Ithmaar Holding reports results for the third quarter ended 30 September 2020

Published 14 Nov,2020 via bizbahrain - Ithmaar Holding B.S.C. (Trading symbol: ITHMR), a Bahrain-based holding company, announced its financial results for the nine-month period ended 30 September 2020, including the third quarter of 2020.

The announcement, by Ithmaar Holding Chairman His Royal Highness Prince Amr Al Faisal, follows the review and approval of the Board of Directors of the Company’s consolidated financial results for the nine-month period ended 30 September 2020.

Ithmaar Holding reported a net loss attributable to equity holders for the three-month period ended 30 September 2020 was US$1.99 million compared to the net profit of US$3.68 million reported for the same period in 2019. Earnings Per Share (EPS) for the three-month period ended 30 September 2020 was negative US Cents 0.07, compared to positive US Cents 0.13 for the same period in 2019.

Ithmaar Holding reported a net profit for the three-month period ended 30 September 2020 was US$1.4 million, a 77 percent decrease compared to the net profit of US$5.9 million reported for the same period in 2019.

Ithmaar Holding reported a net loss attributable to equity holders for the nine-month period ended 30 September 2020 of US$3.29 million compared to the net profit of US$12.04 million reported for the same period in 2019. The decrease is mainly due to the economic impact of the Covid-19 pandemic. EPS for the nine-month period ended 30 September 2020 were negative US Cents 0.11, compared to positive US Cents 0.41 for the same period in 2019.

Overall, the Company’s results show a net profit for the nine-month period ended 30 September 2020 of US$8.78 million, a 54 percent decrease compared to the net profit of US$18.89 million reported for same period in 2019.

Ithmaar Holding’s total owners’ equity stood at US$10.07 million as at 30 September 2020, a 89 percent decrease compared to US$95.55 million as at 31 December 2019, mainly due to the dramatic economic slowdown cause by the Covid-19 pandemic.

Accumulated losses, as at 30 September 2020, of US$797.6 million amounted to 105 percent of the share capital, compared to 98.5 percent as at 31 December 2019. Total assets remained stable, at US$8.29 billion as at 30 September 2020, 3 percent higher than US$8.09 billion as at 31 December 2019.

In line with Ithmaar Holding’s strategy of creating value for its shareholders, the Board of Directors is working on various initiatives to improve the capital, which will strengthen the Company’s consolidated equity, including the possible sale or restructuring of underlying non-core assets, subject to necessary regulatory approvals. As part of this strategy, Ithmaar Holding and The Bank of Bahrain and Kuwait (BBK) signed during September 2020 a Memorandum of Understanding (MoU) on the potential acquisition by BBK of Ithmaar Bank’s Bahrain operations as well as specific assets of IB Capital, a wholly-owned subsidiary of Ithmaar Holding. The plans, which are subject to the completion of due diligence by both parties, will also require shareholder and regulatory approvals.

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