Ithmaar Bank, a Bahrain-based Islamic retail lender, said it has narrowed its net loss for the year ended December 31, 2012, to BD10.1 million ( $26.4 million) from a net loss of BD23.3 million the previous year mainly due to growth in its core retail banking operations.

Announcing the results, Ithmaar Bank chairman Prince Amr Al Faisal said, "It is encouraging to note the turnaround in profit before impairment and taxation with a profit of BD12.8 million for the period compared to a loss of BD14.3 million in 2011."

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

Addressing the board members, Prince Amr said the Bahraini bank had put up an improved performance across all its business lines. “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 a year ago,” he added.

The bank's operating income has also increased by 32.7 per cent to hit BD87.5 million from BD66 million the previous year.

“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.

Prince Amr 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 the top official.

According to him, Ithmaar continued to set-up prudent impairment provisions which, in 2012, amounted to BD20.4 million compared to BD8.2 million the year before.

CEO Mohammed Bucheerei said Ithmaar continues to successfully transform its balance sheet structure with a focus on retail business.

“This is evident from the growth in Murabahas and other financings which have increased by 15 per cent to BD1.19 billion from BD1.03 billion in 2011. Similarly, the equity of unrestricted investment account holders has increased by an impressive 18.6 per cent, to BD660.2 million in 2012 from BD556.7 million in 2011,” said Bucheerei.

Shareholders’ equity, he said, remained strong and stable, at BD222.1 million, while the bank’s balance sheet footing had marginally increased by 4.6 per cent to touch BD2.7 billion from BD2.6 billion in 2011.

Bucheerei attributed Ithmaar’s impressive financial performance in 2012 to its success in continuing to develop the retail banking operations, adding new products and improving its services.

"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). The prestigious award stand testimony to the Bank’s growing success and underscore its commitment to becoming the region’s premier Islamic retail bank," he added.-TradeArabia News Service