ITHMAAR Holding BSC (formerly Ithmaar Bank BSC) reported a net profit of $13.80 million for the year ended Dec. 31, 2016, compared to a net loss of $46.40 million reported for 2015. Net profit attributable to equity holders of the Bank for the year ended 31 December 2016 was $3.28 million, compared to a net loss $60.80 million reported for 2015. [caption id="attachment_124069" align="alignright" width="240"] Ahmed Abdul Rahim[/caption] The 2016 financial results include a net loss for the three-month period ended 31 December 2016 of $2.93 million compared to the net loss of $57.79 million reported for the same period last year. Net loss attributable to equity holders of the Bank for the three-month period ended 31 December 2016 was $3.23 million compared to the $62.90 million net loss reported for the same period last year. The announcement by Ithmaar Bank Chairman Prince Amr Al Faisal, follows the review and approval by the Board of Directors of Ithmaar's consolidated financial results for the year ended Dec. 31, 2016. "On behalf of the Board of Directors, I am pleased to announce that Ithmaar has returned to profitability for 2016 as it continues to show stable growth in its core retail banking business," said Prince Amr. "This is most clearly reflected in Ithmaar's net income, before overseas taxation, which amounted to $36.74 million, for the year ended 31 December 2016, a 315 percent increase and a complete turnaround from the $17.07 million net loss, before overseas taxation, reported for 2015," he said. "This is, in a large part, a result of continuously improving Ithmaar's products and services while also keeping costs and expenses under control," said HRH Prince Amr. "Total expenses for the year ended 31 December 2016, for example, amounted to $192.10 million, a marginal increase from the total expenses of $190.41 million reported for 2015. This is despite the continuous expansions of Ithmaar's retail banking operations both in Bahrain and in Pakistan, where 75 new branches were opened in 2016." he said. "Ithmaar's financial performance in 2016 is testimony to the efforts invested in focusing on developing the Bank's core retail banking business," said HRH Prince Amr. "We are confident that, following the completion of the reorganization and the formal commencement of the new group structure this year, we will further develop this growth," he said. The new structure, which was proposed by the Bank's Board of Directors and approved by shareholders in March 2016, resulted in the conversion of Ithmaar Bank B.S.C into Ithmaar Holding B.S.C. (Ithmaar Holding), which is licensed and regulated by the Central Bank of Bahrain (CBB) and is listed on the Bahrain Bourse and Boursa Kuwait. Ithmaar Holding retains 100 percent ownership of all assets formerly owned by Ithmaar Bank B.S.C., through two wholly-owned subsidiaries Ithmaar Bank B.S.C (closed) (Ithmaar Bank), an Islamic retail bank subsidiary which holds the core retail banking business, and IB Capital B.S.C. (closed) (IB Capital), an investment subsidiary, which holds investments and other non-core assets. The two subsidiaries are licensed and regulated by the CBB. "In this context, we extend our sincere thanks and appreciation to the Central Bank of Bahrain and the Ministry of Industry, Commerce and Tourism as well as the Bahrain Bourse and Boursa Kuwait for their outstanding support which has led to the completion of the two-year long reorganisation project successfully on time," said Prince Amr. Ithmaar Chief Executive Officer Ahmed Abdul Rahim noted that the 2016 financial results demonstrate that Ithmaar's efforts to grow its core retail banking business were paying off, and said the new structure will facilitate it taking advantage of new growth opportunities and help generate greater value to shareholders. "I am pleased to report that Ithmaar's financial performance in 2016 indicates that efforts to focus on our core retail banking business are clearly paying off," said Abdul Rahim. "The core business areas of financing, customer deposits, and unrestricted investment account holders have achieved good growth, resulting in increasing total assets to $8.34 billion as at 31 December 2016, an increase of 2.5 percent from $8.14 billion as at 31 December 2015," he said.
