Bahrain-based Ithmaar Bank managed to cut its net loss last year to $61.9 million compared with $140 million for 2010.

The 2011 results include a consolidated fourth-quarter loss of $68.6 million compared with a loss of $153.4 million for the same period last year.

Commenting on the results, chairman Prince Amr Mohammed Al Faisal said, 'I am pleased to report that, despite challenging global market conditions and unprecedented local and regional political turmoil, Ithmaar reported total income of $451 million in 2011, an increase of around three per cent over its 2010 total.'

'The bank's 2011 financial results show a loss of $61.9 milllion marking a recovery of around 56 per cent,' he stated.

'The bank continued to take prudent impairment provisions and simultaneously pursued aggressive recoveries resulting in provision write backs.'

'These results represent a significant recovery led by the bank's core business which continues to improve, as demonstrated by the increased total income, a direct result of the retail branch expansion, new business, new products and new services, that were introduced and the full-year impact of certain business acquired in 2010.'

Chief executive Mohammed Bucheerei said the bank's financial results show an increase in total income as well as growth in both deposits and financings.

'These achievements, which come despite the challenges arising from the euro zone crisis as well as the local and wider regional political turmoil, are consistent with the board approved strategy and indicate that Ithmaar is clearly on the path to achieving its strategic objectives.

'During 2011, the bank continued to take prudent impairment provisions with new provisions totalling $90.9m, simultaneously the bank has pursued an aggressive approach on recoveries resulting in provision write-backs of $69.1 million.

'Total income for the year increased to $451 million from $438.4 million in 2010, despite 2010 income including two one-off gains from investment amounting to $44 million.

'Overall operating expenses, at $212.9 million, were under control and have increased mainly due to commissioning of 32 new Faysal Bank Limited branches in Pakistan and five new Ithmaar Bank branches in Bahrain during the year,' Bucheerei said.

'The new strategy adopted in 2010 has resulted in shift in balance sheet composition and is now more retail-focused. The continued growth in financing also demonstrates Ithmaar's sound deployment of liquidity,' he noted.

'These achievements were made possible, in a large part, by the introduction of new retail banking products and services as well as the fast-paced expansion of our retail banking network,' he added.-TradeArabia News Service