Ithmaar Bank subsidiary, posts higher profits in H1

Manama : Ithmaar Bank, a Bahrain-based Islamic retail bank, announced yesterday that its retail banking subsidiary in Pakistan, Faysal Bank Limited (FBL), has reported higher profits for the first half of 2017. 

Ithmaar Bank owns 66.6 per cent of FBL which is listed on the Pakistan Stock Exchange and is mainly engaged in corporate, commercial, retail and consumer banking activities.

The announcement, by Ithmaar Bank Chief Executive Officer and FBL Vice Chairman, Ahmed Abdul Rahim, follows the review and approval by the FBL Board of Directors of the financial results for the half year ended June 30, 2017. 

“I am pleased to announce that FBL registered a profit after tax of US$27.2 million (PKR 2.86 billion) during the first half of 2017, compared to a profit of US$26.8 million (PKR 2.82 billion) during the corresponding period in 2016,” said Abdul Rahim. 

“Although the Government of Pakistan has imposed a one-time Super Tax in the annual budget which has affected the bottom line by US$2.4 million (PKR 259 million), the Bank’s Earnings per Share (EPS) for the first half of 2017 increased to PKR2.17 as compared to PKR2.14 for corresponding period last year,” he added. 

The Bank’s deposits have reached US$ 3.4 billion, and assets have crossed the US$4.6 billion mark with a capital base of more than US$300 million. 

FBL’s financial performance has earned the Bank “AA” and “A1+” ratings for the long and short terms respectively, with stable outlook from JCR-VIS Credit Rating Company Limited and Pakistan Credit Rating Agency Limited. 

“I am pleased, also, to note that in October, Ithmaar Bank will mark thirty years of operations in Pakistan,” said Abdul Rahim. Ithmaar Bank first commenced its operations in Pakistan in October 1987 under its initial predecessor, Faysal Islamic Bank of Bahrain.