BAHRAIN: Ithmaar Bank Returns To Profit In First Nine Months Of 2014

Ithmaar Bank, a Bahrain-based Islamic retail bank, reported total net profit of $4.84 million for the nine-month period ended 30 September 2014, compared to a net loss of $11.97 million reported for the same nine-month period last year. Net profit for the three month period ended 30 September 2014 amounted to $3.06 million, as compared to net loss of $4.45 million reported for the three month period ended 30 September 2013.

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Net profit attributable to equity holders of the bank for the nine-month period ended 30 September 2014 amounted to $1.14 million, compared to a net loss of $12.79 million reported in the same period last year. Net profit attributable to equity holders of the bank for the three month period ended 30 September 2014 amounted to $1.26 million, as compared to net loss of $5.15 million reported for the three month period ended 30 September 2013.
“On behalf of the Ithmaar Bank Board of Directors, I am pleased to announce that Ithmaar Bank has reported profit and continues to grow its core retail banking operations,” said Chairman His Royal Highness Prince Amr Al Faisal Prince Amr. “The financial results show stable, consistent growth in Ithmaar Bank’s performance,” he said.
“In particular, I am pleased to announce that net income, before provisions for impairment and overseas taxation, has increased by 270 percent to $29.93 million during the nine month period ended 30 September 2014, compared to $8.10 million during the same period last year,” said HRH Prince Amr. “This increase is mainly due to sustainable revenue growth across most income streams,” he said.
“Our improved performance is evident from the growth in operating income, which increased by 17 percent to $176.55 million, compared to $150.56 million reported during the same period last year,” said HRH Prince Amr. “Total expenses for the nine-month period ended 30 September 2014, at $146.62 million, are 2.92 percent higher than the same period in 2013, mainly due to the one-off expenses associated with the Staff Voluntary Separation Scheme and the full year impact in 2014 of certain branches opened in 2013 in Pakistan,” he said.
“The equity of unrestricted investment account holders has increased by 5.4 percent to $1.98 billion as compared to $1.88 billion as at 30 September 2013 and has remained stable at $1.99 billion as of 31 December 2013. The Bank continues to reduce its cost of funding as part overall cost reduction initiative. Customer current accounts have increased to $1.29 billion as at 30 September 2014, an increase of 10.08 percent compared to $1.18 billion as at 30 September 2013 and increase of 1.8 percent compared to $1.27 billion as at 31 December 2013, mainly due to the Bank’s continued focus on developing its core retail banking business and raising low cost funds. Liquid assets now represent 13.1 percent of the balance sheet as at 30 September 2014,” he said.
Ithmaar Bank Chief Executive Officer, Ahmed Abdul Rahim, said “The 2014 financial results show stable, consistent growth in our core Islamic retail banking operations and continue to reflect improving operational efficiencies and increasing profitability. Murabaha and other financing increased to $3.22 billion as at 30 September 2014, an increase of 2.8 percent from $3.13 billion as at 30 September 2013 and increase of two percent from $3.15 billion as at 31 December 2013,” he said.
“Our key subsidiary, Faysal Bank Limited (FBL), with its 269 branches, is amongst the top 10 banks in Pakistan. Ithmaar Bank currently holds about 67% of Faisal Bank Limited, Pakistan (FBL). During the year, Ithmaar increased its representation of the Board of FBL to five directors out of eight directors. The new Board of Directors of FBL introduced several major changes in the bank including management structure, business transformation and major cost saving initiatives. Such developments will positively reflect on the bank’s performance in the coming years starting from 2015,” said Abdul Rahim.

Originally published on www.cpifinancial.net