Ithmaar B S C : Liquidity Disclosures Basel III – 31 March 2024

Ithmaar Bank B.S.C (c)

Liquidity Disclosures - Basel III

31 March 2024

Liquidity Coverage Ratio

One of the key requirements of the revised CBB guidelines includes the computation and disclosure of the Liquidity Coverage Ratio (LCR). LCR has been developed to promote short-term resilience of a bank's liquidity risk profile. The LCR requirements aim to ensure that a bank has an adequate stock of unencumbered high-quality liquidity assets (HQLA) that consists of assets that can be converted into cash immediately to meet its liquidity needs for a 30-calendar day stressed liquidity period. The below table describes the average 90 day LCR of Ithmaar Bank on a consolidated basis as of 31 March 2024.

	Pillar 3 LCR Common Disclosure Template
	For the Quarter ended	31/03/2024
			BD 000
BD 000	Total Unweighted Value	Total Weighted Value
(average)	(average)
HIGH-QUALITY LIQUID ASSETS
1	Total HQLA		577,598
CASH OUTFLOWS
2	Retail deposits and deposits from small business customers, of
which:
3	Stable deposits	561	17
4	Less stable deposits	675,014	65,821
5	Unsecured wholesale funding, of which:
6	Operational deposits (all counterparties) and deposits in networks
of cooperative banks	25,173	6,293
7	Non-operational deposits (all counterparties)	816,706	503,474
8	Unsecured debt	-	-
9	Secured wholesale funding		-
10	Additional requirements, of which:
11	Outflows related to derivative exposures and other collateral
requirements	2,327	2,327
12	Outflows related to loss of funding on debt products	-	-
13	Credit and liquidity facilities	86,401	6,480
14	Other contractual funding obligations	71,634	71,634
15	Other contingent funding obligations	426,191	21,310
16	TOTAL CASH OUTFLOWS	-	677,356
CASH INFLOWS
17	Secured lending (eg reverse repos)	-	-
18	Inflows from fully performing exposures	216,581	117,909
19	Other cash inflows	-	-
20	TOTAL CASH INFLOWS	216,581	117,909
			TOTAL ADJUSTED VALUE
21	TOTAL HQLA		577,598
22	TOTAL NET CASH OUTFLOWS		559,446
23	LIQUIDITY COVERAGE RATIO (%)		103%

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Net Stable Funding Ratio (NSFR)

One of the key requirements of the revised CBB guidelines includes the computation and disclosure of the Net Stable Funding Ratio (NSFR). The NSFR requires banks to maintain a stable funding profile in relation to assets and off-balance sheet activities. The following table details the NSFR of Ithmaar Bank B.S.C (c) as of 31 March 2024 on a consolidated basis.

						BD 000
		Unweighted Values (i.e. before applying relevant factors)
				More
No.	Item	No	Less than 6	than 6		Total weighted
specified	months and	Over one year	value
		months
		maturity	less
				than one year
Available Stable Funding (ASF):
1	Capital:	114,321	0	0	7,407	121,728
2	Regulatory Capital	114,321				114,321
3	Other Capital Instruments				7,407	7,407
4	Retail deposits and deposits from small business	0	622,764	49,070	2,324	608,740
customers:
5	Stable deposits	0	34,505	794	16	33,550
6	Less stable deposits	0	588,259	48,276	2,308	575,190
7	Wholesale funding:	0	680,453	302,584	357,232	692,524
8	Operational deposits			0		0
9	Other wholesale funding		680,453	302,584	357,232	692,524
10	Other liabilities:	0	388,721	0	6,777	6,777
11	NSFR Shari'a-compliant hedging contract liabilities		7,751
12	All other liabilities not included in the above categories		380,971		6,777	6,777
13	Total ASF					1,429,769
Required Stable Funding (RSF):
14	Total NSFR high-quality liquid assets (HQLA)					42,131
15	Deposits held at other financial institutions for operational			0		0
purposes
16 Performing loans and securities:		478,709	79,322	684,364	816,715

17 Performing loans to financial institutions secured by Level 1 HQLA

	Performing loans to financial institutions secured by
18	non-Level 1 HQLA and unsecured performing loans to	39,761	4,637	2,869	11,152
	financial institutions
	Performing loans to non- financial corporate clients,
19	loans to retail and small business customers, and	438,948	74,685	526,888	704,671
loans to sovereigns, central banks and PSEs, of
	which:

20	- With a risk weight of less than or equal to 35% as
per the CBB Capital Adequacy Ratio guidelines
21	Performing residential mortgages, of which:
22	- With a risk weight of less than or equal to 35%
under the CBB Capital Adequacy Ratio Guidelines
23	Securities that are not in default and do not qualify as
HQLA, including exchange-traded equities

129,329	84,064
24,146	15,695
1,133	1,133

24 Other assets:

0

282,029

0

0

282,029

1. Physical traded commodities, including gold
   Assets posted as initial margin for Shari'a-compliant
2. hedging contracts contracts and contributions to default funds of CCPs

27	NSFR Shari'a-compliant hedging assets	0		0
28	NSFR Shari'a-compliant hedging contract liabilities	1,550		1,550
before deduction of variation margin posted
29	All other assets not included in the above categories	280,479	0	280,479
30	OBS items	599,822		29,991
31	Total RSF			1,170,866
32	NSFR (%)			122.11%

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Leverage Ratio

The Central Bank of Bahrain issued regulations on the financial leverage ratio as part of the CA: Capital Adequacy Module Chapter 10, which was implemented as of 30 September 2019.

The leverage ratio calculation includes all on balance sheet exposures, all off balance sheet exposures after applying the applicable adjustments as per the CBB guidelines:

CBB require banks to hold a minimum leverage ratio of at least 3%.

SNO	Description	BD 000
1	Tier 1 Capital	114,321
	On Balance Sheet Assets
2	SF	470,498
3	URIA	2,051,282
4	Off Balance (with conversion CCFs)	380,978
5	Total Assets (2+3*(0.3)+4)	1,466,861
6	Leverage Ratio (1/5)	7.79%

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