Ithmaar B S C : Financial Statements for the three months period ended 31 March 2024

ITHMAAR BANK B.S.C. (c)

CONDENSED CONSOLIDATED INTERIM FINANCIAL INFORMATION 31 MARCH 2024

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ITHMAAR BANK B.S.C. (c)

CONDENSED CONSOLIDATED INTERIM FINANCIAL INFORMATION FOR THE THREE MONTHS PERIOD ENDED 31 MARCH 2024

Contents	Pages
Independent auditors' report on review of condensed consolidated interim financial
information	3 - 4
Condensed consolidated statement of financial position	5
Condensed consolidated statement of income	6
Condensed consolidated statement of total comprehensive income	7
Condensed consolidated statement of income and attribution related to quasi-
equity	8
Condensed consolidated statement of changes in owners' equity	9
Condensed consolidated statement of cash flows	10
Condensed consolidated statement of changes in off-balance-sheet
assets under management	11
Notes to the condensed consolidated interim financial information	12-29

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Ithmaar Bank B.S.C. (c)

Condensed consolidated statement of financial position as at 31 March 2024

(Expressed in thousands of Bahraini Dinars unless otherwise stated)

	Note	At 31 March 2024	At 31 December 2023
		(Reviewed)	(Audited)
ASSETS
Cash and balances with banks and central banks		17,738	135,403
Commodity placements with banks,
financial and other institutions		19,078	4,908
Financing assets	3	320,485	1,163,742
Investment securities	4	36,431	860,688
Investment in associates		-	2,396
Other assets	5	690	38,106
Investment in real estate		-	3,989
Development properties		-	57,280
Property and equipment		107	57,669
Intangible assets		587	6,617
		395,116	2,330,798
Assets classified as held for sale	16	2,126,417	-
Total assets		2,521,533	2,330,798
LIABILITIES
Customers' current accounts		81,526	654,158
Due to banks, financial and other institutions		199,997	450,303
Due to investors		-	3,260
Other liabilities		15,574	100,198
		297,097	1,207,919
Liabilities directly associated with assets classified as held for sale	16	1,053,887	-
Total liabilities		1,350,984	1,207,919
QUASI EQUITY
- Quasi equity		10,002	1,029,941
- Quasi equity directly associated with
assets classified as held for sale	7,16	1,067,386	-
Total quasi equity		1,077,388	1,029,941
OWNERS' EQUITY
Share capital	8	100,000	100,000
Reserves	9	(53,304)	(53,304)
Accumulated losses		(2,373)	(6,620)
Total owners' equity		44,323	40,076
Non-controlling interest		612	52,862
Non-controlling interest classified as held for sale	16	48,226	-
Total equity		93,161	92,938
Total liabilities, quasi equity and total equity		2,521,533	2,330,798

This condensed consolidated interim financial information was approved by the Board of Directors on 14 May 2024 and signed on its behalf by:

HRH---------------------------------------------------PrinceAmr Mohammed Al-Faisal	--------------------------------------
Elham Hassan
Chairman	Director

The accompanying notes 1 to 16 form an integral part of the condensed consolidated interim financial information.

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Ithmaar Bank B.S.C. (c)

Condensed consolidated statement of income for the three months period ended 31 March 2024

(Expressed in thousands of Bahraini Dinars unless otherwise stated)

