Ithmaar B S C : Bank announces half-year profits

MANAMA, BAHRAIN - 28 August 2022 - Ithmaar Bank B.S.C. (closed), a Bahrain-based Islamic bank, reported profits for the first half of the year as it announced its financial results for the six-month period ended 30 June 2022.

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.

The results show a net profit attributable to equity holders of the Bank for the three-month period ended 30 June 2022 of BD1.30 million compared to the net profit of BD0.38 million reported for the same period in 2021, mainly due to increase in core income. Total profit for the three-month period ended 30 June 2022 was BD2.02 million, compared to a net profit of BD1.86 million for the same period in 2021, mainly due to increase in core income.

The results also show a net profit attributable to equity holders for the six-month period ended 30 June 2022 of BD1.49 million, compared to a net profit of BD0.53 million for the same period in 2021. Total profit for the six-month period ended 30 June 2022 was BD3.52 million, compared to a net profit of BD3.41 million 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 starts its next phase of evolution as an exclusively corporate-focused Islamic bank," said HRH 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 will continue as a CBB-licensed Islamic bank that is wholly-owned by Ithmaar Holding and specialised in Corporate Banking and related services. The assets and liabilities subject to the above transaction have been presented separately as 'held-for-sale' in the consolidated financial information in accordance with the relevant accounting standards.

Ithmaar Bank Chief Executive Officer said 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 six-month period ended 30 June 2022 increased to BD36.21 million, a 84 percent increase compared to the BD19.70 million reported for the same period last year," said Abdul Rahim.

"Total owners' equity decreased to BD33.16 million as at 30 June 2022, a 24.2 percent decrease from BD43.73 million as at 31 December 2021," said Abdul Rahim. "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," he said.