCHANGES

MANAMA, BAHRAIN – 02 April 2017 –Ithmaar Holding B.S.C. (formerly Ithmaar Bank B.S.C.) (Ithmaar) shareholders approved a proposal on listing Ithmaar 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) held on Thursday (ed note: 30/03/17), was approved unopposed by the shareholders who welcomed the initiative.
Ithmaar Holding, which is licensed and regulated by the Central Bank of Bahrain, is currently listed on the Bahrain Bourse and Boursa Kuwait. At the Thursday meeting, shareholders authorised the Board of Directors and Ithmaar management to study additional listings in various stock exchanges in the region and to complete the additional exchange listing process.
The meeting was chaired by Ithmaar Holding Board member Sheikh Zamil Abdulla Al-Zamil and attended by Directors Dr. Amani Khaled Bouresli and Nabeel Khaled Mohamed Kanoo, as well as Ithmaar Holding Chief Executive Officer, Ahmed Abdul Rahim, Ithmaar Bank Chief Operating Officer, Ravindra Khot, and Ithmaar Bank General Manager, Banking Group, Abdul Hakeem Khalil Al-Mutawa. Also present were members of the Ithmaar Bank Executive Management team, as well as representatives of the Ithmaar Holding Sharia Supervisory Board, the Central Bank of Bahrain (CBB), the Ministry of Industry, Commerce and Tourism, statutory auditors PricewaterhouseCoopers, and the Bahrain Bourse.
At the meeting, shareholders praised the transformation witnessed in 2016 with the successful completion of a major reorganisation as well as a complete turnaround in Ithmaar’s financial performance. The reorganised Ithmaar became fully operational with the start of 2017, concluding the full implementation of plans for a new group structure that was designed to provide greater insight into the strength of the core retail banking operations and further facilitate the focused management of investment and non-core assets. As a result of its focus on core retail banking business, Ithmaar reported a net profit of US$13.80 million for 2016, compared to a US$46.40 million net loss reported for 2015. Net profit attributable to equity holders for the year ended 31 December 2016 was US$3.28 million, compared to a net loss US$60.80 million reported for 2015.

ITHMAAR HOLDING REPORTS FIRST QUARTER PROFITS

MANAMA, BAHRAIN – 14 May 2017 – Ithmaar Holding BSC (formerly Ithmaar Bank BSC) (Ithmaar) reported today (ed note: 14/05/17) 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.

ITHMAAR HOLDING REPORTS SECOND QUARTER RESULTS

MANAMA, BAHRAIN – 10 August 2017 – Ithmaar Holding BSC (formerly Ithmaar Bank BSC) (Ithmaar) reported today (ed note: 10/08/17) a net loss of US$1.59 million for the six-month period ended 30 June 2017, compared to a net profit of US$11.96 million for the same period last year.
Net loss attributable to equity holders for the six-month period ended 30 June 2017 was US$9.25 million, compared to a net profit of US$4.4 million reported for the same period last year. This included a net loss of US$7.38 million for the three-month period ended 30 June 2017, compared to a net profit of US$7.14 million for the same period last year. Net loss attributable to equity holders for the three-month period ended 30 June 2017 was US$9.82 million, compared to a net profit of US$3.19 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 six-month period ended 30 June 2017.
“On behalf of the Board of Directors, I am pleased to announce that Ithmaar’s half-year financial results show that the core business continued to grow in 2017,” said HRH Prince Amr. “Although net income, before provision for impairment and overseas taxation, dropped to US$29.83 million for the six-month period ended 30 June 2017, from US$36.67 million for the same period last year, this loss was mainly due to unrealized foreign exchange losses of US$12.5 million, overall income from our core business grew significantly during the same period. This is evident from the increased income from murabaha and other financing which grew by 7.7 percent to US$72.08 million for the six-month period ended 30 June 2017, compared to US$66.9 million for the same period last year, as well as the higher share on income from unrestricted investment accounts as a Mudarib which grew 60.8 percent during the first half of this year to US$34.39 million, compared to US$21.38 million for the same period last year. This is, mainly, a result of the 75 new Islamic retail branches that were opened by Faysal Bank Limited in Pakistan last year,” he said.
Ithmaar Chief Executive Officer, Ahmed Abdul Rahim, said the focus remains firmly 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$8.72 billion as at 30 June 2017, a 4.5 percent increase compared to US$8.34 billion as at 31 December 2016, and a 2.9 percent increase compared to US$8.47 billion as at 30 June 2016,” he said.
“Customer current accounts also increased to US$1.73 billion as at 30 June 2017, a 9.6 percent

increase compared to US$1.58 billion as at 31 December 2016, and a 15.5 percent increase compared to US$1.5 billion as at 30 June 2016,” said Abdul Rahim. “The equity of unrestricted investment accountholders, at US$2.78 billion as at 30 June 2017, increased by 0.4 percent compared to US$2.77 billion as at 31 December 2016, and by a significant 7.2 percent compared to US$2.59 billion as 30 June 2016,” he said.