Ithmaar Bank, a Bahrain-based Islamic retail bank, reported profits for the year ended December 31, 2025.
The announcement, by Ithmaar Bank chairman Prince Amr Al Faisal, follows the review and approval of the board of directors of the bank’s consolidated financial results.
Ithmaar Bank reported a net profit attributable to equity holders for the year ended December 31, 2025 of BD4.40 million, a 56.6 per cent decrease compared to the net profit attributable to equity holders of BD10.14m reported for 2024.
Total net profit for the year ended December 31, 2025 is BD14.38m compared to the total net profit of BD18.80m reported for 2024. The decrease is mainly due to reduced spreads in their overseas business resulting from the decreasing profit rate environment.
“On behalf of the Ithmaar Bank board of directors, I am pleased to report that Ithmaar Bank continues to deliver steady profits as we strengthen our focus on providing products and services tailored to the financial and investment needs of small and medium enterprises, corporates and institutions,” said Prince Amr.
“Since 2024, the bank’s management has worked diligently to drive growth in our core Islamic banking operations in Bahrain and Pakistan while enhancing the value of our strategic investments. The bank has regained strong momentum and is progressing confidently towards its full potential. We remain firmly committed to achieving sustainable profitability,” he said.
Ithmaar Bank has continued to achieve growth in the face of significant challenges, according to Ithmaar Bank chief executive officer Maysan Al Maskati. Following record profits in 2024, the management’s efforts aimed at sustainable profitability for the bank, despite prevailing market conditions, have borne fruit.
“Ithmaar Bank has delivered another year of robust performance, underscoring its commitment to sustainable growth and operational excellence,” said Mr Al Maskati. “Our continued progress is reflected in the significant increase in customer liabilities, with current accounts and quasi-equity balances reaching BD2.25 billion as at December 31, 2025 – a notable 31.1pc increase from BD1.71bn the previous year. This achievement has further strengthened our liquidity position, as cash and commodity placement balances grew by 15.7pc to BD237.45m from BD205.21m in the previous year,” he said.
“Our prudent management of funding costs – evidenced by a 30.6pc reduction in profits paid to quasi-equity holders, has helped the bank navigate the challenging market environment characterised by high benchmark rates, and offset the 17.8pc decrease in total income,” said Mr Al Maskati. “Additionally, our focused efforts on recovering non-performing financing have led to notable cash recoveries and a BD9.28m year-on-year reduction in net impairment provisions,” he said.
He added: “Our strategic recruitment of key management personnel throughout 2025 has reinforced our organisational structure, positioning Ithmaar Bank for continued expansion in 2026.
Guided by our board of directors, we are also actively engaging with major shareholders to explore initiatives that will further enhance our balance sheet position and support long-term value creation.”
Total equity attributable to shareholders of the bank has reached to BD54.94m as of December 31, 2025, an 8.71pc increase from BD50.54m as of December 31, 2024.
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