Ithmaar Bank reports profits for 2025

TDT | Manama

Email: mail@newsofbahrain.com

Ithmaar Bank B.S.C. (Closed), a Bahrain-based Islamic retail bank, reported profits for the year ended 31 December 2025.

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.

Ithmaar Bank reported a net profit attributable to equity holders for the year ended 31 December 2025 of BD4.40 million, a 56.6 percent decrease compared to the net profit attributable to equity holders of BD10.14 million reported for 2024. Total net profit for the year ended 31 December 2025 is BD14.38 million compared to the total net profit of BD18.80 million reported for 2024. The decrease is mainly due to reduced spreads in their overseas business resulting from the decreasing profit rate environment.

“On behalf of the Ithmaar Bank Board of Directors, I am pleased to report that Ithmaar Bank continues to deliver steady profits as we strengthen our focus on providing products and services tailored to the financial and investment needs of small and medium enterprises, corporates, and institutions,” said HRH Prince Amr. “Since 2024, the Bank’s management has worked diligently to drive growth in our core Islamic banking operations in Bahrain and Pakistan while enhancing the value of our strategic investments. The Bank has regained strong momentum and is progressing confidently toward its full potential. We remain firmly committed to achieving sustainable profitability,” he said.

Ithmaar Bank has continued to achieve growth in the face of significant challenges, according to Ithmaar Bank Chief Executive Officer, Maysan Al Maskati. Following record profits in 2024, the management’s efforts aimed at sustainable profitability for the Bank, despite prevailing market conditions, have borne fruit.

“Ithmaar Bank has delivered another year of robust performance, underscoring its commitment to sustainable growth and operational excellence,” said Al Maskati. “Our Bank’s continued progress is reflected in the significant increase in customer liabilities, with current accounts and quasi-equity balances reaching BD2.25 billion as at 31 December 2025—a notable 31.1 percent increase from BD1.71 billion the previous year. This achievement has further strengthened our liquidity position, as cash and commodity placement balances grew by 15.7 percent to BD237.45 million from BD205.21 million in the previous year,” he said.

“Our prudent management of funding costs—evidenced by a 30.6 percent reduction in profits paid to quasi-equity holders, has helped the Bank navigate the challenging market environment characterised by high benchmark rates, and offset the 17.8 percent decrease in total income,” said Al Maskati. “Additionally, our focused efforts on recovering non-performing financing have led to notable cash recoveries and a BD9.28 million year-on-year reduction in net impairment provisions,” he said.