Ithmaar Bank posts profit: Bahrain

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Ithmaar Bank reported net profit for the three-month period ended September 30, 2022 of BD9.90 million compared to the net loss of BD3.16m reported for the same period in 2021, mainly due to increase in core income.

Total profit for the three-month period ended September 30, 2022 was BD11.69m, compared to a net loss of BD2.07m for the same period in 2021, mainly due to increase in core income.

The results also show a net profit for the nine-month period ended September 30, 2022 of BD11.39m, compared to a net loss of BD2.62m for the same period in 2021.

Total profit for the nine-month period ended September 30, 2022 was BD15.21m, compared to a net profit of BD1.34m for the same period in 2021.

Milestone

“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 Ithmaar Bank chairman 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.

This follows completion of the transaction on July 7, 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 March 17, 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 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 September 30, 2022 increased to BD54.42m, an 85pc increase compared to the BD29.46m reported for the same period last year.

Total owners’ equity decreased to BD32.10m as of September 30, 2022, a 27pc decrease from BD43.73m as of end-2021.

This is largely due to the bank being significantly impacted by foreign exchange rate movements from its subsidiary in Pakistan, Faysal Bank, with the Pakistani 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.