MANAMA, BAHRAIN – 13 November 2022 – Ithmaar Holding B.S.C. (Trading symbol: ITHMR), a Bahrain-based holding company, announced its financial results for the nine-month period ended 30 September 2022.
The announcement, by Ithmaar Holding Chairman His Royal Highness Prince Amr Al Faisal, follows the review and approval of the Board 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 30 September 2022 of US$7.78 million, an increase of 207 percent compared to the net loss of US$2.53 million reported for the same period in 2021. Total net loss for the three-month period ended 30 September 2022 was US$3.01 million, compared to the net profit of US$2.78 million reported for the same period in 2021. Earnings Per Share (EPS) for the three-month period ended 30 September 2022 was negative US Cents 0.27, compared to negative US Cents 0.09 for the same period in 2021.
Overall, Ithmaar Holding reported a net profit attributable to equity holders for the nine-month period ended 30 September 2022 of US$1.30 million, a decrease of 12 percent compared to the net profit of US$1.48 million reported for the same period in 2021. Total net profit for the nine-month period ended 30 September 2022 was US$15.12 million, compared to the net profit of US$15.74 million reported for the same period in 2021. EPS for the nine-month period ended 30 September 2022 was US Cents 0.04, compared to US Cents 0.05 for the same period in 2021.
During 2022, Ithmaar Holding’s financial position was adversely impacted by the strengthening of the US Dollar against other global currencies, coupled with the political situation in Pakistan, resulting in the Pakistan Rupee-US Dollar parity depreciating significantly. This depreciation has resulted in foreign exchange translation impact of US$53 million from Ithmaar Holding’s subsidiary in Pakistan, Faysal Bank Limited. Accordingly, Ithmaar Holding’s total owners’ equity decreased to US$6.28 million as at 30 September 2022, an 83.4 percent decrease compared to US$37.76 million as at 31 December 2021.
Accumulated losses reduced to US$797.49 million as at 30 September 2022 and amount to 105 percent of the share capital, compared to US$798.79 million as at 31 December 2021. Total assets stood at US$5.96 billion as at 30 September 2022, a decrease of 34 percent compared to US$9.03 billion as at 31 December 2021, mainly due to the transaction with Al Salam Bank.
At an Extraordinary General Meeting on 17 March 2022, Ithmaar Holding shareholders approved plans to sell some of the Company’s key assets in Bahrain to Al Salam Bank (Bahrain Bourse Trading Code “SALAM”, Dubai Financial Market Trading Code “SALAM_BAH”). The assets include Ithmaar Holdings’ ownership stake in both BBK (Bahrain Bourse Trading Code: “BBK”) and Solidarity Group Holding, one of the largest takaful groups globally and the parent of Solidarity Bahrain (Bahrain Bourse Trading Code: “SOLID”), as well as the consumer banking business of Ithmaar Bank, a Bahrain-based Islamic bank and a wholly-owned subsidiary of Ithmaar Holding. The transaction has been completed effective 7 July 2022.
Ithmaar Holding retains a well-diversified portfolio of international and local financial and other assets, which include banking businesses in Bahrain and Pakistan. Ithmaar Bank, which remains a wholly-owned subsidiary of Ithmaar Holding, continues to operate as an Islamic bank that is licensed and regulated by the CBB and exclusively focused on corporate banking and related services, particularly the fast- growing SME.
This press release and the full set of consolidated financial statements are available on the Bahrain Bourse website.