COMMUNITY NEWS
Ithmaar Bank reports stable, consistent growth
Feb 20, 2020 3:34 PM
Ithmaar Bank B.S.C. (Closed), a Bahrain-based Islamic retail bank, announced its financial results for the year ended 31 December 2019.
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’s financial results show a net loss
attributable to equity holders for the three-month period ended 31 December
2019 of BD4 million, a 2509 percent increase compared to the net loss of BD0.15
million reported for 2018 resulting mainly due to prudent impairment provisions.
Total net loss for the three-month period ended 31 December 2019 was BD2.8
million compared to the net profit of BD9.38 million reported for 2018.
As a
result, the net loss attributable to equity holders for the year ended 31
December 2019 was BD1.35 million compared to the net profit of BD1.41 million
reported for 2018.
Total net
profit for the year ended 31 December 2019 was BD2.48 million, a 82.5 percent decrease
compared to the net profit of BD14.14 million reported for 2018, which was then
mainly due a one-off gain from Dilmunia Development Fund I L.P when it became a
subsidiary of the Bank in 2018.
“On behalf of the Ithmaar Bank Board of Directors, I
am pleased to report that, although the Bank did not report a profit for the
year, it continues to report stable, consistent growth with improved products
and services as well as increased customer deposits,” said HRH Prince Amr.
“This is in line with the Bank’s commitment to focusing on its core retail
banking business while working to realise our shared vision of becoming one of
the region’s leading retail banks,” he said.
Total
income for the year ended 31 December 2019 was BD171.22 million, a 12.8 percent
increase compared to the total income of BD151.78 million reported for 2018,
mainly due to increases in core income. Operating income for the year ended 31
December 2019 was BD83.59 million, remaining stable and with a 0.3 percent decrease
compared to the BD83.82 million reported for 2018.
Ithmaar Bank’s total assets stood at BD2.98 billion as
at 31 December 2019, a 4.7 percent decrease compared to BD3.13 billion as at 31
December 2018, mainly due to a decrease in the investment securities portfolio
of a subsidiary. Total owners’ equity stood at BD79.17 million as at 31
December 2019, a 7.3 percent decrease compared to BD85.39 million as 31
December 2018, resulting mainly from the impact of the devaluation of Pakistan
Rupee.
Despite challenging conditions, the equity of unrestricted investment account holders grew to BD1.06 billion as at 31 December 2019, a 6.9 percent increase compared to BD0.995 billion as at 31 December 2018, reflecting customer confidence in the Bank.
“The Bank’s unwavering focus on its core retail
banking business is building a stable foundation while setting the stage for
continued growth,” said Ithmaar
Bank Chief Executive Officer, Ahmed Abdul Rahim. “The focus throughout 2019 has
been on preparing the Bank to fully realise the tremendous opportunities that
lie ahead. This, in turn, has earned the Bank two key awards in 2019, both
reflecting our ability to stay ahead of the curve both locally and regionally
as well as highlighting the significance of our digital initiatives,” he said.
In December 2019, Ithmaar Bank was named “Fastest
Growing Islamic Fintech Bank” at the World Islamic Banking Conference (WIBC).
The prestigious award was presented by Central Bank of Bahrain (CBB) Governor,
Rasheed Mohammed Al Maraj, at the WIBC. According to organisers, the award is
granted to the top Islamic financial institutions based on their aggregate
performance scores against multiple measures on a global and regional level.
Award recipients are those that secure the top aggregate score at the global
and regional level.
Ithmaar Bank was
also named “Best Bank for Personal Finance in Bahrain” in 2019 by the World
Union of Arab Bankers (WUAB) at a high-profile ceremony hosted in Beirut,
Lebanon, and attended by senior bankers from across the Middle East. Ithmaar
Bank earned the prestigious award following a comprehensive selection and
review process that was conducted by a committee of high-level economists and banking
professionals, as well the research department of the Union of Arab Banks (UAB)
and the WUAB.
In 2019, Ithmaar
Bank launched a customer-centric chat service on WhatsApp Business social media
platform to help further improve its customers’ banking experience. As a result, customers can request information
from WhatsApp about Ithmaar Bank products and services, as well as make general
inquiries about branch locations and timings, ATM locations, Thimaar draw dates
and winners list, as well as ongoing promotions and campaigns. The launch of
the chat service on WhatsApp Business was part of Ithmaar Bank’s committed,
bank-wide digital initiative which aims to build on the Bank’s history of
innovation. Most recently, this included the launch of the region’s first
biometric-enabled ATM network.
In October 2019, as part of its efforts to
continuously improve its customers’ banking experience, Ithmaar Bank also
inaugurated a new branch in Muharraq. The branch, which is more accessible and
offers better parking facilities than Ithmaar Bank’s earlier branch in
Muharraq, was commissioned in response to customer demands and underscored how
seriously the Bank takes customer feedback. The new branch maintains Ithmaar
Bank’s network of 16 branches and 42 ATM machines, one of the largest retail
banking networks in Bahrain.