MANAMA: Ithmaar Bank, a Bahrain-based Islamic retail bank, reported Wednesday a net profit of $11.96 million for the first half of 2016, an 8.3 percent decrease compared to the $13.04 million net profit reported for the same period last year. Net profit attributable to equity holders of the Bank for the first half of 2016 was $4.40 million, a 22.2 percent decrease compared to the $5.66 million net profit reported for the same period last year.
Net profit for the three month period ended June 30, 2016 amounted to $7.14 million, a 31.7 percent increase from the net profit of $5.42 million reported for the same period last year. Net profit attributable to equity holders of the bank for the three-month period ended 30 June 2016 was $3.19 million, an increase of 5.7 percent compared to the $3.02 million net profit reported for the same period last year. The announcement by Ithmaar Bank Chairman Prince Amr Al Faisal followed the review and approval by the Board of Directors of the bank’s consolidated financial results for the six-month period ended June 30, 2016.
“On behalf of the Board of Directors, I am pleased to announce that Ithmaar Bank has reported profits, and that the Bank’s core retail business continues to perform well,” said Prince Amr. “The financial results of the first half of 2016 indicate that the bank’s operating income remains stable, at $132.66 million, and that total expenses, at $95.99 million, remain unchanged despite continued expansion of the Bank’s retail network,” he said.
Ithmaar Bank Chief Executive Officer Ahmed Abdul Rahim said the bank continues to work towards becoming one of the region’s premier Islamic retail banks, and remains focused on growing closer to its customers. “I am pleased to report that the balance sheet continues to be stable, and that our core business as well as our customer accounts continue to grow,” said Abdul Rahim. “This is evident from the equity of unrestricted investment account holders growing to $2.36 billion as of 30 June 2016, an 8.2 percent increase compared to $2.18 billion as of 30 June 2015, and a 7.2 percent increase compared to $2.20 billion as of 31 December 2015,” he said.
“This increase, a testimony to continued customer confidence, is further evidence that the bank’s efforts to grow continuously closer to its customers is paying off,” said Abdul Rahim. “Current accounts and due to investors, for example, grew to $3.58 billion as of 30 June 2016, a 1.8 percent increase compared to $3.51 billion as of 30 June 2015, and a 5.6 percent increase compared to $3.39 billion as of 31 December 2015. Liquid assets now represent 10.5 percent of total assets compared to 10.6 percent as of 31 December 2015,” he said.
As part of its focus on continuously growing closer to its customers, Ithmaar Bank inaugurated a new full-service branch in the Galali neighborhood of Muharraq last month, increasing the total branches in Muharraq alone to four. The new branch brings Ithmaar Bank’s network to 18 branches and 48 ATM machines, making it one of the widest distribution channel networks amongst banks in Bahrain.
