The announcement, by Ithmaar Bank Chairman His Royal Highness Prince Amr Mohamed 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 30 June 2012.
The results show a net profit attributable to the shareholders’ of $567000 for the period, compared to a net profit of $4.3million in same period last year. The results also show that total income increased to $237.9million, as compared to the total income of $234.6million reported for the same period last year. Net impairment provisions for the six months ended 30 June 2012 is $3.6million, as compared to net impairment write back of $17.5million in the same period last year.
The results show a turnaround in net income before provisions and taxation of $7.1 million, as compared to a loss of $4.8million in the first half of 2011. The Bank reported a net profit attributable to equity holders of $1.3million for the three-month period ended 30 June 2012. This marks an increase of over 60percent over the net profit of $799000 for the same period last year.
“On behalf of the Ithmaar Bank Board of Directors, I am pleased to announce that Ithmaar Bank’s core business activities continue to grow, delivering positive returns and driving the Bank’s growing success,” said HRH Prince Amr. “The Bank’s balance Sheet remains stable, at $7billion as at 30 June 2012 as compared to $6.9billion as at 31 December 2011,” he said.
“These results stand testimony to the growing success of the Bank’s core retail and commercial banking activities,” said HRH Prince Amr. “These are continuing to grow steadily, in line with the Bank’s strategic plan,” he said.
Ithmaar Bank Chief Executive Officer and Member of the Board, Mohammed Bucheerei, pointed to significant growth in financing during the first half of 2012 as a reflection of continued growth in core business.
“Morabahas and other financing have increased by 13.6 percent to $3.1billion, as at 30 June 2012, from $2.7billion as at 31 December 2011,” said Bucheerei. “Unrestricted investment accounts have also increased, by 7.5 percent, to $1.58billion from $1.47billion, and customer current accounts increased, by 21.3percent, to $961million from $792million, in the same period,” he said.
“Shareholders’ equity also remains stable, at $577 million, and expenses continue to be under control,” said Bucheerei. “In the first half of 2012, for example, Ithmaar’s cost control initiatives has resulted in reduced costs by 8.36 percent to $99.8 million from $108.9million during the same period last year,” he said.
Bucheerei, who had repeatedly stressed Ithmaar’s commitment to its shareholders, noted that the Bank is delivering on its promises by significantly increasing its income and improving its core business activities.