Ithmaar Bank, a Bahrain-based Islamic retail bank, has posted a net loss of BD0.71 million ($1.87 million) for the first nine months of the year, a 114% decrease compared to the net profit of BD5.28 million reported for the same period in 2019.
Net loss for the three-month period ended 30 September 2020 was BD0.92 million, compared to a net profit of BD1.19 million reported for the same period in 2019.
Ithmaar Bank’s financial results show a net loss attributable to equity holders for the nine-month period ended 30 September 2020 of BD4.18 million compared to the net profit of BD2.67 million reported for same period in 2019. The loss is mainly due to prudent impairment provisions as a result of the economic impact of the Covid-19 pandemic, a bank statement said.
The bank’s financial results show a net loss attributable to equity holders for the three-month period ended 30 September 2020 of BD2.15 million compared to a net profit of BD0.56 million for the same period in 2019.
The bank’s financial results show a net loss attributable to equity holders for the three-month period ended 30 September 2020 of BD2.15 million compared to a net profit of BD0.56 million for the same period in 2019.
Prince Amr Al Faisal, Chairman of Ithmaar Bank, said: “On behalf of the Ithmaar Bank Board of Directors, I am pleased to report that, despite the unprecedented challenges of the global pandemic, the Bank continues to grow its core business. This is, in large part, a result of the Bank’s unwavering commitment to focus on its determination to become one of the region’s leading retail banks.
“Ithmaar Bank is a growing, resilient bank that continues to invest in the future and plays a key role in the community. Although the Bank did not report a profit attributable to equity holders for the period, it continues to demonstrate significant resilience to challenging market conditions,” said HRH Prince Amr. “Customer deposits, for example, continue to grow despite the extraordinarily turbulent economic conditions, a strong testimony to the market’s confidence in the Bank,” he said.
Total income for the nine-month period ended 30 September 2020 was BD129.98 million, a 6 percent increase compared to the total income of BD122.59 million reported for the same period in 2019, mainly due to increases in core income, particularly the Bank’s share of income earned as a Mudarib and higher income from Government securities. Total income for the three-month period ended 30 September 2020 was BD36.72 million, a 15 percent decrease compared to the total income of BD43.41 million reported for the same period in 2019.
Operating income for the nine-month period ended 30 September 2020 was BD70.55 million, an 18 percent increase compared to the BD59.91 million reported for the same period in 2019. Operating income for the three-month period ended 30 September 2020 was BD20.38 million, a 4 percent increase compared to the total income of BD19.55 million reported for the same period in 2019.
“Despite challenging market conditions, the equity of unrestricted investment account holders grew to BD1.19 billion as at 30 September 2020, a 12 percent increase compared to BD1.06 billion as at 31 December 2019. Customers’ current accounts also grew to BD623 million as at 30 September 2020, a 9 percent increase compared to BD572 million as at 31 December 2019,” said Ithmaar Bank Chief Executive Officer, Ahmed Abdul Rahim.
The growth in customer deposits, particularly during these difficult circumstances faced by all economies, reflects customer confidence in the Bank and reconfirms that efforts to grow closer to our customer are, indeed, paying off.
“Ithmaar Bank is determined to become the Islamic retail bank of choice,” said Abdul Rahim. “To help realise this, we invest tremendous time, money and effort on continuously enhancing our products and services and on growing closer to our customers to enhance their banking experience,” he said.
“The Bank’s steady focus on its core retail banking business is building a stable foundation while setting the stage for continued growth. In line with our ongoing efforts to encourage customers to bank online, the Bank launched an all-new mobile application (app). The mobile app allows users to instantly open an account directly from their mobile phones, while reducing the need to physically visit a branch. Bahraini and non-Bahraini residents can now securely open new accounts in just a few minutes by simply downloading mobile app from anywhere and at any time,” he added. – TradeArabia News Service
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