Ithmaar Bank Reports Resilient Half-Year Performance

Ithmaar Bank B.S.C. (Closed), a Bahrain-based Islamic retail bank, reported profits for the first half of 2026 as it announced its financial results for the six-month period ended 30 June 2026.

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 2026 of BD0.8 million, compared to the net profit of BD1.47 million reported for the same period in 2025. Total net profit for the three-month period ended 30 June 2026 was BD2.7 million, compared to BD3.33 million reported for the same period in 2025. The decrease is primarily attributable to lower benchmark rates impacting spreads generated by the Bank’s overseas operations. 

The results also show a net profit attributable to equity holders for the six-month period ended 30 June 2026 of BD2.2 million, compared to a net profit of BD2.80 million reported for the same period in 2025. Total net profit for the six-month period ended 30 June 2026 was BD6.4 million, compared to BD7.10 million reported for the first half of 2025. 

“On behalf of Ithmaar Bank’s Board of Directors, I am pleased to report that the Bank continued to deliver stable profitability during the first half of 2026 despite a lower benchmark rate environment and the challenging market conditions,” said HRH Prince Amr. “The results reflect the resilience of the Bank’s business model and the continued strength of its core Islamic banking franchise in Bahrain and Pakistan. The Bank remains focused on sustainable growth, prudent risk management and enhancing the value of its strategic investments while navigating a changing economic landscape,” he said.

Ithmaar Bank Chief Executive Officer, Maysan Al Maskati, said the results demonstrate the Bank’s ability to effectively manage earnings pressures through disciplined balance sheet and funding management. 

“While lower benchmark rates in our overseas operations continued to impact operating income compared to the previous year, the Bank remained profitable while maintaining stable liquidity position,” said Al Maskati. “Our continued focus on optimising the funding mix, enhancing low-cost deposit mobilisation and carefully managing funding costs helped mitigate the impact of the lower rate environment. These efforts have reinforced the resilience of our earnings profile and positioned the Bank to continue delivering sustainable long-term value.”

“The Bank’s fundamentals remain strong, supported by a stable funding base, prudent liquidity management and continued customer confidence,” said Almaskati. “We also continued to strengthen our balance sheet and enhance operational efficiency while maintaining our commitment to serving our customers and supporting economic growth in our core markets,” he said.

Deposit mobilisation initiatives and funding optimisation efforts remained key priorities during the period, supporting the Bank’s strategy of strengthening its funding base. As a result, total Quasi-equity increased to BD1.40 billion as at 30 June 2026 compared to BD1.32 billion as at 31 December 2025, an increase of 6.5 per cent reflecting the Bank’s continued focus on customer liabilities growth and sustained customer confidence. 

“Looking ahead, we remain focused on growing our core businesses, strengthening customer relationships and pursuing opportunities that support sustainable profitability and shareholder value creation,” said Al Maskati. “Supporting our ambitious future strategy, the Bank is well positioned to navigate changing market conditions and capitalise on opportunities as they arise.”