*** ----> Ithmaar reports profit | THE DAILY TRIBUNE | KINGDOM OF BAHRAIN

Ithmaar reports profit

I thmaar Holding, a Bahrain-based financial institution, and its wholly-owned subsidiary, Ithmaar Bank, a Bahrain-based Islamic retail bank, each announced their financial results for the third quarter of 2018 with both reporting profits. The increase in net profit is attributed mainly to higher impairment provision in the previous period resulting from classification of an associate to held-for-sale. Ithmaar Holding reported a net profit of US$11.34 million for the nine-month period ended 30 September 2018, as compared to a net loss of US$16.25m for the same period in 2017.

Net profit attributable to equity holders was US$2.73m, as compared to the US$27.04m net loss reported for the same period in 2017. Earnings per share increased to US Cents 0.09 compared to negative US Cents 0.93 for the same period in 2017. For the third quarter, net profit was US$0.51m, compared to a net loss of US$14.66m for the same period in 2017. Net loss attributable to equity holders was US$2.12m for the three-month period ended 30 September 2018, as compared to a net loss of US$17.80m reported for the same period in 2017.

EPS increased to negative US Cents 0.07 compared to negative US Cents 0.61 in the same period of 2017. “The 2018 results show that total income for the nine-month period ended 30 September 2018 increased to US$334.52m, a 10.6pc increase from the US$302.34m reported for the same period last year. This included total income of US$109.09m for the three-month period ended 30 September 2018, a 15.7pc increase compared to US$94.27m reported for the same period last year. This was mainly due to higher share of profit after tax from associates resulting from reclassification from held-for-sale to associate during the period,” said Prince Amr.

Ithmaar Holding Chief Executive Officer, Ahmed Abdul Rahim, who is also the Ithmaar Bank Chief Executive Officer, said the financial performance of both institutions demonstrate that efforts to turn the Group around are paying off. “Ithmaar Holding’s balance sheet remained stable with total assets at US$7.99 billion as at 30 September 2018, compared to US$8.61bn as at 31 December 2017,” said Abdul Rahim. “Ithmaar Bank’s financial results show a net profit of BD4.76m for the nine-month period ended 30 September 2018, a decrease of 17.8pc compared to a net profit of BD5.79m for the same period in 2017,” said Abdul Rahim.

“The results included a net profit of BD1.15m of the threemonth period ended 30 September 2018, a decrease of 18.3pc compared to a net profit of BD1.41m for the same period in 2017,” said Abdul Rahim. “Core income continued to grow in 2018, with Group’s share of income from unrestricted investment accounts increasing BD20.86m for the ninemonth period ended 30 September 2018, a 6.6pc increase from the BD19.56m reported for the same period last year. Income from murabaha and other financings also increased to BD50.11m, a 7.9pc increase from the BD46.45m reported for the same period last year,” said Abdul Rahim.