Ithmaar Bank, an Islamic retail lender based in Bahrain, has received the shareholders approval for a new group structure to develop the bank’s core retail banking business.
The plans include the creation of a new holding company that will be licensed and regulated by the Central Bank of Bahrain.
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The new company will be the 100% owner of all assets currently owned by the bank.
Under the new structure, the assets will be allocated into two wholly owned subsidiaries, which include an Islamic retail bank unit and an investment unit.
Ithmaar Bank chairman 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 plans are now subject to regulatory nod.
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By GlobalData"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," Al Faisal added.
