Ithmaar Bank posts Q3 results | THE DAILY TRIBUNE | KINGDOM OF BAHRAIN

Ithmaar Bank posts Q3 results

TDT | Manama

The Daily Tribune – www.newsofbahrain.com

Ithmaar Bank, a Bahrain-based Islamic retail bank, yesterday announced its third-quarter financial results, which the bank’s Chairman Prince Amr Al Faisal said is confidence-inspiring.

He said that despite the unprecedented challenges of the global pandemic, the Bank continues to grow its core business. “This is, in large part, a result of the Bank’s unwavering commitment to focus on its determination to become one of the region’s leading retail banks,” he added.

The bank reported a third-quarter net loss attributable to equity holders of BD2.15 million compared to a net profit of BD0.56 m for the same period in 2019.

Quarterly net loss was BD0.92 m, compared to a net profit of BD1.19 m report for the same period in 2019.

Total income was BD36.72 m, a 15 per cent decrease compared to the total income of BD43.41 m reported for the same period in 2019.

Q3 Operating income was BD20.38 m, a 4 pc increase compared to the total income of BD19.55 m reported for the same period in 2019.

Nine-month results

Nine-month net loss attributable to equity holders was BD4.18 m compared to the net profit of BD2.67 m reported for the same period in 2019. The bank attributed the loss mainly to prudent impairment provisions as a result of the economic impact of the Covid-19 pandemic.

Net loss was BD0.71 m, a 114 pc decrease compared to the net profit of BD5.28 m reported for the same period in 2019.

“Ithmaar Bank is a growing, resilient bank that continues to invest in the future and plays a key role in the community. Although the Bank did not report a profit attributable to equity holders for the period, it continues to demonstrate significant resilience to challenging market conditions,” said HRH Prince Amr. “Customer deposits, for example, continue to grow despite the extraordinarily turbulent economic conditions, a strong testimony to the market’s confidence in the Bank,” he said.
Total income was BD129.98 m, a 6 pc increase compared to the total income of BD122.59 m reported for the same period in 2019, mainly due to increases in core income, particularly the Bank’s share of income earned as a Mudarib and higher income from Government securities. Total Operating income was BD70.55 m, an 18 pc increase compared to the BD59.91 m reported for the same period in 2019.

“Despite challenging market conditions, the equity of unrestricted investment account holders grew to BD1.19 billion as at September 30, 2020, a 12 pc increase compared to BD1.06 billion as of 31 December 2019. Customers’ current accounts also grew to BD623 m as at 30 September 2020, a 9 pc increase compared to BD572 m as at 31 December 2019,” said Ithmaar Bank Chief Executive Officer, Ahmed Abdul Rahim.

“The Bank’s steady focus on its core retail banking business is building a stable foundation while setting the stage for continued growth,” said Abdul Rahim.

Meanwhile Ithmaar Holding (ITHMR), a Bahrain-based holding company, reported a net loss attributable to equity holders for the third quarter of USD 1.99 million compared to the net profit of USD 3.68 m in the year-ago quarter.

Earnings Per Share (EPS) was negative US cents 0.07, compared to positive US cents 0.13 for the same period in 2019.

Three-month net profit was USD1.4 m, a 77 per cent decrease compared to the net profit of USD 5.9 m reported for the same period in 2019.

Nine-month results

Nine-month net loss attributable to equity holders was USD 3.29 m compared to the net profit of USD 12.04 m in the year- ago period. The company attributed the decrease mainly to the economic impact of the Covid-19 pandemic.

EPS was negative US cents 0.11, compared to positive US cents 0.41 for the same period in 2019. Overall, the company’s results show a net profit of USD 8.78 m, a 54 pc decrease compared to the net profit of USD 18.89 m reported for the same period in 2019.
Accumulated losses, as at September 30, 2020, of USD 797.6 m amounted to 105 pc of the share capital, compared to 98.5 pc as at December 31, 2019.

Sale, restructuring

The company said its board of directors was working on various initiatives to improve the capital, including the possible sale or restructuring of underlying non-core assets.

As part of this strategy, Ithmaar Holding and The Bank of Bahrain and Kuwait (BBK) signed during September 2020 a Memorandum of Understanding (MoU) on the potential acquisition by BBK of Ithmaar Bank’s Bahrain operations as well as specific assets of IB Capital, a wholly-owned subsidiary of Ithmaar Holding.

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