MANAMA: Ithmaar Holding, a Bahrain-based holding company, has reported a net loss for the three-month period ended December 2020 of $38.43 million compared with the net loss of $11.38m reported for the same period in 2019.
The announcement, by Ithmaar Holding chairman Prince Amr Al Faisal, follows the review and approval by the board of directors of the company’s consolidated financial results for the year ended December 2020.
Total net loss for 2020 was $41.72m, compared with net profit of $0.67m reported for 2019.
The decrease is mainly due to the economic impact of the Covid-19 pandemic. Earnings per share (EPS) for the three-month period were negative 1.32 cents, compared with negative 0.39 cents for the same period in 2019. EPS for 2020 was negative 1.43 cents, compared with positive 0.02 cents for 2019.
Total net loss for the three-month period was $30.26m compared with net loss of $6.69m reported for 2019 mainly due to impairment provisions during the period. Total net loss for 2020 was $21.48m compared with net profit of $12.20m reported for 2019.
Ithmaar Holding’s total owners’ equity stood at $14.76m as of end-2020, an 85 per cent decrease compared with $95.55m as of end-2019. The reduction is mainly attributable to the dramatic economic slowdown caused by the Covid-19 pandemic.
Accumulated losses, as of end-2020, stood at $833.80m and amount to 110pc of the share capital.
Total assets remained stable at $8.38bn as of end-2020, 4pc higher than $8.09bn as of end-2019.
Ithmaar Holding’s investment portfolio comprises major financial institutions such as Ithmaar Bank, Faysal Bank Pakistan, BBK and Solidarity Group Holding, in addition to several other non-financial investments including Naseej and Ithmaar Development Company.
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 position, which will strengthen the company’s consolidated equity. As part of this strategy, Ithmaar Holding and BBK signed, in September 2020, a memorandum of understanding 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 due diligence by both parties, will require shareholders and regulatory approvals.
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