Notes to the Consolidated Financial Statements
(Thousands of US dollars)
55
Dar Al-Maal Al-Islami Trust
Annual Report 2012
14. Investments in
associates
(continued)
The summarised financial information of the Group’s principal associates is as
follows:
Name and
Assets
Liabilities Income Profit/
Published Carrying
Country of
(loss)
price
value
---------% holding---------
incorporation
quotation per share Subsidiary Group
2012
Listed:
Faisal Islamic Bank
of Egypt (Egypt)
6,525,846 6,106,212 507,021 103,993 USD 7.70 USD 8.60
49
49
BBK B.S.C. (Bahrain)
8,242,867 7,474,520 288,151 112,756 BHD .39 BHD .76
25
13
2011
Listed:
Faisal Islamic Bank
of Egypt (Egypt)
5,816,941 5,478,745 371,565 31,403 USD 3.61 USD 7.23
49
49
BBK B.S.C. (Bahrain)
7,334,361 6,703,011 280,637 84,507 BHD 0.41 BHD 0.70
25
13
USD United States Dollar
BHD Bahrain Dinar
Included in investment in associates at 31 December 2012 is $157.1 million
(2011: $175.1 million) of goodwill. The movement is as follows:
2012
2011
At 1 January
174,818
174,818
Additions
-
-
Disposals
(29)
-
Impairment
(17,658)
-
At 31 December
157,131
174,818
Ithmaar Bank holds a 25.38% shareholding in BBK. As per management’s
valuation report, the estimated fair of Ithmaar Bank’s investment in BBK
was determined to be $375.3 million compared to a carrying value of
$393.0 million. Based on this assessment management has impaired BBK’s
carrying value by $17.7 million at 31 December 2012.
Ithmaar Bank received in principle approval from the Central Bank of Bahrain
on 6 December 2010 for the proposed acquisition of the remaining shares in
First Leasing Bank B.S.C. (FLB) through a share swap, subject to compliance
with various conditions.
The shareholders of Ithmaar Bank B.S.C. and First Leasing Bank B.S.C. (FLB)
in their Extraordinary General Meetings held on 21 October 2012 approved the
Transfer of Business from FLB to Ithmaar and the share swap involving issuance
of four ordinary shares of Ithmaar for one ordinary share of FLB directly to the
shareholders of FLB (other than for FLB shares held by or on behalf of Ithmaar).
The Central Bank of Bahrain’s approval was received on 17 February 2013 for
Transfer of Business from FLB to Ithmaar. Ithmaar and FLB are completing the
remaining legal and regulatory requirements.
The impact on DMI’s ownership of Ithmaar Bank B.S.C. share capital resulted
in a dilution from 53.28% to 49.29% effective 1 March 2013. As the Group
maintains control over Ithmaar’s Board of Directors and considering the
dispersed nature of the remaining shareholders, DMI will continue to consolidate
Ithmaar Bank B.S.C. as a subsidiary based upon the Group’s assessment under
IFRS 10.
