Subsidiaries and Associates

Key operating subsidiaries of Ithmaar Holding

Ithmaar Bank B.S.C. (c)

Ithmaar Bank is one of the largest Islamic retail banks in the Kingdom of Bahrain. The Bank, including its predecessors, has been in operation for more than 30 years.

The strategy for the Bank is to maintain its dominant position in the Kingdom and aim for higher growth. The strategies to achieve Ithmaar Bank’s medium-term objective of sustainable profitability includes a firm focus on its core retail business growth.

The standalone (Bahrain Operations) total assets as of 31 December 2018 amounted to US$ 4.33 billion.

 

IB Capital B.S.C. (c)

IB Capital maintains a presence in regional and overseas markets through its investments in subsidiaries and associated companies.

All non-core assets (subsidiaries, associates and other major investments and financing to shareholders / related parties) of the erstwhile Ithmaar Bank B.S.C. have been transferred to IB Capital as part of the reorganisation that was completed on 2 January 2017. These include Bahrain-based BBK (Banking), Solidarity (an Islamic insurance company), Naseej (Infrastructure), Ithmaar Development Company Limited (Real Estate), Citic International Asset Management (Hong Kong) (equity investment and asset management) and Ithraa Capital (Saudi Arabia) (investment banking).

The strategies to achieve IB Capital’s objective of focused management of non-core assets (investments and other assets) include managing these assets and identifying and evaluating opportunities to exit at acceptable prices.

The total standalone assets as of 31 December 2018 amounted to US$ 1.5 billion.

 

Key operating subsidiaries of Ithmaar Bank

Faysal Bank Limited (FBL)

FBL is one of the most prominent and fastest growing retail banks in Pakistan.

FBL, including its predecessors, has been in operations for more than 30 years. FBL shares are listed on the Pakistan Stock Exchange. FBL is mainly engaged in Commercial, Retail and Corporate banking activities and strives to provide quality service to its customers to meet their financial needs. FBL’s branches have been transformed into multiproduct selling hubs through which customers can access a wide variety of products and services. There is also a great deal of focus on realising synergies between FBL’s various operating units to ensure maximum value creation and holistic customer solutions. Ithmaar Bank owns 66.57 percent of FBL.

FBL has 455 branches, spread over 130 cities across Pakistan. The Bank has also sizable clients of Corporate, Commercial, SME and Consumer segments. FBL is increasing its branch network to increase customer reach and provide banking services to customers at their doorstep. The Bank is enhancing its technology platform to facilitate customers transactions and reduce the cost of doing business. FBL introduced Virtual Card allowing customers to make secure worldwide online purchases.

With increase in the local policy benchmark rate, decent deposit mix and diversified loan portfolio, the Bank is expected to maintain its growth trajectory.

FBL total assets and total shareholders’ equity as of 31 December 2018 amounted to PKR 585.1 billion (equivalent US$ 4.2 billion) and PKR 39 billion (equivalent US$ 278 million) respectively.

Dilmunia Development Fund I L.P.

Dilmunia Development Fund I L.P. (the “Fund”) is an exempted limited partnership formed and registered under the laws of the Cayman Islands. The General Partner in the Partnership is Ithmaar-Dilmunia General Partner Company Limited. The Fund has been formed to acquire 650,000 square meters of land (the “Land”), within the Health Island — Dilmunia Project in Bahrain to develop the infrastructure and to sell the Land in parcels.

The total assets and total shareholders’ equity as of 31 December 2018 amounted to US$167 million and US$136 million respectively.

Key operating subsidiaries and associates of IB Capital

Ithmaar Development Company (IDC)

IDC is a wholly-owned subsidiary of the Group which was established in 2007 with the objective of developing and managing major development, real estate and other infrastructure projects. IDC’s flagship projects include Dilmunia, a 1.25 million square meters manmade island off the coast of Bahrain.

The current strategy of IDC focuses on the infrastructure development relating to Dilmunia project as well as providing development management services to Naseej B.S.C. (c).

BBK B.S.C. (BBK)

BBK is one of the largest commercial banks in Bahrain with overseas presence in Kuwait, India and the United Arab Emirates. BBK provides a full range of lending, deposit, treasury and investment services, and has established a number of subsidiaries in the areas of brokerage, financial services and credit cards.

BBK’s vision remains to be the premier regional financial services enterprise in providing superior products and services of high quality through innovation, technology and lifelong client relationships.

The total assets and total shareholders’ equity as of 31 December 2018 amounted to US$9.5 billion and US$1.32 billion respectively.

Naseej B.S.C. (c) (Naseej)

Naseej is the Middle East and North Africa (MENA) region’s first fully-integrated real estate and infrastructure development company, encompassing the entire value chain from concept to completion.

Naseej’s core activities comprise design and master planning; development and construction; building components; mortgage facilitation; and asset management. Naseej was established by prominent private and public sector investors to act as a pioneering catalyst for addressing the region’s affordable housing development needs.

Naseej’s strategy focuses on pursuing property development and investment opportunities in affordable housing and retail real estate sectors in the MENA region besides working on the Private Public Partnership Housing Project (PPPHP) in Bahrain. Apart from the PPPHP, Naseej is also involved in major residential projects in Bahrain like Yasmeenat Saar and Jumana.

The total assets and total shareholders’ equity as of 31 December 2018 amounted to US$400million and US$306 million respectively.

 

Solidarity Group Holdings B.S.C. (c) (Solidarity Group)

Solidarity Group is one of the largest takaful (Islamic insurance) groups in the region. Solidarity provides general and family takaful products and services. Solidarity Group operates through subsidiaries and associates in Bahrain, Jordan, and Saudi Arabia. Solidarity Group acquired 71% of Al Ahlia Insurance (one of the oldest and largest listed insurance companies in Bahrain) in December 2016 and the merger of Solidarity General Takaful (a wholly-owned subsidiary of Solidarity Group) and Al Ahlia Insurance was completed in 2017.

The merged entity “Solidarity Bahrain” is now one of the leading insurance provider in Bahrain. Solidarity Group’s strategy focuses on providing takaful services both locally and in key regional markets, mainly Jordan and Saudi Arabia. The total assets and total shareholders’ equity of the Group as of 31 December 2018 amounted to US$404 million and US$ 188 million respectively.

 

CITIC International Asset Management Limited (CITICIAM)

CITICIAM is part of the CITIC Group, a major diversified financial and investment conglomerate wholly-owned by the State Council of the People’s Republic of China (CITIC group owns 46% in CIAM). CITICIAM’s principal activity is to invest in companies and projects in China and internationally. Established in 2002 to specialise in distressed asset management, the current portfolio of CITICIAM includes direct investments in real estate, high technology, health, retail and industrial projects.

CITICIAM’s strategy focuses on investment mainly in China in environmental, agricultural, natural resources and health sector specifically in SME’s, which are run in line with the state policies and contribute to the socio-economic development of China.

The total assets and total shareholders’ equity as of 31 December 2018 amounted to US$237 million and US$215 million respectively