Shareholders with Ithmaar Bank, an Islamic retail bank based in Bahrain, recently approved of the new group structure plans that will help the core retail banking business grow along with the bank’s strategic focus.
The new plans were part of a proposal from the bank's board of directors and are still subject to approvals and further changes.
"On behalf of the board of drectors, I am pleased to announce that the strategic decisions we took early in 2014, which were designed to significantly transform the group's operations, are continuing to deliver positive results, and the new group structure is the next key step in this transformation," Ithmaar Bank Chairman Prince Amr Al Faisal said. "This new structure is designed to assist in realising our long-term strategy for growth by providing greater insight into the strength of our core retail banking operations and further facilitating the management of the group's investment assets.”
The new structure will better allow the bank to compete with the global market.
"This new group structure follows extensive internal review and discussions, and is driven by our commitment to ensuring we are well positioned to benefit from new opportunities in the current market," Prince Amr said. "The new structure will help lower the risk profile of the new banking entity and enhance shareholder value by showing the growth and improved performance achieved in the core business. In the current structure, this growth is being adversely impacted by investment valuations and impairment provisions.”