Ithmaar Holding B.S.C — Regulatory Filings 2021

May 16, 2021

Detailed analysis of accumulated losses

Date:	11 May 2021
Listed Company Name:	Ithmaar Holding B.S.C.
Define the period of the financial	Interim Financial information Q1 2021
statements
Accumulated losses:	USD 824.2 million
Accumulated losses to capital	109%
ratio:
The main reasons leading to these	The accumulated losses before reorganization amounted to 68.8% in
accumulated losses and their	December 2016. These represent mainly impairment provisions resulting
history:	from non-core investments as a result of financial crises.
	During 2018, the Company early adopted FAS30 (AAOIFI equivalent of
	IFRS9) which resulted in additional impairment provisions and
	consequently increased the accumulated losses percentage to 98%.
	During 2020, the accumulated losses increased by \$87.5 million mainly due
	to impact of Covid-19. During Q1 2021, the accumulated losses decreased
Measures to be taken to address	by \$9.6 million mainly due to net income attributable to shareholders.
accumulated losses:	The Board of Directors is currently working on various initiatives as follows:
	1. Proposed acquisition by BBK of Ithmaar Bank Bahrain operations:
	Ithmaar Holding and The Bank of Bahrain and Kuwait (BBK) signed during
	September 2020 a Memorandum of Understanding (MoU) on the potential
	acquisition by BBK of Ithmaar Bank's Bahrain operations as well as specific
	assets of IB Capital, a wholly-owned subsidiary of Ithmaar Holding. The
	plans, which are subject to the completion of due diligence by both parties,
	will also require shareholder and regulatory approvals.
	2. Asset Sale and/or Restructuring Plan: Furthermore, Ithmaar's Board of
	Directors is currently working on various initiatives to improve the capital
	base, which will strengthen Ithmaar's equity, including sale and/or
	restructuring of non-core assets, subject to further review, negotiations and
	necessary regulatory approvals.
ارالقابغية	Authorized to signatory

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شركة الإثمار القابضة ش.م.ب.، ص.ب. ٢٨٢٠، برج السيف، ضاحية السيف، مملكة البحرين هاتف: ٩٧٣٠٧٥٨٤٠٠٧ قاكس: ٩٧٣١٧٥٨٤٠١٧ ألبريي الإكثروكي @info.org.com. أكثر المال ١٢٨٢٠ lthmax Holding B.S.C., PO Box 2320, Seef Tower, Seef District, Kingdom of Bahrain Tel +973 1758 4000 Fax +973
مرخص من قبل مصرف البحرين الركزي كشركة استثمارية فئة د Holdised as an Investment Firm Category 1 by the Central