The announcement by the Ithmaar Holding Chairman His
Royal Highness Prince Amr Al Faisal, who is also the Ithmaar Bank Chairman,
follows the review and approval of both Board of Directors of the consolidated
financial results for the nine-month period ended 30
September 2018.
Ithmaar Holding reported a net profit of US$11.34
million for the nine-month period ended 30 September 2018, as compared
to a net loss of US$16.25 million for the same period in 2017. Net profit attributable to equity holders for
the nine-month period ended 30 September 2018 was US$2.73
million, as compared to the US$27.04 million net loss reported for the same
period in 2017. The increase net profit is mainly due to higher impairment
provision in the previous period resulting from classification of an associate
to held-for-sale. This has been reclassified as an associate during 2018. Earnings
per share (EPS) for the nine month period increased to US Cents 0.09 compared
to negative US Cents 0.93 for the same period in 2017.
The results included a net profit of US$0.51 million
for the three-month period ended 30 September 2018, as compared to a net loss
of US$14.66 million for the same period in 2017, and a net loss of US$2.12
million attributable to equity holders for the three-month period ended 30 September 2018, as compared
to a net loss of US$17.80 million reported for the same period in 2017. EPS for
the three-month period increased to negative US Cents 0.07 compared to negative
US Cents 0.61 for the same period in 2017.
“On behalf of the Ithmaar Holding Board of Directors,
I am pleased to announce that our 2018 results continue to highlight the
turnaround in our financial performance,” said HRH Prince Amr. “This
achievement, which is made all the more significant by the challenging market
conditions that characterised much of 2018, is testimony to the strength of the
Group’s core retail banking business,” he said.
“The 2018 results show that total income for the nine-month
period ended 30 September 2018 increased to US$334.52 million, a 10.6 percent
increase from the US$302.34 million reported for the same period last year. This
included total income of US$109.09 million for the three-month period ended 30
September 2018, a 15.7 percent increase compared to US$94.27 million reported
for the same period last year. This was mainly due to higher share of profit
after tax from associates resulting from reclassification from held-for-sale to
associate during the period,” said HRH Prince Amr. “As a result, our operating
income for the nine-month period ended 30 September 2018 increased to US$211.47
million, a 16.8 percent increase from the US$181.08 million reported for the
same period last year. This included an operating income of US$62.79 million
for the three-month period ended 30 September 2018, a 16.6 percent increase
compared to US$53.87 million for the same period last year,” said HRH Prince
Amr.
Ithmaar Holding Chief Executive Officer, Ahmed Abdul
Rahim, who is also the Ithmaar Bank Chief Executive Officer, said the financial
performance of both institutions demonstrate that efforts to turn the Group
around are paying off.
“Ithmaar Holding’s balance sheet remained stable with
total assets at US$7.99 billion as at 30 September 2018, compared to US$8.61
billion as at 31 December 2017,” said Abdul Rahim. “Total owners’ equity stood
at US$187.29 million as at 30 September 2018, a 47.3% decrease compared to
US$355.33 million as 31 December 2017, and the decrease is mainly due to the
early adoption of the new Financial Accounting Standard (FAS 30) “Impairment,
credit losses and onerous commitments” that was issued by the Accounting and
Auditing Organisation for Islamic Financial Institutions (AAOIFI),” he said.
“Meanwhile, Ithmaar Bank’s financial results show a net
profit of BD4.76 million for the nine-month period ended 30 September 2018, a
decrease of 17.8 percent compared to a net profit of BD5.79 million for the
same period in 2017,” said Abdul Rahim. “Net profit attributable to equity
holders for the nine-month period ended 30 September 2018 was BD1.56 million, a
decrease of 9.9 percent compared to the BD1.73 million net profit reported for
the same period in 2017,” he said.
“The results included a net profit of BD1.15 million
of the three-month period ended 30 September 2018, a decrease of 18.3 percent
compared to a net profit of BD1.41 million for the same period in 2017,” said
Abdul Rahim. “Net profit attributable to
equity holders for the three-month period ended 30 September 2018 was BD0.19
million, a decrease of 0.5 percent compared to the BD0.19 million profit
reported for the same period in 2017,” he said.
“Core income continued to grow in 2018, with Group’s
share of income from unrestricted investment accounts increasing BD20.86
million for the nine-month period ended 30 September 2018, a 6.6 percent
increase from the BD19.56 million reported for the same period last year. Income from murabaha and other financings
also increased to BD50.11 million, a 7.9 percent increase from the BD46.45
million reported for the same period last year,” said Abdul Rahim. “These
significant increases reflect growing customer confidence in the Bank,” he
said.
“The Bank’s financial results include an operating
income of BD62.79 million for the nine-month period ended 30 September 2018, a
4.7 percent decrease as compared to the BD65.87 million reported for the same
period last year,” said Abdul Rahim. “This included an operating income of
BD20.59 million for the three-month period ended 30 September 2018, a 2.4
percent increase compared to BD20.11 million reported for the same period last
year,” he said.
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