28 Feb 2013
MANAMA, BAHRAIN – 28 February 2013 – Ithmaar Bank, a Bahrain-based Islamic retail bank reported today (ed note: 28/02/13) a net loss of BD10.1million in 2012, compared to a net loss of BD23.3million in 2011. It is encouraging to note the turnaround in profit before impairment and taxation with a profit of BD12.8million for 2012, compared to a loss of BD14.3million in 2011.
The announcement, by Ithmaar Bank Chairman His Royal Highness Prince Amr Al Faisal, followed the review and approval, by the Board of Directors, of the Bank’s consolidated financial results for the year ended 31 December 2012. The results include a loss, for the quarter ended 31 December 2012, of BD4.2milion, against a loss of BD25.8million for the same period last year.
“On behalf of the Ithmaar Bank Board of Directors, I am pleased to announce improved performance across all Ithmaar Bank’s business lines,” said HRH Prince Amr. “In particular, I am pleased to announce that total income has grown by 7.9 percent, to BD183.4million in 2012 from BD170million in 2011,” he said.
“Operating income has also increased by 32.7 percent, to BD87.5million from BD66million in 2011,” said HRH Prince Amr. “Consequently, the results show that net profit before impairment and taxation for the year is a profit of BD12.8million against a loss of BD14.3million last year,” he said.
HRH attributed the positive financial results of 2012 to continued growth in Ithmaar’s core retail banking operations. “In 2012, the number of retail branches across the group increased by nine and, despite this increased operations, administrative expenses remained under control and are marginally lower than for 2011,” said HRH Prince Amr. “Meanwhile, the Bank has continued to set-up prudent impairment provisions which, in 2012, amounted to BD20.4million as compared to BD8.2million in 2011. In 2012, the performance of one of our subsidiaries was also impacted by significant profit rate cuts announced by its local regulator,” he said.
Ithmaar Bank Chief Executive Officer and Member of the Board, Mohammed Bucheerei, said the Bank is continuing to work towards realising the board-approved vision of becoming the region’s premier Islamic retail bank.
“I am pleased to report that Ithmaar Bank continues to successfully transform its balance sheet structure with a focus on retail business,” said Bucheerei. “This is evident from the growth in Murabahas and other financings which have increased by 15percent, to BD1.19billion in 2012 from BD1.03billion in 2011. Similarly, the equity of unrestricted investment account holders has increased by an impressive 18.6percent, to BD660.2million in 2012 from BD556.7million in 2011,” he said.
“Shareholders’ equity remains strong and stable, at BD222.1 million, and the Bank’s balance sheet footing has marginally increased by 4.6percent, to BD2.7billion in 2012 from BD2.6billion in 2011, ,” said Bucheerei. “The Bank’s impressive financial performance in 2012 is, mainly due to our success in continuing to develop our retail banking operations, adding new products and improving our services,” he said.
In fact, Ithmaar’s achievements have helped earn the Bank international kudos, with the Bank’s Mobicash offering earning the UN-based World Summit Award mobile (WSA-mobile). The prestigious award stand testimony to the Bank’s growing success and underscore its commitment to becoming the region’s premier Islamic retail bank.