Revealed: Top 10 banks in Bahrain

Things have been on the up for the GCC’s banks, which collectively recorded a better year in 2017 despite slowing economic growth in the region as a whole.

Banking activity was supported by a higher oil price and continued infrastructure investment as Gulf states diversify their economies in various ways. Commercial activity in the region expanded in 2017 and consumer confidence grew, albeit slightly. As a result, our list of the region’s 50 leading banks – ranking institutions in Bahrain, Kuwait, Oman, Saudi Arabia and the UAE – recorded higher net profit in 2017.

The second half of 2017 was more challenging, but economic growth in the region is expected to improve slightly in 2018. This, along with diversification efforts, should provide a boost to the banking sector this year, meaning the forecast is for a marginal increase in returns.

Of the country’s covered in the report, Bahrain’s banking sector saw the smallest growth in net profit last year at 1.1 per cent. This came after profit declined at a number of the top 10 lenders.

TOP 10 BANKS IN Bahrain
(Based on total assets of listed banks at the end of 2017)

1. Ahli United Bank

Assets in 2017 ($000): 31,322,484
Assets in 2016 ($000): 33,965,317
Growth (2016-2017): -7.78
2017 net profit ($000): 624,310
Return on assets (ROA) in 2017: 1.99

2. Arab Banking Corporation

Assets in 2017 ($000): 30,141,000
Assets in 2016 ($000): 28,195,000
Growth (2016-2017): 6.90
2017 net profit ($000): 234,000
Return on assets (ROA) in 2017: 0.78

3. Albaraka Bank Group

Assets in 2017 ($000): 23,425,265
Assets in 2016 ($000): 24,618,201
Growth (2016-2017): -4.85
2017 net profit ($000): 267,636
Return on assets (ROA) in 2017: 1.14

4. Gulf International Bank

Assets in 2017 ($000): 22,905,800
Assets in 2016 ($000): 24,192,400
Growth (2016-2017): -5.32
2017 net profit ($000): 37,300
Return on assets (ROA) in 2017: 0.16

5. Bank of Bahrain Kuwait

Assets in 2017 ($000): 9,847,321
Assets in 2016 ($000): 9,698,074
Growth (2016-2017): 1.54
2017 net profit ($000): 150,924
Return on assets (ROA) in 2017: 1.53

6. Ithmaar Bank

Assets in 2017 ($000):8,341,310
Assets in 2016 ($000): 8,138,641
Growth (2016-2017): 2.49
2017 net profit ($000): 13,798
Return on assets (ROA) in 2017: 0.17

7. National Bank of Bahrain

Assets in 2017 ($000): 7,917,830
Assets in 2016 ($000): 7,977,940
Growth (2016-2017): -0.75
2017 net profit ($000): 154,880
Return on assets (ROA) in 2017: 1.96

8. Al-Salam Bank

Assets in 2017 ($000): 4,471,567
Assets in 2016 ($000): 4,406,008
Growth (2016-2017): 1.49
2017 net profit ($000): 42,809
Return on assets (ROA) in 2017: 0.96

9. United Gulf bank

Assets in 2017 ($000): 3,005,737
Assets in 2016 ($000): 2,716,516
Growth (2016-2017): 10.65
2017 net profit ($000): 6,259
Return on assets (ROA) in 2017: 0.21

10. Investcorp

Assets in 2017 ($000): 2,497,153
Assets in 2016 ($000): 2,161,418
Growth (2016-2017): 15.53
2017 net profit ($000): 90,053
Return on assets (ROA) in 2017: 3.61

Looking ahead

In 2018, GCC banks are expected to record only modest growth in both assets and net profit, reflecting continuing challenging trading conditions. Economic growth in the region will be slightly higher, allowing for modest loan growth.

Maintained government infrastructure investment in the GCC and increased government spending in some GCC states will help to boost loan growth, albeit only modestly, and returns for the GCC banking sector are expected to be marginally higher over the course of the year.