Ithmaar Holding

1. Company Overview & Earnings Context

Ithmaar Holding reported a profitable Q1 2026 performance despite continued balance sheet restructuring efforts and challenging regional economic conditions. The Group operates across retail banking, investment banking, asset management, and real estate activities through subsidiaries including Ithmaar Bank and Faysal Bank Pakistan.

Management highlighted ongoing efforts to strengthen the Group’s capital position, liquidity profile, and long-term financial sustainability through its equity strengthening plans and restructuring initiatives.

2. Financial Performance Snapshot

• Total income: USD 180.4M

• Net income: USD 178.3M

• Profit before tax: USD 29.3M

• Net profit: USD 6.9M

• Profit attributable to shareholders: USD 1.2M

• Basic & diluted EPS: 0.04 US cents

Compared to Q1 2025:

• Total income remained relatively stable at USD 180.4M versus USD 182.0M

• Net profit declined slightly from USD 7.4M to USD 6.9M

3. Operational Highlights & Key Metrics

• Total assets: USD 7.42B

• Financing contracts: USD 3.20B

• Investment securities: USD 2.61B

• Cash & balances with banks: USD 510.5M

• Customers’ current accounts: USD 2.70B

• Quasi-equity balances: USD 2.90B

Segment highlights:

• Retail & corporate banking remained the largest contributor to profitability

• Asia operations generated USD 19.7M profit during the quarter

• Investment securities portfolio increased to USD 2.61B

4. Key Performance Drivers

• Stable financing income supporting overall revenue generation

• Investment income declined year-on-year from USD 95.8M to USD 80.7M

• Operating expenses increased to USD 61.4M

• Net impairment charges improved significantly compared to Q1 2025

• Quasi-equity profit attribution remained substantial at USD 88.0M

The Group also revised expected credit loss assumptions due to heightened geopolitical uncertainty in the Middle East region.

5. Outlook & Forward Guidance

• Continued focus on strengthening the Group’s capital position and liquidity profile

• Planned rights issue of up to USD 100M subject to regulatory approvals

• Ongoing restructuring initiatives to improve long-term financial sustainability

• Continued focus on recovery of financing exposures and operational stability

• Management remains focused on maintaining regulatory support and liquidity resilience

6. 🧾 Investor Takeaway

Ithmaar Holding delivered a stable Q1 2026 performance with resilient income generation, improved shareholder profitability, and continued progress on balance sheet restructuring initiatives, while remaining exposed to regional macroeconomic and capital management challenges.