Ithmaar Bank continues to report increasing profits - Further improvements on already strong liquidity

Nov 11, 2019 1:38 PM

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 for the nine-month period ended 30 September 2019.

Ithmaar Bank’s financial results show a net profit attributable to equity holders of the Bank for the nine-month period ended 30 September 2019 of BD2.67 million, an increase of 70.6 percent compared to the net profit of BD1.56 million reported for the same period in 2018. Total net profit for the nine-month period ended 30 September 2019 BD5.28 million, an increase of 10.9 percent compared to a net profit of BD4.76 million for the same period in 2018.

“On behalf of the Ithmaar Bank Board of Directors, I am pleased to report that the Bank continues to consistently report increased profits,” said HRH Prince Amr. “This is testimony to the fact that the Bank’s efforts to grow closer to customers and enhance their banking experience are clearly paying off,” he said.

“The Bank’s financial results for period also show a significant increase in profits reported for the three-month period ended 30 September 2019,” said HRH Prince Amr. “The Bank’s financial results for the period include a net profit of BD1.19 million for the three-month period ended 30 September 2019, an increase of 2.8 percent compared to a net profit of BD1.15 million for the same period in 2018. The net profit attributable to equity holders for the three-month period ended 30 September 2019 was BD0.56 million, a 196 percent increase compared to the net profit of BD0.19 million reported for the same period in 2018,” he said.

“Total income for the nine-month period ended 30 September 2019 was BD122.59 million, a 9.6 percent increase compared to the BD111.82 million reported for the same period in 2018. This included a total income for the three-month period ended 30 September 2019 BD43.41 million, a 14.8 percent increase compared to BD37.81 million reported for the same period in 2018,” said HRH Prince Amr. “Operating income for the nine-month period ended 30 September 2019 was BD59.91 million, a 4.6 percent decrease compared to BD62.79 million reported for the same period in 2018. This included a total income for the three-month period ended 30 September 2019 was BD19.55 million, a 5.0 percent decrease compared to the BD20.59 million reported for the same period in 2018,” he said.

Ithmaar Bank Chief Executive Officer, Ahmed Abdul Rahim, said the growing profits are a reflection on the Bank’s commitment to focusing on continuously enhancing its customers’ banking experience.

“Ithmaar Bank’s balance sheet has marginally reduced, with total assets at BD2.93 billion as at 30 September 2019, a 6.2 percent decrease compared to BD3.13 billion as at 31 December 2018,” said Abdul Rahim. “Total owners’ equity stood at BD80.37 million as at 30 September 2019, a 5.9 percent decrease compared to BD85.39 million as 31 December 2018, resulting mainly from the devaluation of Pakistan Rupee.,” he said.

“Despite challenging market conditions, the Bank increased its equity of unrestricted investment accountholders to BD1,042.69 million as at 30 September 2019, a 4.8 percent increase compared to BD994.78 million as at December 2018,” said Abdul Rahim. “This improved liquidity reflects the confidence of our loyal customers, the Bank’s prudent financial policies and its ability to adapt to market conditions,” he said.

“Ithmaar Bank is committed to becoming one of the region’s premier retail banks,” said Abdul Rahim. “It is a commitment we take very seriously, and our results show that, despite challenging market condition, we are on the right path and our efforts to continuously enhance our customers’ banking experience are paying off,” he said.

Earlier this year, Ithmaar Bank was named “Best Bank for Personal Finance in Bahrain” by the World Union of Arab Bankers (WUAB) at a high-profile ceremony hosted in Beirut, Lebanon, and attended by senior bankers from across the Middle East. Ithmaar Bank earned the prestigious award following a comprehensive selection and review process that was conducted by a committee of high-level economists and banking professionals, as well the research department of the Union of Arab Banks (UAB) and the WUAB.

Ithmaar Bank has also announced the launch of a customer-centric chat service on WhatsApp Business social media platform that will help improve its customers’ banking experience. Following the launch, Ithmaar Bank customers can request information about Ithmaar Bank products and services, as well as make general enquiries about branch locations and timings, ATM locations, Thimaar draw dates and winners list, as well as ongoing promotions and campaigns. The launch of the chat service on WhatsApp Business is part of Ithmaar Bank’s committed, bank-wide digital initiative which aims to build on the Bank’s history of innovation. Most recently, for example, this included the launch of the region’s first biometric-enabled ATM network.

In October, as part of its efforts to continuously improve its customers’ banking experience, Ithmaar Bank inaugurated a new branch in Muharraq. The branch, which is more accessible and offers better parking facilities than Ithmaar Bank’s earlier branch in Muharraq, was commissioned in response to customer demands and underscored how seriously the Bank takes customer feedback. The new branch maintains Ithmaar Bank’s network of 16 branches and 42 ATM machines, one of the largest retail banking networks in Bahrain.

Ithmaar Bank’s subsidiary, Faysal Bank Limited, one of the largest retail banks in Pakistan, has also reported improved performance and continues with the aggressive branch expansion program under which it has opened 208 new branches since 2016. In 2019 alone, for example, Faysal Bank Limited opened 32 new branches. The total number of branches stood at 487 as of 30 September 2019 (including 313 Islamic branches).

Ithmaar Bank is a subsidiary of Ithmaar Holding, is a Bahrain-based holding company that is listed on the Bahrain Bourse, Dubai Financial Market (DFM) and Boursa Kuwait. Last week announced its financial results for the period, reporting a profit of USD18.89 million for the period, including USD5.86 million for the three-month period ended 30 September 2019.