Current Accounts Portfolio up 7%
MANAMA, BAHRAIN – 11 May 2021 – Ithmaar Bank B.S.C. (closed), a Bahrain-based Islamic retail bank, reported a profit for the three-month period ended 31 March 2021, and said it continues to focus on further enhancing its customers’ Islamic banking experience.
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 for the period.
Ithmaar Bank’s financial results show a net profit attributable to equity holders for the three-month period ended 31 March 2021 of BD0.15 million compared to the BD6.71 million net loss attributable to equity holders for the same period last year. Overall, the Bank’s results show a net profit for the three-month period ended 31 March 2021 of BD1.55million compared to the net loss of BD5.68 million for the same period in 2020.
“On behalf of the Ithmaar Bank Board of Directors, I am pleased to report that, despite the continuing economic challenges imposed by the ongoing global pandemic, the Bank has started the current year on a positive note, reporting profits for the Quarter and continuing to improve its customer offerings,” said HRH Prince Amr. “This further reinforces our confidence that the Bank is on the right track, and takes us another step closer to realising our shared vision of becoming one of the regions’ leading Islamic retail banks,” he said.
The Bank’s financial results show that the Bank’s cost of funding decreased significantly, with profits paid to banks, financial and other institutions during the three-month period ended 31 March 2021 reducing to BD15.42million, a 36 percent reduction compared to BD24.09million in the same period last year. They also show that total expenses remain well under control, decreasing to BD17.14million for the three-month period ended 31 March 2021, a 1.9 percent reduction compared to BD17.47million, despite continued investments in further enhancing products, services and the customer experience.
“Despite the ongoing economic challenges, Ithmaar Bank continues to grow, particularly in the key, customer-focused areas,” said Ithmaar Bank Chief Executive Officer, Ahmed Abdul Rahim. “This is reflected in the continued growth of customer deposits, a key indicator of market confidence in the Bank, despite the extraordinarily turbulent economic conditions,” he said.
“Despite current market conditions, the equity of unrestricted investment account holders remained stable at BD1.28 billion as at 31 March 2021, with a minor increase of 0.5 percent increase compared to BD1.27 billion as at 31 December 2020,” said Abdul Rahim. “Customers’ current accounts also grew to BD708.25 million as at 31 March 2021, 7 percent increase compared to BD661.74 million as at 31 December 2020,” he said.
“Ithmaar Bank’s total assets increased to BD3.31billion as at 31 March 2021, a 7 percent increase compared to BD3.09 billion as at 31 December 2020,” said Abdul Rahim. “Total owners’ equity stood at BD54.83 million as at 31 March 2021, a 10 percent increase compared to BD49.83 million as at 31 December 2020,” he said.
“The Bank’s financial performance is a result of our continued focus on enhancing our customers’ Islamic banking experience,” said Abdul Rahim. “This included tremendous investments of time, money and effort on continuously enhancing existing our products and services while also developing innovative new solutions,” he said.
Just before of the start of the Holy Month of Ramadan for example, Ithmaar Bank announced that its customers can get their salaries in advance, instantly and directly from their mobile phones, by using the Bank’s dedicated mobile application (App). The service, which was launched as part of the Bank’s digital transformation strategy, is a first of its kind in Bahrain and uses sophisticated technology to automate the entire process; from the initial application through to the review, evaluation, approval and even disbursement of funds. In doing so, it provides a uniquely fast and efficient solution to customers and demonstrates the dramatic potential of using technology to enhance banking services.
In April, Ithmaar Bank, also became the first Bank in Bahrain that facilitates and streamlines its customers’ Zakat and Sadaqat transfer payments when it announced a collaboration with the Zakat and Sadaqat Fund of Bahrain’s Ministry of Justice, Islamic Affairs and Waqf to streamline Zakat and Sadaqat monthly payments in the Kingdom. This first of its kind collaboration with the Ministry allows the Bank’s customers to easily pay Zakat and Sadaqat directly into the Ministry’s Zakat and Sadaqat Fund through standing orders, direct debit or online transfers. Ithmaar Bank also announced in April an agreement with the Bahrain Bourse allowing the Bank to utilise the Ijara Sukuks issued by the Central Bank of Bahrain (CBB) as underlying assets to complete Murabaha Finances using an innovative, Sharia-compliant brokerage service introduced by the Bourse through its electronic platform.
About Ithmaar Bank:
Ithmaar Bank B.S.C. (closed) (“Ithmaar Bank”) is a Bahrain-based Islamic retail bank that is licensed and regulated by the Central Bank of Bahrain and provides retail, commercial, treasury & financial institutions and other banking services.
Ithmaar Bank is a wholly-owned subsidiary of Ithmaar Holding B.S.C. which is listed on the Bahrain Bourse, and Dubai Financial Market.
Ithmaar Bank provides a diverse range of Sharia-compliant products and services that cater to the financing and investment needs of individuals and institutions. Ithmaar also maintains a presence in overseas markets through its subsidiary, Faysal Bank Limited (Pakistan) and locally through Dilmunia Development Fund I L.P.