Ithmaar Bank swings to profit

TDT | Manama

The Daily Tribune – www.newsofbahrain.com

Ithmaar Bank, a Bahrain-based Islamic bank, reported profits for the third quarter and nine-month period ended 30 September 2022, helped mainly by increase in core income.

The announcement, by Ithmaar Bank Chairman His Royal Highness Prince Amr Al Faisal, follows the review and approval of the Board of Directors of the Bank’s consolidated financial results.

Q3 results

Third quarter net profit attributable to equity holders of the bank was BD9.90 million compared to net loss of BD3.16 m in the year-ago quarter, mainly due to increase in core income.

Total profit was BD11.69 m, compared to a net loss of BD2.07 m for the same period in 2021.

Nine-month results

Net profit attributable to equity holders was BD11.39 m, compared to a net loss of BD2.62 m for the same period in 2021. Total profit was BD15.21 m, compared to a net profit of BD1.34 m for the same period in 2021.

“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 has started the next phase of growth as an exclusively corporate-focused Islamic bank,” said Prince Amr.

“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.

This follows completion of the transaction on 7 July 2022, which involved Ithmaar Holding, Ithmaar Bank’s parent company, selling some of its key assets in Bahrain, including Ithmaar Bank’s consumer banking business as well as Ithmaar Holdings’ ownership stake in BBK and Solidarity Group Holding, to Al Salam Bank.

Following the transaction, which was approved by Ithmaar Holding shareholders at an Extra Ordinary General Meeting on 17 March 2022, Ithmaar Bank continues to operate as a CBB-licensed Islamic bank that is wholly-owned by Ithmaar Holding and specialised in Corporate Banking and related services.

The latest financial results show that the Bank is building its new growth phase on 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 show that the Bank’s share of income from unrestricted investment accounts as a Mudarib for the nine-month period ended 30 September 2022 increased to BD54.42 million, an 85 percent increase compared to the BD29.46 million reported for the same period last year.

Total owners’ equity decreased to BD32.10 m as at 30 September 2022, a 27% decrease from BD43.73 m as at 31 December 2021.

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.