MANAMA: Bahrain-based investment banking group Ithmaar Bank and its subsidiaries, including Shamil Bank Bahrain, are enjoying the lowest leveraging among the financial institutions showing the robustness of the balance sheet, a top official at the group said.
“We are a balance sheet-driven banking group as the soundness of balance sheet at the end makes or breaks the business. We don’t have any liquidity problem but the cautious approach doesn’t necessarily mean the group has any liquidity issues,” Khalid Janahi, chairman of Ithmaar Bank, told the shareholders of the group at the annual general meeting held at the Gulf Hotel.
Over 74 percent of shareholders attended the meeting and some of the stakeholders questioned the top management about the investment losses of $54 million reported by Ithmaar bank in the year 2008.
“We have had no problems with our business strategy and the losses were largely due to the slump in the markets including GCC (Gulf Cooperation Council),” Janahi said. “The year 2009 will be extremely a tough year for us and the bank will continue to focus on tackling the balance sheet and also protecting out liquidity. Any haphazard decision to go for big investment will be not an option in 2009 and beyond,” he added.
The shareholders approved the financial statement for the year 2008 amidst skepticism by some shareholders about the bank’s 2009 business model.
“Despite the global financial crisis, 2008 had proved a positive year for the bank, and for its subsidiaries and associates. Lee also announced that, following shareholder approval, one bonus share will be issued for every ten shares held,” said Michael P. Lee, Ithmaar Bank chief executive officer and member of the board.
Lee attributed much of the bank’s 2008 achievements to the group’s diversity. “Collectively, we have weathered the global 2008 financial storm and concluded the year with a satisfactory performance,” he said.
