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 profit attributable to equity holders for
the three-month period ended 31 December 2021 of BD2.11 million compared to the
net loss of BD11.11 million reported for the same period in 2020. Total net
profit for the three-month period ended 31 December 2020 was BD3.82 million compared to the BD10.26
million net loss reported for the same period in 2020.
Despite
the profit for the quarter results, the Bank reported a net loss attributable
to equity holders for the year ended 31 December 2021 of BD0.51 million, a 97 percent
reduction compared to the net loss of BD15.29 million reported for 2020. Total
net profit for the year ended 31 December 2021 is BD5.16 million compared to
the net loss of BD10.97 million reported for 2020. This improvement, with a
significant reduction in losses, is due mainly to the gradual economic recovery
in 2021 from the effects of the global Covid-19 pandemic resulting from lower
impairment provisions compared to previous year.
“On
behalf of the Ithmaar Bank Board of Directors, I am pleased to report that
Ithmaar Bank’s commitment to focus on its core Islamic banking business has
borne fruit, effectively turning the Bank’s financial performance around,” said
HRH Prince Amr. “This helps set the stage for the next chapter in the Bank’s
evolution and perfectly positions us to best capitalise on the challenges and
opportunities that lie ahead,” he said.
In January
2022, Ithmaar
Bank’s parent company, Ithmaar Holding, and Al Salam Bank announced agreement
on the acquisition by Al Salam Bank of the consumer banking business of Ithmaar
Bank in Bahrain as well as Ithmaar Holdings’ ownership stake in both BBK and
Solidarity Group Holding. The announcement followed the execution of a
memorandum of understanding between the two entities in October 2021, and the
transaction remains subject to the approval of Ithmaar Holding shareholders and
the signing of definitive agreements. Following the transaction, Ithmaar Bank
will remain a wholly-owned subsidiary of Ithmaar Holding and continue its
journey as an innovative and agile Sharia compliant banking institution,
maintaining its banking operations as a licensed Islamic bank regulated by the
Central Bank of Bahrain and focusing on corporate banking and related services.
Ithmaar
Bank Chief Executive Officer, Ahmed Abdul Rahim said the year-end financial
results show that the Bank’s efforts to continuously grow closer to its
customers and enhance their Islamic banking experience had paid off.
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