Shamil Bank Chairman, Shaikh Mohamed Abdulla Al Anqari, yesterday (ed note: 26/10/09) welcomed proposed plans for a comprehensive Ithmaar-Shamil reorganisation.

Mohamed Abdulla Abdulaziz Al-Angari Chairman

Plans for the reorganisation, which were announced by the Ithmaar Bank Chairman last week, involves both banks pooling their resources to create a single, more efficient and significantly stronger retail-focused Islamic bank with a bigger, more solid capital base under the Ithmaar brand.

“These plans will see two very successful banks pooling their already very extensive resources, expertise and in-house knowhow to create a single, more powerful bank,” said Shaikh Al Anqari. “This will bring immediate benefits to our shareholders, our customer, our investors and, by extension, Bahrain’s banking and finance industry,” he said.

“Although the proposed plans will see the Shamil Bank Brand replaced by the Ithmaar Bank brand, they will, for all practical purposes, effectively expand Shamil in to a bigger, stronger bank that will operate under the Ithmaar brand,” said Shaikh Al Anqari. “The reorganization will be seamless and there will be no change, whatsoever, in customer, depositor or investor accounts or relationships. Instead, we will continue to offer the same award-winning products and services that were offered by Shamil, as well as introduce additional new products and services, under the Ithmaar Bank brand” he said.

Faisal Mansoor Al-Alwan Chief Executive

“The Boards of both Shamil and Ithmaar have repeatedly stressed that our focus, from the outset of global financial crisis, has shifted to protecting our individual balance sheets and the interests of our shareholders, our investors and our depositors. It is a position we have maintained throughout the crisis – and it has paid off, for both banks, with positive end of year results for 2008,”said Shaikh Al Anqari. “This strategy has continued to work well, for both Ithmaar and Shamil, this year,” he said.

“In 2008, we launched a new business line, international banking, to focus up on servicing large government institutions in the GCC and MENA regions,” said Shaikh Al Anqari. “The introduction of international banking is an integral part of our strategic plan and has since opened up tremendous new opportunities with particularly low risk clients,” he said.

“The proposed reorganisation plans will contribute, significantly, to further bolstering the capital and balance sheet of the Bank,” said Shamil Bank Chief Executive Faisal Al Alwan. “This will also contribute to further improving liquidity, lowering the risk profile and enhancing shareholder value by amplifying already existing synergies. Consequently, Ithmaar Bank will be in an ideal position to best capitalise on the business opportunities that are now being created,” he said.

Under the proposed plans, which have received the Central Bank of Bahrain’s No Objection but are still subject to shareholder approval, the assets, liabilities and business of Shamil will be acquired by Ithmaar. Following the reorganisation, Ithmaar will undertake retail banking activities locally and regionally while maintaining its investment, international and treasury banking activities. The Bank will apply Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) standards.