15/05/2016 07:55 AST
Ithmaar Bank, a Bahrain-based Islamic retail bank, yesterday reported a net profit of $4.83 million for the first quarter of 2016, compared with $7.62m during the same period last year.
Net profit attributable to equity holders of the bank for the first quarter was $1.22m, which is lower by 54 per cent compared with $2.64m profit for the same period last year.
The announcement by chairman Prince Amr Al Faisal follows the review and approval by the board of directors of the bank’s consolidated financial results for the three-month period ended March 31.
“I am pleased to announce that Ithmaar Bank is continuing to work towards our shared vision of becoming the region’s premier Islamic retail bank, and that the bank’s core retail business continues to perform well,” said Prince Amr.
“The financial results include an operating income of $61.48m, compared with $83.34m for the first quarter last year which included a one-off gain realised on government securities by our Pakistan subsidiary, Faysal Bank Limited,” he said.
“Total expenses reduced to $45.62m, from $48.94m, despite continued retail banking branch expansion,” said Prince Amr. “This significant achievement is, in a large part, due to the ongoing cost control measures which started in 2014 both in Bahrain and Pakistan operations,” he said.
Chief executive Ahmed Abdul Rahim said the bank continues to remain focused on enhancing its products and services while growing closer to its customers and that as a result, the bank’s core retail banking business continues to grow.
“I am pleased to report that the balance sheet continues to be stable, and our core business continues to grow,” said Mr Abdul Rahim.
“This is evident from the equity of unrestricted investment account holders growing to $2.29 billion as at March 31, a 10pc increase compared with $2.09bn as at March 31, 2015, and a 4.3pc increase compared with $2.20bn as at December 31 last year,” he said.
“This increase is further evidence of customers’ continued confidence in Ithmaar Bank,” said Mr Abdul Rahim. “Correspondingly, our total financing portfolio grew to $3.73bn, a 7.5pc increase compared with $3.47bn as at March 31, 2015 and a marginal increase as compared with $3.72bn as at December 31, 2015. Liquid assets now represent 11.6pc of total assets compared to 10.6pc as at 31 December 2015,” he said.
In April, Ithmaar Bank re-launched its popular prize-based saving account, Thimaar, to include one of the largest number of prizes in Bahrain, gave away the first luxurious car to a Thimaar customer. The bank also announced 185 other winners for the March monthly draw, including a $10,000 prize winner, while another 92 Thimaar account holders won $1,000 each and 92 Thimaar Junior winners won $200 each in the daily draws. The Thimaar savings account was launched with a new scheme offering customers 4,000 prizes – one of the highest in Bahrain, totalling $2.3m throughout the year.
Meanwhile, the bank continues to expand its retail banking network, and will shortly inaugurate a new, full-service branch in Galali – its 18th in the kingdom. The bank is also in the process of adding two new ATMs, bringing the total number to 48.
Earlier, shareholders approved plans for a new group structure to further develop the growth achieved in core retail banking business and the strategic focus of the bank.
The plans involve the creation of a new holding company that will be listed on Bahrain Bourse and Kuwait Stock Exchange and licensed and regulated by the Central Bank of Bahrain (CBB). The new holding company will retain 100pc ownership of all assets presently owned by Ithmaar Bank. These assets will be allocated into two wholly owned subsidiaries, an Islamic retail bank which will hold the core retail banking business, and an asset management subsidiary which will hold the investment assets.
Gulf Daily News
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