Ithmaar Bank has reported a profit of $11.1 million during the first three quarters of this year compared to a loss of $80.3 million during the same period last year.

'On behalf of the Ithmaar Bank board of directors, I am pleased to report that the bank continues to report profits, despite challenging market conditions,' said Ithmaar Bank chairman Prince Amr Mohammed Al Faisal.

'The bank's year-to-date results indicate that our core retail and corporate banking activities remain a stable source of recurring income and that costs are under control,' he said.

'Ithmaar's financial results for the first nine months of this year show a net profit of $13.4 million, of which $11.1 million is attributable to shareholders of the bank,' said Prince Amr.

'This compares to a loss of $82.6 million for the same period last year, and reflects the bank's growing success,' he said.

'Ithmaar Bank's balance sheet continues to remain strong, at $5.5 billion, and total shareholders' equity, at $796 million,' said Prince Amr.

'Ithmaar has continued to build prudent impairment provisions which amounted to $29.4 million for the nine- month period, which ended on September 30, compared to $53.1 million in the same period last year,' he said.

Ithmaar chief executive Mohammed Bucheerei said that, following its transformation into an Islamic retail bank, Ithmaar has focused on further diversifying its liquidity base by strengthening its interbank and institutional relationships and on growing its customer accounts by launching new customer-focused products and services.

'Ithmaar's profit attributable to shareholders of the bank for the third quarter show a net profit of $6.5 million, which compares to a loss of $32.6 million during the same period last year.

'The net profit for the three-month period includes $29.4 million, which represents profit arising from the sale of certain assets to a related party,' said Bucheerei.

'Total income for the nine-month period remains strong at $140.2 million, an increase of 27 per cent compared to the total income of $110.4 million reported for the same period last year.

'The net profit for the nine month period includes $53.5 million which represents profits arising from the sale of certain assets.

'Operating expenses, at $106.3 million, are eight per cent lower than the $114.8 million reported for the same period last year.'-TradeArabia News Service