MANAMA, 1 March 2007 — Ithmaar Bank, a globally-focused investment bank based in Bahrain, announced yesterday a record net profit of $183.8 million for 2006, a five-fold leap from the $37.6 million earned the previous year.
The new record profit was supported by an equally impressive operating profit, which surged 418.5 percent to $70 million, compared with $13.5 million in 2005. The cost to income ratio fell from 69 percent to 41 percent. Total assets surged to $3.2 billion at 2006-end, from $442 million at 2005-end, shareholders’ equity trebled to $984 million, from $247 million the previous year, and funds under management reached $1.1 billion.
In view of these excellent results, the bank’s board of directors, which met on Tuesday, put forward a recommended cash dividend of 13.5 percent, subject to the Central Bank of Bahrain’s approval. The proposal will be presented for shareholder approval at the annual general meeting, to be held on March 19. A total of $47.7 million, or 13.5 cents per share, is recommended for distribution, an increase of 138 percent from the $20 million distributed in 2005. The board also advises that $130 million be transferred to retained earnings account and $16.8 million to the bank’s general reserve.
Ithmaar Bank Chairman Khalid Abdulla-Janahi said that this milestone year was driven by a strong performance in all areas of business, including that of associates and subsidiaries, especially Shamil Bank of Bahrain, Solidarity, First Leasing Bank, Faysal Bank Limited (Pakistan) and Faisal Private Bank S.A. (Switzerland).