	Three months ended
	31 March 2024			31 March 2023
	(Reviewed)	(Reviewed)
NET RESULTS FROM CONTINUING OPERATIONS
Income from financing contracts	1,513			1,585
Income from investments	426			405
Other income/(loss)	15			(2,860)
Total income	1,954			(870)
Finance expense on placements from financial and
non-financial institutions	(803)			(165)
Net income	1,151			(1,035)
Operating expenses	(947)			(824)
Allowances for impairment and expected credit losses, net	-			(417)
Profit/ (loss) from continuing operations	204			(2,276)
NET RESULTS FROM DISCONTINUED OPERATIONS
Income from financing contracts	37,983			26,442
Income from investments	47,515			26,105
Other income - net	4,875			3,312
Finance expense on placements from financial and
non-financial institutions	(1,531)			(944)
Net income from jointly financed assets	88,842			54,915
Share of loss from equity accounted investees	128			-
Total income	88,970			54,915
Operating expenses	(15,039)			(12,115)
Depreciation and amortization	(1,513)			(1,277)
Total expenses	(16,552)			(13,392)
Net operating income before impairment allowances and
attribution to quasi equity	72,418			41,523
Allowances for impairment and expected credit losses, net	(746)			(2,778)
Profit for the period before attribution to quasi equity	71,672			38,745
Less: Net income attributable to quasi-equity	(56,305)			(33,040)
Profit before overseas taxation	15,367			5,705
Tax expense	(7,831)			(3,658)
NET RESULTS FROM DISCONTINUED OPERATIONS	7,536			2,047
PROFIT/ (LOSS) FOR THE PERIOD	7,740			(229)
Attributable to:
Equity holders of Ithmaar	4,247			(1,802)
Non-controlling interest	3,493			1,573
	7,740			(229)
---------------------------------------------------	--------------------------------------
HRH Prince Amr Mohammed Al-Faisal	Elham Hassan
Chairman	Director

The accompanying notes 1 to 16 form an integral part of the condensed consolidated interim financial information.

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Ithmaar Bank B.S.C. (c)

Condensed consolidated statement of total comprehensive income for the three months period ended 31 March 2024

(Expressed in thousands of Bahraini Dinars unless otherwise stated)

	Three months ended
	31 March 2024		31 March 2023
	(Reviewed)		(Reviewed)
Profit/(loss) for the period	7,740	(229)
Other comprehensive income
Items that will not be classified to statement of income
Fair value changes on land and building	(434)	(87)
Attributable to quasi-equity	289	58
Items that may subsequently be classified to income statement
Exchange difference arising on translation of foreign operations	1,295	(23,642)
Fair value changes on investments in real estate	(179)	(87)
Fair value changes on investments carried at fair value through OCI	328	(467)
Attributable to quasi-equity	(1,246)		16,812
Total other comprehensive income for the year	53		(7,413)
Total comprehensive income	7,793	(7,642)
Attributable to:
Equity holders of Ithmaar	4,247	(1,802)
Non-controlling interest	3,546		(5,840)
	7,793	(7,642)

The accompanying notes 1 to 16 form an integral part of the condensed consolidated interim financial information.

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Ithmaar Bank B.S.C. (c)

Condensed consolidated statement of income and attribution related to quasi-equity for the three months period ended 31 March 2024

(Expressed in thousands of United States Dollars unless otherwise stated)

	Three months ended
	31 March 2024		31 March 2023
	(Reviewed)		(Reviewed)
Net operating income before impairment allowances and attribution to
quasi equity	124,241	86,679
Adjusted for:
Less: income not attributable to quasi-equity	(52,405)	(26,557)
Add: expenses not attributable to quasi-equity	17,499	14,216
Less: institution's share of income for its own/ share of investments	(426)	(405)
Less: allowance for impairment allowances attributable to quasi-equity	(746)		(2,778)
Total income available for quasi-equity holders	88,163	71,155
Fair value reserve - net movement	-	-
Profit equalization reserve - net movement	-		-
Total income attributable to quasi-equity holders (adjusted for reserves)	88,163	71,155
Less: Mudarib's share	(32,815)		(21,245)
Profit distributable to quasi-equity	55,348	49,910
Other comprehensive income - attributable to quasi-equity - before
recycling to statement of income
Items that will not be classified to income statement	(289)	(58)
Items that may subsequently be classified to income statement	1,246	(16,812)
Add/ (less): net effect of items recycled to income statement	-	-
Other comprehensive income - attributable to quasi-equity - net of
recycling to income statement	56,305	33,040
Less: other comprehensive income not subject to immediate distribution	-	-
Other comprehensive income subject to immediate distribution	-		-
Total profit attributable to quasi-equity	56,305	33,040

The accompanying notes 1 to 16 form an integral part of the condensed consolidated interim financial information.

