Prince Amr Mohamed Al Faisal and Mohammed Bucheerei
Ithmaar Bank posts $15.6m net loss
Manama, November 14, 2012
Ithmaar Bank, a Bahrain-based Islamic retail bank, reported a net loss of $15.6 million for the nine-month period ended on September 30 compared to a net profit of $6.7 million for the same period last year.
Announcing the Q3 results, Ithmaar Bank chairman Prince Amr Mohamed Al Faisal, said Ithmaar had registered overall growth in core business for the year. However, after recognising prudent impairment provisionsit the bank reported a net loss.
The net loss was despite its operating income increasing 14.21 per cent to $161.9 million for the period, a report in the Gulf Daily News, our sister publication, quoted him as saying.
"Ithmaar Bank's core business areas are continuing to do well," said Prince Amr. "This is reflected in the growth in operating income by 14.2 per cent, as well as the total income which grew about 4 per cent to $356.8m, compared with $343.4m for the same period last year.
"Expenses during the period have also marginally decreased, by 3.6 per cent, to $147m compared to $152.5m for the same period last year due to cost rationalisation," he said.
"In the nine-month period ended September 30, Ithmaar took significant net impairment provisions of $23.9m, compared to a provision write back of $22.5m during the same period last year," said Prince Amr.
"The provisions are due, in part, to Ithmaar's efforts to reflect the decline in fair value of certain investment assets and to build adequate provisions on its financing portfolio. This included a net loss attributable to shareholders of $19.3 million for the three-month period ended September 30, compared with a net loss of $1.6 million for the same period last year," he added.
Chief executive Mohammed Bucheerei said the continuing growth in financing during 2012 was a reflection of stable growth in core business.
"Financing has increased by 17.3 per cent to $3.2 billion as at September 30 from $2.7 billion as at December 31 last year," Bucheerei said.
"The investment portfolio has decreased, particularly investment securities, which decreased by 21.2 per cent to $964.5 million as at September 30, from $1.2 billion as at the year-end," he added.-TradeArabia News Service