Ithmaar Bank, a Bahrain-based Islamic retail bank reported today a net loss of BD10.1 million ($26.6 million) in 2012, compared to a net loss of BD23.3 million in 2011.

The turnaround in profit before impairment and taxation with a profit of BD12.8million for 2012, compared to a loss of BD14.3million in 2011, a bank statement said.

The announcement, by Ithmaar Bank chairman Prince Amr Al Faisal, followed the review and approval, by the Board of Directors, of the bank’s consolidated financial results for the year ended December 31, 2012.

The results include a loss, for the quarter ended December 31, 2012, of BD4.2milion, against a loss of BD25.8million for the same period last year.

“On behalf of the Ithmaar Bank Board of Directors, I am pleased to announce improved performance across all Ithmaar Bank’s business lines,” said Prince Amr. “In particular, I am pleased to announce that total income has grown by 7.9 per cent, to BD183.4 million in 2012 from BD170 million in 2011,” he said.

“Operating income has also increased by 32.7 per cent, to BD87.5million from BD66 million in 2011,” said Prince Amr. “Consequently, the results show that net profit before impairment and taxation for the year is a profit of BD12.8 million against a loss of BD14.3 million last year,” he said.

He attributed the positive financial results of 2012 to continued growth in Ithmaar’s core retail banking operations.

“In 2012, the number of retail branches across the group increased by nine and, despite this increased operations, administrative expenses remained under control and are marginally lower than for 2011,” said Prince Amr.

“Meanwhile, the Bank has continued to set-up prudent impairment provisions which, in 2012, amounted to BD20.4 million as compared to BD8.2 million in 2011. In 2012, the performance of one of our subsidiaries was also impacted by significant profit rate cuts announced by its local regulator,” he said.

Ithmaar Bank chief executive officer and member of the board, Mohammed Bucheerei, said the bank is continuing to work towards realising the board-approved vision of becoming the region’s premier Islamic retail bank.

“I am pleased to report that Ithmaar Bank continues to successfully transform its balance sheet structure with a focus on retail business,” said Bucheerei.

“This is evident from the growth in Murabahas and other financings which have increased by 15 per cent, to BD1.19 billion in 2012 from BD1.03 billion in 2011. Similarly, the equity of unrestricted investment account holders has increased by an impressive 18.6 per cent, to BD 660.2 million in 2012 from BD 556.7 million in 2011,” he said.

“Shareholders’ equity remains strong and stable, at BD219.6 million, and the Bank’s balance sheet footing has marginally increased by 4.6 per cent, to BD2.7 billion in 2012 from BD2.6 billion in 2011,” said Bucheerei.

“The bank’s impressive financial performance in 2012 is, mainly due to our success in continuing to develop our retail banking operations, adding new products and improving our services,” he said.

In fact, Ithmaar’s achievements have helped earn the Bank international kudos, with the Bank’s Mobicash offering earning the UN-based World Summit Award mobile (WSA-mobile), he pointed out. – TradeArabia News Service