Ithmaar Bank achieves record profits

by Richard Kilner

Story link: Ithmaar Bank achieves record profits

The Ithmaar Bank of Bahrain saw its highest ever profits in 2007.

Its net profits hit $188.3m, with operating income skyrocketing up to $339.5m, a rise of 173%.

The previous year had seen a net profit of $181.1m, though that included the selling of Islamic Investment Company of the Gulf (Bahamas) Limited for $105.5m.

Disregarding the one-off subsidiary sale above, the Ithmaar Bank’s profits increased by more than 100% from 2006 to 2007.

Khalid Abdulla-Janahi, the firm’s chairman, has expressed his pleasure at the continuing increase in profits and the strength of the bank’s balance sheet.

The bank has also seen an improvement in its cost to income ratio, from 42.1% to 41.1%, despite a year of expansion in Asia, North America, Europe and the Middle East.

The US subprime mortgage crisis and ensuing credit crunch did not affect Ithmaar Bank, due to its strict risk management of assets.

Its total assets hit $4.1bn, up from $3.3bn last year, with shareholder equity also rising from $792.1m to $1.1bn.