Ithmaar continues stable, customer-centric growth | THE DAILY TRIBUNE | KINGDOM OF BAHRAIN

Ithmaar continues stable, customer-centric growth

TDT | Manama

The Daily Tribune – www.newsofbahrain.com

Ithmaar Bank, a Bahrain-based Islamic retail bank, said it continues to focus on customer-centric growth and on becoming the Islamic retail bank of choice as it announced its financial results for the year ended 31 December 2020.

The bank reported a net loss attributable to equity holders for the three months ended 31 December 2020 of BD11.11 million compared to the net loss of BD4.02 m in the same quarter a year ago.

Total net loss was BD10.26 m compared to the BD2.80 m net loss reported for 2019.

The results are mainly due to prudent impairment provisions, recognised largely as a consequence of the ongoing global Covid-19 pandemic. Net loss attributable to equity holders for the year ended 31 December 2020 of BD15.29 m compared to the net loss of BD1.35 m reported for 2019.

Total net loss for the year ended 31 December 2020 was BD10.97 m compared to the net profit of BD2.48 m reported for 2019.

“On behalf of the Ithmaar Bank Board of Directors, I am pleased to report that, despite the unprecedented challenges of 2020, the Bank continues to demonstrate remarkable resilience and remains resolutely focused on becoming the Islamic retail bank of choice in the Kingdom of Bahrain,” said HRH Prince Amr.

“Perhaps the clearest testimony to the Bank’s resilience and continued growth is the fact that it is reporting increased operating income for 2020, one of the most challenging years in decades,” said HRH Prince Amr.

Operating income increased by 4%, growing to BD87.02 m for the year ended 31 December 2020, compared to the BD83.59m reported for 2019.

Income from unrestricted investment accounts also increased by 11%, growing to BD91.60 m for the year ended 31 December 2020, compared to BD82.55 m for 2019.

“This growth demonstrates continued customer confidence in the Bank, despite the extraordinary market conditions of 2020,” said HRH Prince Amr.

“Ithmaar Bank’s results include significant impairment provisions, which increased by BD12.81 m in 2020 compared to their 2019 levels due to the ongoing global pandemic,” said HRH Prince Amr.

“Despite these prudent provisions, the Bank reported a net loss, before overseas taxation, of BD1.10 m for the year ended 31 December 2020 compared to net income of BD12.89 m reported for 2019,” he added.

Deal with BBK In September 2020, Ithmaar Holding, Ithmaar Bank’s parent company, and the Bank of Bahrain and Kuwait (BBK), signed 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.

The plans, which are subject to due diligence by both parties, will require shareholder and regulatory approvals.

When implemented, the plans will lead to bolstering the already well established Ithmaar Bank brand and position it to better capitalize on growth opportunities.

The plans are in line with Ithmaar Holding’s strategy of creating value for its shareholders.

“Our shared vision, of the becoming the Islamic retail bank of choice, was put to test by the trials of 2020 – and I am pleased to report that, not only did we manage to continue our customer-centric growth, but we emerged stronger than before,” said Abdul Rahim.

“This, in turn, helps highlight the fact that Ithmaar Bank is a growing, resilient bank, as reflected in the increased operating income, that continues to invest in the future and plays a key role in the community,” he said.

“A good reflection of customer confidence in Ithmaar Bank is the steady growth in the equity of unrestricted investment account holders by 20% to reach to BD1.28 billion at 31 December 2020 from BD1.06 billion in the year 2019, as well as the increase in customers’ current accounts by 16% to reach to BD661.7 m at 31 December 2020, compared to BD572.5 m in the year 2019,” said Abdul Rahim.

Ithmaar Holding reports 2020 financial results

Ithmaar Holding (ITHMR), a Bahrain-based holding company, reported a net loss attributable to equity holders for the three months ended 31 December 2020 of US$38.43 million compared to the net loss of US$11.38 m reported for the same period in 2019.

Earnings Per Share (EPS) for the three months ended 31 December 2020 were negative US Cents 1.32, compared to negative US Cents 0.39 for the same period in 2019.

Total net loss for the three months ended 31 December 2020 was US$30.26 m compared to the net loss of US$6.69 m reported for 2019 mainly due to impairment provisions during the period.

Total owners’ equity stood at US$14.76 m as of 31 December 2020, an 85 % decrease compared to US$95.55 m as of 31 December 2019.

The reduction is mainly attributable to the dramatic economic slowdown caused by the Covid-19 pandemic. Accumulated losses, as of 31 December 2020, stood at US$833.80 m and amount to 110 % of the share capital.

Total net loss attributable to equity holders for the year ended 31 December 2020 was US$41.72 m, compared to the net profit of US$0.67 m reported for 2019.

The decrease is mainly due to the economic impact of the Covid-19 pandemic.

EPS for the year ended 31 December 2020 was negative US Cents 1.43, compared to positive US Cents 0.02 for 2019.

Total net loss for the year ended 31 December 2020 was US$21.48 m compared to the net profit of US$12.20 m reported for 2019.