Shareholders of Ithmaar Holding, a Bahrain-based holding company, yesterday approved plans to sell some of the company’s key assets in Bahrain to Al Salam Bank.

 

The assets include Ithmaar Holdings’ ownership stake in both BBK and Solidarity Group Holding, one of the largest takaful groups globally and the parent of Solidarity Bahrain, as well as the consumer banking business of Ithmaar Bank, a Bahrain-based Islamic bank and a wholly-owned subsidiary of Ithmaar Holding. 

 

The plans were presented to Ithmaar Holding shareholders at an Extraordinary General Meeting (EGM) that was held electronically through videoconferencing and chaired by the Chairman of the Ithmaar Holding Board of Directors, Prince Amr Al Faisal. Other key participants in the EGM included representatives from the Central Bank of Bahrain (CBB), the Ministry of Industry, Commerce and Tourism (MOICT), the Bahrain Bourse, and the Company’s statutory auditors, PricewaterhouseCoopers.

 

When the plans are implemented, Ithmaar Holding will retain a well-diversified portfolio of international and local financial and other assets, which include banking businesses in Bahrain and Pakistan. Ithmaar Bank, which will remain a wholly-owned subsidiary of Ithmaar Holding, will continue as an innovative Islamic bank that is licensed and regulated by the CBB and exclusively focused on corporate banking and related services, particularly the fast- growing SME sector. 

 

“The plans mark a key milestone in the transformation of the group’s operations, in line with the strategic decisions taken by the shareholders in 2016,” said Prince Amr. “When implemented, the plans will have realised a key component in Ithmaar Holding’s business model of investing, developing, nurturing, growing and then realising value for its shareholders,” he said.

 

The EGM followed the company’s Annual General Meeting (AGM) that was also held through videoconferencing the previous day (March 16) and chaired by Prince Amr. During the AGM, Ithmaar Holding shareholders approved the company’s consolidated financial statements for 2021. 

“We are pleased to report that, despite challenging market conditions and the lingering negative effects of the pandemic on the global economy, Ithmaar Holding concluded 2021 on a positive note, recording significant profits and setting the stage for a new era of growth,” said Prince Amr. 

 

“The total net profit attributable to equity holders for the year ended December 31, 2021 was $38.60 million, a 193 percent increase compared to the net loss of $41.72 million reported for 2020. The increase is mainly due to the growth in core income. As a result, Earnings Per Share (EPS) for the year ended 31 December 2021 was US Cents 1.33, compared to negative US Cents 1.43 for 2020,” he said.

 

“Ithmaar Holding’s total owners’ equity increased to $37.76 million as at 31 December 2021, a 156 percent increase compared to $14.76 million as at 31 December 2020,” said Prince Amr. “The increase is mainly attributable to profits for the year,” he said.

 

“The company’s success in 2021 would not have been possible without the unwavering support of multiple stakeholders, and I take this opportunity to thank our shareholders, the members of the Board of Directors and the Sharia Supervisory Board, the CBB, the MOITC, the Bahrain Bourse and the Dubai Financial Market, for their unwavering support,” said Prince Amr. “I take this opportunity, also, to thank the Boards of the Directors, the management teams and the employees of our subsidiaries,” he said. – TradeArabia News Service