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Ithmaar Bank B.S.C. (c)

Condensed consolidated statement of changes in owners' equity

for the three months period ended 31 March 2024

(Expressed in thousands of Bahraini Dinars unless otherwise stated)

				Total	Non-
	Share		Accumulated	owners'	controlling	Total
	capital	Reserves	losses	equity	interests	equity
At 1 January 2024	100,000	(53,304)	(6,620)	40,076	52,862	92,938
Profit for the period	-	-	4,247	4,247	3,493	7,740
Other comprehensive income for
the period	-	-	-	-	53	53
Total comprehensive income for
the period	-	-	4,247	4,247	3,546	7,793
Movement from dividend
distribution by subsidiaries	-	-	-	-	(915)	(915)
Decrease in shareholding of subsidiary	-	-	-	-	(6,655)	(6,655)
At 31 March 2024 (Reviewed)	100,000	(53,304)	(2,373)	44,323	48,838	93,161
				Total	Non-
	Share		Accumulated	owners'	controlling
	capital	Reserves	losses	equity	interest	Total equity
At 1 January 2023	100,000	(53,699)	(10,182)	36,119	43,218	79,337
Profit/ (loss) for the period	-	-	(1,802)	(1,802)	1,573	(229)
Other comprehensive income for
the period	-	-	-	-	(7,413)	(7,413)
Total comprehensive income for
the period	-	-	(1,802)	(1,802)	(5,840)	(7,642)
Movement from dividend
distribution by subsidiaries	-	-	-	-	(743)	(743)
At 31 March 2023 (Reviewed)	100,000	(53,699)	(11,984)	34,317	36,635	70,952

The accompanying notes 1 to 16 form an integral part of the condensed consolidated interim financial information.

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Ithmaar Bank B.S.C. (c)

Condensed consolidated statement of cash flows for the three months period ended 31 March 2024 (Expressed in thousands of Bahraini Dinars unless otherwise stated)

	Three months ended
	31 March 2024	31 March 2023
	(Reviewed)	(Reviewed)
OPERATING ACTIVITIES
Net profit/ (loss) before taxation from:
Continuing operations	699	(1,819)
Discontinued operations	15,367	5,705
Adjustments for:
Depreciation and amortization	1,513	1,277
Provision for impairment - net	746	2,778
Income from investment securities	(47,515)	(26,093)
Finance cost on net ijarah liability	543	522
Loss on sale of property and equipment	(6)	(12)
Operating loss before changes in operating
assets and liabilities	(28,653)	(17,642)
Net changes in operating assets and liabilities:
Balances with banks maturing after 90 days including
central banks balances relating to minimum reserve
requirement	926	(5,578)
Financing assets	(1,494)	(49,342)
Other assets	(15,416)	(30,176)
Customers' current accounts	(14,763)	11,130
Due to banks, financial and other institutions	140,133	115,718
Due to investors	(208)	(7,206)
Other liabilities	3,600	30,191
Quasi equity	30,600	(26,313)
Taxes paid	(9,437)	(7,036)
Net cash generated from operating activities	105,288	13,746
INVESTING ACTIVITIES
Net changes in:
Investment securities	(54,518)	(13,347)
Property and equipment	(4,245)	(5,337)
Net cash used in investing activities	(58,763)	(18,684)
FINANCING ACTIVITY
Repayment of net Ijarah liability	(795)	(782)
Net cash used in financing activity	(795)	(782)
Foreign currency translation adjustments	1,039	(7,277)
Net increase/(decrease) in cash and cash equivalents	46,769	(12,997)
Cash and cash equivalents at the beginning of the period	122,814	125,656
Cash and cash equivalents at the end of the period	169,583	112,659
Details of cash and cash equivalents:
Cash and balances with banks and central banks	17,793	114,317
Commodity and other placements with banks,
financial and other institutions	19,079	16,358
Add: Assets classified as held for sale	149,409
Less: Placements with original maturing after 90 days
and balances with central banks relating to
minimum reserve requirement	(16,698)	(18,016)
Cash and cash equivalents at the end of the period	169,583	112,659

The accompanying notes 1 to 16 form an integral part of the condensed consolidated interim financial information.

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