09 Aug 2015
MANAMA, BAHRAIN – 9 August 2015 – Ithmaar Bank, a Bahrain-based Islamic retail bank, announced today a net profit of US$13 million for the first half of 2015, as compared to a net profit of US$1.77 million for the same period last year. Net profit for the three month period ended 30 June 2015 amounted to US$5.4 million, as compared to a net loss of US$0.34 million reported for the three month period ended 30 June 2014.
Net profit attributable to equity holders of the Bank amounted to US$5.66 million for the first half of 2015, as compared to the net loss of US$0.11 million reported for the same period last year. Net profit attributable to equity holders of the Bank for the three month period ended 30 June 2015 amounted to US$3 million, as compared to the net loss of US$0.61 million reported for the three month period ended 30 June 2014.
The announcement, by Ithmaar Bank Chairman His Royal Highness Prince Amr Al Faisal, follows the review and approval, by the Board of Directors, of the Bank’s consolidated financial results for the six-month period ended 30 June 2015.
“On behalf of the Ithmaar Bank Board of Directors, I am pleased to announce that the Bank continues to report increased profits for 2015,” said HRH Prince Amr. “The half-year financial results for 2015 show business growth resulting into significant improvement in net profit as compared to the same period last year. This is also explained by turnaround from a net loss of US$0.34 million reported for the three-month period ended 30 June 2014, to a net profit of US$5.4 million for the same period this year,” he said.
“The Bank’s operating income has increased by 37.2 percent in 2015 to US$157.6 million from the US$114.88 million reported for the same period last year,” said HRH Prince Amr. “This increase is due to overall revenue growth which has resulted in the net income, before provisions for impairment and overseas taxation for the period increasing 330.7 percent to US$61.65 million,” he said.
“Total expenses for the first half of 2015 are 4.6 percent lower, at US$95.95 million, than the total expenses reported for the same period in 2014 despite business growth,” said HRH Prince Amr. “This is a result of cost control measures which started in 2014,” he said.
“I am also pleased to report that the balance sheet continues to grow,” said HRH Prince Amr. “Total assets increasing to US$8.6 billion as at 30 June 2015, and increase of 9.4 percent compared to US$7.86 billion as at 31 December 2014, and 12.6 percent compared to US$7.63 billion as at 30 June 2014,” he said.
Ithmaar Bank Chief Executive Officer, Ahmed Abdul Rahim, said the 2015 half-yearly financial showed growing customer confidence in the Bank.
“The equity of unrestricted investment account holders has increased to US$2.18 billion as at 30 June 2015, an increase of 8.8 percent compared to $2 billion as at 31 December 2014, and of 10.8 percent compared to US$1.97 billion as at 30 June 2014,” said Abdul Rahim. “Customer current accounts have also increased to US$1.49 billion as at 30 June 2015, an increase of 8.6 percent compared to US$1.37 billion as at 31 December 2014. Liquid assets form 12.5 percent of the Bank’s total assets as at 30 June 2015, increased from 11.3 percent as at 31 December 2014,” he said.
“The financial results for 2015 are very encouraging and demonstrate our ongoing success as we work towards realising our shared vision of becoming one of the region’s premier Islamic retail bank,” said Abdul Rahim. “This success is due, in a large part, to listening closely to our customers and working to exceed their expectations by introducing new products and services while improving customer satisfaction,” he said.
Ithmaar Bank recently introduced a new pre-paid electronic card which allows customers to top-up their cards in real time and make their online shopping experience safer and more convenient than ever before.
Ithmaar Bank also recently earned a prestigious Straight Through Processing Excellence Award from Standard Chartered Bank in recognition of Ithmaar Bank’s 94.5 percent efficiency in the execution of electronic payments during 2014.
Ithmaar had, earlier this year introduced Bahrain’s most rewarding Credit Cards loyalty programme “Ithmaar Rewards”, a new rewards programme for its MasterCard credit card holders. This rewards programme is by far the most comprehensive of its kind, and promises to further improve the Ithmaar Bank customer experience.