Ithmaar Bank approves new group structure plans

Manama

Shareholders of Ithmaar Bank, a Bahrain-based Islamic retail bank, yesterday approved  plans for a new group structure designed to further develop the growth achieved in the core retail banking business, the strategic focus of the bank.

The plans, which were proposed by the Ithmaar Bank Board of Directors, and are subject to regulatory approvals, involve the creation of a new holding company that will be listed on the Bahrain Bourse and the Kuwait Stock Exchange and licensed and regulated by the Central Bank of Bahrain (CBB).

The new holding company will retain 100 per cent ownership of all assets presently owned by Ithmaar Bank. These assets will be allocated into two wholly owned subsidiaries, an Islamic retail bank subsidiary, which will hold the core retail banking business, and an investment subsidiary, which will hold the investment assets. These two subsidiaries will also be licensed and regulated by the CBB. 

The announcement was made by Ithmaar Bank Chairman, HRH Prince Amr Al Faisal following the bank’s Extraordinary General Meeting (EGM) with shareholders, which followed the Annual General Meeting (AGM).

Also present at the meetings, held at the Ramee Grand Hotel in Bahrain, were Directors and members of the Ithmaar Bank Executive Management team, representatives of the Bank’s Sharia Supervisory Board, the CBB, the Ministry of Industry and Commerce, statutory auditors PricewaterhouseCoopers, and the Bahrain Bourse.

Prince Amr said, “This new structure is designed to assist in realising our long-term strategy for growth by providing greater insight into the strength of our core retail banking operations and further facilitating the management of the Group’s investment assets.”

 “It will help lower the risk profile of the new banking entity and enhance shareholder value by showing the growth and improved performance achieved in the core business,” he said.

Ithmaar Bank CEO, Ahmed Abdul Rahim, who delivered a detailed presentation to shareholders, said these plans build upon the significant improvements achieved due to the implementation of the key strategic decisions taken by the Board of Directors in 2014.

“The key decisions, which included initiatives for increased revenue, improved margins, the divestment of non-core assets, and cost reductions across the Ithmaar Group have, together with the continued growth of our core retail business, contributed in a big way to the Bank’s continuously improving financial performance,” said Abdul Rahim.