Ithmaar Holding, Bank report H1 profit

Ithmaar Holding, a Bahrain-based holding company, and its wholly-owned subsidiary, Ithmaar Bank, a Bahrain-based Islamic retail bank, both reported increased profits for the first half of 2019. 

Ithmaar Holding reported a net profit of US$13.03 million for the six months ended 30 June 2019, a 20.4pc increase compared to the net profit of US$10.82m reported for the same period in 2018. Earnings per share (EPS) for the six months increased to US Cents 0.29 compared to US Cents 0.17 for the same period in 2018.

The net profit attributable to equity holders was US$8.37m, a 72.5pc increase compared to the net profit of US$4.85m reported for the same period in 2018.  Total income was US$246.66m, a 7.5pc increase compared to US$229.34m reported for the same period in 2018.  

Operating income was US$143.98m, a 3.2pc decrease compared to US$ 148.68m reported for the same period in 2018. 

For the three months, net profit was US$4.41m, as compared to a net profit of US$6.01m for the same period in 2018. EPS decreased to USD Cents 0.04 compared to US Cents 0.11 for the same period in 2018. Net profit attributable to equity holders was US$1.26m, a 60.6pc decrease as compared to the net profit of US$3.20m in 2018.  Total income was US$120.69m, a 4.8pc increase compared to the total income of US$ 115.19m in 2018.

Operating income was US$67.90m, an 11.3pc decrease compared to US$76.53m in 2018. “On behalf of the Ithmaar Holding Board of Directors, I am pleased to announce that the 2019 half-year results show continued profits, with significant increases compared to the profits reported in the same period last year,” said Ithmaar Holding Chairman His Royal Highness Prince Amr Al Faisal. “The Company’s improved financial results reconfirm that effort to turn the group around is paying off,” he said. 

Ithmaar Bank profit up 13.4pc

Ithmaar Bank reported a net profit of BD4.10m for the six months ended 30 June 2019, an increase of 13.4pc compared to a net profit of BD3.61m for the same period in 2018.  Net profit attributable to equity holders of the Bank was BD2.11m, an increase of 53.4pc compared to BD1.37m net profit in the year-ago period. 

Total income increased 7pc to BD79.19m while Operating income decreased 4.4pc to BD40.36m from that in the same period a year ago. Commenting on the results, Ithmaar Holding Chief Executive Officer, Ahmed Abdul Rahim, who is also the Ithmaar Bank Chief Executive Officer, said the half-year results were very encouraging, with both the Company and the Bank reporting increased profits.  

He said the performance of Ithmaar Bank’s subsidiary in Pakistan, Faysal Bank Limited (FBL), was boosted by its aggressive growth strategy, despite being negatively impacted by the devaluation of the Pakistan Rupee against the US Dollar.  FBL increased its number of branches from 455 in December 2018 to 475 as on 30 June 2019. 

Pakistan Rupee has weakened by approximately 16pc to 163 at 30 June 2019 as against 140 at 31 December 2018, contributing mainly in reduction of Ithmaar Holding’s total assets to US$7.70 billion as at 30 June 2019, a 9.3pc decrease compared to US$8.49 billion as at 31 December 2018. This also impacted the total owners’ equity of the Company, which stood at US$93.85m as at 30 June 2019, a 19.3pc reduction compared to US$116.36m as 31 December 2018. 

For the three months, Ithmaar Bank reported a net profit of BD1.29m, a decrease of 18.4pc compared to a net profit of BD1.58m for the same period in 2018.   Net profit attributable to equity holders was BD0.45m, a 17.7pc decrease compared to BD0.54m in the prior-year quarter. 

Total income increased 3.5pc to BD38.59m while Operating income decreased 12.5pc to BD18.94m from the 2018 quarter.  “Ithmaar Bank’s balance sheet has reduced by 9.4pc with total assets at BD2.83 billion as at 30 June 2019, compared to BD3.13 billion as at 31 December 2018,” said Abdul Rahim. 

“Despite challenging market conditions, the Bank increased its liquid assets by 21.6pc to BD368.69m as at 30 June 2019, compared to BD303.19m as at 31 December 2018,” said Abdul Rahim. “This improved liquidity reflects the Bank’s prudent financial policies and its ability to adapt to market conditions,” he said.