By Staff writer
Islamic bank has received regulatory backing for plans for new group structure designed to develop growth
Ithmaar Bank, a Bahrain-based Islamic bank, has received regulatory backing for its plans for a new group structure designed to develop growth in its core retail banking business.
The plans involve the creation of a new holding company that will be listed on stock markets in Bahrain and Kuwait.
The new holding company will retain 100 percent ownership of all assets presently owned by Ithmaar Bank and will be allocated into two wholly owned subsidiaries - an Islamic retail bank unit and an investment unit.
The new structure was proposed by the bank’s board of directors and approved by shareholders at a meeting in March.
Ithmaar Bank CEO, Ahmed Abdul Rahim, said the new group structure will further consolidate its position as a "strong retail-focused premier Islamic retail bank".
“The reorganisation 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 focussed management of the Group’s investment assets,” he said.
“The new structure will help lower the risk profile of the new banking entity and enhance shareholder value through growth and improved performance in the core business,” he added.For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.