Ithmaar B S C : Financial Statements for the six months period ended 30 June 2021.

ITHMAAR BANK B.S.C. (C)

INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION FOR THE SIX MONTH PERIOD ENDED 30 JUNE 2022

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ITHMAAR BANK B.S.C. (C)

INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION FOR THE SIX MONTH PERIOD ENDED 30 JUNE 2022

Contents	Pages
Independent auditor's review report		3
Interim condensed consolidated statement of financial position		4
Interim condensed consolidated income statement		5
Interim condensed consolidated statement of changes in owners' equity		6 - 7
Interim condensed consolidated statement of cash flows		8
Interim condensed consolidated statement of changes in restricted
investment accounts	9	- 10
Notes to the interim condensed consolidated financial information	11	- 27

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Review report on the interim condensed consolidated financial information to the Board of Directors of Ithmaar Bank B.S.C. (c)

Introduction

We have reviewed the accompanying interim condensed consolidated statement of financial position of Ithmaar Bank B.S.C. (c) (the "Bank") and its subsidiaries (the "Group") as at 30 June 2022 and the related interim condensed consolidated income statement for the three and six month periods then ended, and the related interim condensed consolidated statements of changes in owners' equity, cash flows and changes in restricted investment accounts for the six month period then ended and explanatory notes. The directors are responsible for the preparation and presentation of this interim condensed consolidated financial information in accordance with the basis of preparation stated in note 2 to this interim condensed consolidated financial information. Our responsibility is to express a conclusion on this interim condensed consolidated financial information based on our review.

Scope of Review

We conducted our review in accordance with International Standard on Review Engagements 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity". A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the accompanying interim condensed consolidated financial information is not prepared, in all material respects, in accordance with the basis of preparation stated in note 2 to this interim condensed consolidated financial information.

Elias Abi Nakhoul

Partner's registration number: 196 PricewaterhouseCoopers M.E Limited Manama, Kingdom of Bahrain

28 August 2022

PricewaterhouseCoopers M.E Limited, Office no. 4701, Building no. 1459, Road no. 4626,

Block no. 346, P.O. Box 60771, Manama/Sea Front, Kingdom of Bahrain, Floor 47, West Tower,

Bahrain Financial Harbour, T: [phone], F: [phone], www.pwc.com/me, CR no. 47378

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Ithmaar Bank B.S.C. (C)

Interim condensed consolidated statement of financial position

(Expressed in thousands of Bahraini Dinars unless otherwise stated)

	Note	At 30 June 2022	At 31 December 2021
		(Reviewed)	(Audited)
ASSETS
Cash and balances with banks and central banks	3	240,933	196,839
Commodity and other placements with banks,
financial and other institutions	4	30,010	70,290
Murabaha and other financings	5	943,560	1,270,306
Musharaka financing	6	583,976	537,505
Sukuk and investment securities	7	711,277	893,129
Investment in associates	8	1,433	2,456
Assets acquired for leasing		1,206	147,716
Other assets	9	61,641	63,834
Investment in real estate		4,104	2,467
Development properties		65,551	64,632
Fixed assets		44,253	55,682
Intangible assets		10,081	22,643
		2,698,025	3,327,499
Assets classified as held for sale	18	582,038	-
Total assets		3,280,063	3,327,499
LIABILITIES, EQUITY OF UNRESTRICTED INVESTMENT
ACCOUNTHOLDERS AND TOTAL EQUITY
LIABILITIES
Customers' current accounts		701,392	726,981
Due to banks, financial and other institutions		526,817	526,603
Due to investors		77,685	420,047
Other liabilities		127,419	135,544
		1,433,313	1,809,175
Liabilities directly associated with assets classified
as held for sale	18	66,372	-
Total liabilities		1,499,685	1,809,175
Equity of unrestricted investment accountholders	11	936,662	1,421,392
Equity of unrestricted investment accountholders directly
associated with assets classified as held for sale	11,18	762,634	-
Total equity of unrestricted investment accountholders		1,699,296	1,421,392
Total liabilities and equity of unrestricted investment
accountholders		3,198,981	3,230,567
Share capital	12	100,000	100,000
Reserves		(52,182)	(40,120)
Accumulated losses		(14,656)	(16,150)
Total owners' equity		33,162	43,730
Non-controlling interest		47,920	53,202
Total Equity		81,082	96,932
Total liabilities, equity of unrestricted investment
accountholders and total equity		3,280,063	3,327,499

This interim condensed consolidated financial information was approved by the Board of Directors on 28 August 2022 and signed on its behalf by:

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HRH Prince Amr Mohamed Al Faisal	Elham Hasan	Ahmed Abdul Rahim
Chairman	Director	CEO

The notes 1 to 18 on pages 11 to 27 form an integral part of the interim condensed consolidated financial information.

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Ithmaar Bank B.S.C. (C)

Interim condensed consolidated income statement

(Expressed in thousands of Bahraini Dinars unless otherwise stated)

		Six months ended	Three months ended
	Note	30 June 2022	30 June 2021	30 June 2022	30 June 2021
		(Reviewed)	(Reviewed)	(Reviewed)	(Reviewed)
INCOME
Income from unrestricted investment accounts		71,012	39,582	43,786	22,476
Less: return to unrestricted investment
accountholders and impairment provisions		(34,799)	(19,883)	(22,798)	(10,251)
Group's share of income from unrestricted
investment accounts as a Mudarib		36,213	19,699	20,988	12,225
Income from murabaha and other financings		10,610	18,360	4,660	9,116
Income from sukuk and investment securities		16,760	22,171	8,185	11,635
Other income		8,237	10,032	4,013	4,520
Total income		71,820	70,262	37,846	37,496
Less: profit paid to banks, financial and
other institutions - net		(27,815)	(30,180)	(14,034)	(14,764)
Operating income		44,005	40,082	23,812	22,732
EXPENSES
Administrative and general expenses		(27,270)	(27,574)	(13,650)	(15,417)
Depreciation and amortization		(4,350)	(4,470)	(2,146)	(2,050)
Total expenses		(31,620)	(32,044)	(15,796)	(17,467)
Net income before provision for
impairment and overseas taxation		12,385	8,038	8,016	5,265
(Reversal of)/provision for impairment - net	10	246	4,046	(892)	690
Net income before overseas taxation		12,631	12,084	7,124	5,955
Overseas taxation		(8,765)	(6,475)	(5,294)	(3,275)
NET INCOME FROM CONTINUING OPERATIONS
	3,866	5,609	1,830	2,680
Net results from discontinued operations	18	(344)	(2,201)	190	(819)
NET INCOME FOR THE PERIOD
	3,522	3,408	2,020	1,861

Attributable to:

Equity holders of the Bank

Non-controlling interests

Basic and diluted earnings per share

Basic and diluted earnings per share - continuing operations

	1,494	534	1,298	381
	2,028	2,874	722	1,480
	3,522	3,408	2,020	1,861
14	Fils 1.49	Fils 0.53	Fils 1.30	Fils 0.38
14	Fils 1.84	Fils 2.74	Fils 1.11	Fils 1.20

This interim condensed consolidated financial information was approved by the Board of Directors on 28 August 2022 and signed on its behalf by:

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HRH Prince Amr Mohamed Al Faisal	Elham Hasan	Ahmed Abdul Rahim
Chairman	Director	CEO

The notes 1 to 18 on pages 11 to 27 form an integral part of the interim condensed consolidated financial information.

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