Ithmaar Bank reports profit

TDT | Manama

The Daily Tribune – www.newsofbahrain.com

Ithmaar Bank, a Bahrain-based Islamic retail bank, reported profits for the fourth quarter of 2021.

The fourth-quarter net profit attributable to equity holders was BD2.11 million compared to the net loss of BD11.11 million reported for the same period in 2020.

The total net profit was BD3.82 m compared to the BD10.26 m net loss reported for the same period in 2020.

Despite the profit for the quarter results, the Bank reported a net loss attributable to equity holders for the year ended 31 December 2021 of BD0.51 m, a 97% reduction compared to the net loss of BD15.29 m reported for 2020.

The total net profit was BD5.16 m compared to the net loss of BD10.97 m reported for 2020.

This improvement, with a significant reduction in losses, is due mainly to the gradual economic recovery in 2021 from the effects of the global Covid-19 pandemic resulting from lower impairment provisions compared to the previous year.

“On behalf of the Ithmaar Bank Board of Directors, I am pleased to report that Ithmaar Bank’s commitment to focus on its core Islamic banking business has borne fruit, effectively turning the Bank’s financial performance around,” said Ithmaar Bank Chairman Prince Amr Al Faisal.

Ithmaar Bank Chief Executive Officer, Ahmed Abdul Rahim, said the year-end financial results show that the Bank’s efforts to continuously grow closer to its customers and enhance its Islamic banking experience had paid off.

“The results show that the group’s share of income from unrestricted investment accounts as a Mudarib increased to BD18.01 m for the three months ended 31 December 2021, a 117% increase compared to BD8.29 m for the same period in 2020.

This contributed to increasing the group’s share of income from unrestricted investment accounts as a Mudarib to BD53.48 m for the year ended 31 December 2021, a 49% increase compared to BD35.95 m for 2020,” said Abdul Rahim.

“This increase is mainly due to the increase in the Islamic financing portfolio of Faysal Bank Limited (FBL), our subsidiary in Pakistan, and a testimony for our strong core income potential,” he said.

Ithmaar Holding announces 2021 profits

Ithmaar Holding reported net profit attributable to equity holders for the three months ended 31 December 2021 of US$37.13 million compared to the net loss of US$38.43 m reported for the same period in 2020.

Earnings Per Share were US Cents 1.28, compared to negative US Cents 1.32 for the same period in 2020.

The total net profit was US$44.59 m compared to the net loss of US$30.26 m reported for the same period in 2020. Accumulated losses, as of 31 December 2021, stood at US$798.79 m and amount to 105% of the share capital.

In January 2022, Ithmaar Holding and Al Salam Bank announced an agreement on the acquisition by Al Salam Bank of the consumer banking business in Bahrain of Ithmaar Holding’s subsidiary, Ithmaar Bank, as well as Ithmaar Holdings’ ownership stake in both BBK and Solidarity Group Holding.

Following the anticipated transaction, Ithmaar Holding will retain a well-diversified portfolio of financial assets which includes banking businesses in Bahrain and Pakistan, as well as various local and international real estate assets.

Ithmaar Bank will remain a wholly-owned subsidiary of Ithmaar Holding.

Full-year results

The total net profit attributable to equity holders for the year ended 31 December 2021 was US$38.60 m compared to the net loss of US$41.72 m reported for 2020. The increase is mainly due to the growth in core income.

EPS was US Cents 1.33, compared to negative US Cents 1.43 for 2020. The total net profit was US$60.32 m compared to the net loss of US$21.48 m reported for 2020