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.

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.

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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.