Ithmaar Holding posts profit on higher core income

TDT | Manama                                                             

The Daily Tribune – www.newsofbahrain.com

Ithmaar Holding, a Bahrain-based holding company, reported a swing to profit in the second quarter, helped mainly by increases in core income. Profit for the first half jumped 127%. The results were announced by Ithmaar Holding Chairman His Royal Highness Prince Amr Al Faisal, following the review and approval of the Board of Directors of the Company’s consolidated financial results.

Q2 results

The second quarter net profit attributable to equity holders was US$7.94 million compared to the net loss of US$4.85 m in the year-ago quarter, mainly due to an increase in core income.

Total net profit was US$11.66 m compared to a net loss of US$0.89 m reported for the same period in 2021. Earnings Per Share was US Cents 0.27, compared to negative US Cents 0.17 for the same period in 2021.

H1 results

Six-month net profit attributable to equity holders was US$9.08 m, an increase of 127% from US$4 m reported for the same period in 2021.

Total net profit was US$18.13 m compared to the net profit of US$12.96 m reported for the same period in 2021. EPS was US Cents 0.31, compared to US Cents 0.14 for the same period in 2021. In 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 a foreign exchange translation impact of US$32 m from Ithmaar Holding’s subsidiary in Pakistan, Faysal Bank Limited. Accordingly, Ithmaar Holding’s total owners’ equity decreased to US$6.04 m as of 30 June 2022, an 84.0% decrease compared to US$37.76 m as of 31 December 2021. Accumulated losses reduced to US$790.44 m as of 30 June 2022 and amount to 104.3% of the share capital, compared to US$798.79 m as of 31 December 2021.

Total assets stood at US$8.96 billion as of 30 June 2022, a marginal decrease of 0.8% compared to US$9.03 billion as of 31 December 2021. Ithmaar Holding now retains a portfolio of international and local financial and other assets, which include banking businesses in Bahrain and Pakistan. 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.

Ithmaar Bank profits jump

Ithmaar Bank, a Bahrain-based Islamic bank, reported profits for the first half of the year, which the bank attributed to increases in core income. Net profit attributable to equity holders of the Bank for the three-month ended 30 June 2022 was BD1.30 million compared to the net profit of BD0.38 m in the year-ago quarter. Total profit was BD2.02 m, up from BD1.86 m in the prior-year quarter. Six-month net profit attributable to equity holders rose to BD1.49 m from BD0.53 m in the previous-year period.

Total profit was BD3.52 m, compared to BD3.41 m a year ago. “On behalf of the Ithmaar Bank Board of Directors, I am pleased to report that the Bank continues to report profits for the year as it starts its next phase of evolution as an exclusively corporate-focused Islamic bank,” said Ithmaar Bank Chairman HRH Prince Amr Al Faisal.

“This new phase marks an important milestone in the Group’s transformation, and adds to our decades-long history as key pioneers of the region’s Islamic banking and finance industry,” he said. Ithmaar Bank Chief Executive Officer Ahmed Abdul Rahim said the latest financial results show that the Bank is building its new growth phase on a strong footing, and is perfectly positioned to best capitalise on the exciting challenges and growth opportunities that lie ahead in the corporate banking space in the Kingdom of Bahrain and ample Islamic financial sector opportunities in Pakistan.

“The result shows that the Bank’s share of income from unrestricted investment accounts as a Mudarib for the six months ended 30 June 2022 increased to BD36.21 m, an 84% increase compared to the BD19.70 m reported for the same period last year,” said Ahmed Abdul Rahim.

“Total owners’ equity decreased to BD33.16 m as of 30 June 2022, a 24.2% decrease from BD43.73 m as of 31 December 2021,” said Abdul Rahim. “This is largely due to the Bank being significantly impacted by foreign exchange rate movements from its subsidiary in Pakistan, Faysal Bank Limited, with the Pakistan Rupee-US Dollar parity depreciating significantly during the year resulting from strengthening of US Dollar against other global currencies, coupled with the political situation in Pakistan,” he said.