Securities & Investment Company (SICO) has released a detailed report initiating coverage on Ithmaar Bank, a wholesale banking group offering 360 degree financial services , with an “overweight” rating and target price of $0.92/share (presenting a 33 percent upside to its current market price of $0.69/share). It highlighted the aggressive expansion plans of the bank through its diversified network of subsidiaries and associate companies in varied lucrative financial business segments. Ithmaar Bank plans to expand its banking operations through its subsidiaries namely Faysal Bank Limited (FBL), Pakistan and Shamil Bank, Bahrain. Ithmaar's stake in Bank of Bahrain & Kuwait (BBK) will help it to cater to the Indian & Kuwaiti markets and its new operation in Saudi through Ithraa Capital will give it access to the biggest and fastest growing market in the GCC region. The report also discussed Ithmaar's exposure in private equity (PE) funds, which are geographically diversified real estate funds focused on Middle East, Central and Eastern Europe (CEE), and Latin American regions. The bank has plans to launch new funds which can take the total fund under management to about $4.0 billion by next year from the current $1.7 billion.
