REG - Bank of Bahrain& Ku. - 3rd Quarter Results

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RNS Number : 5446F  Bank of Bahrain & Kuwait (B.S.C.)  30 October 2025

 

 

 

For Immediate release

 

 BBK discloses its financial results for the period ended 30(th) September
2025

BBK (trading code BBK) announces its financial results for the period ended
30(th) September 2025, including the third quarter of 2025.

For the third quarter of 2025:

The Bank achieved a net profit attributable to the owners of the Bank of BD
17.9 million compared to BD 16.5 million in the same period last year, a
growth of 8.5%. The basic and diluted earnings per share amounted to 10 fils
compared to 9 fils achieved during the corresponding period last year,
reflecting a growth of 8.7%.

The total comprehensive income attributable to the owners of the Bank grew to
BD 44.5 million during the current period compared to BD 20.7 million during
the third quarter of last year, representing an increase of 115.0%. The
increase is mainly due to the positive movement in the valuation of investment
securities and higher profits.

The increase in net profit was mainly attributable to the growth in net fees
and commission income by 6.1% from BD 4.9 million to BD 5.2 million, while net
provisions declined by 72.6%  at BD 2.0 million compared to BD 7.3 million
for the same period of last year. In addition, the Bank share from associates
and joint ventures recorded a profit of BD 0.3 million compared to a loss of
BD 0.1 million during the third quarter of 2024.. On the other hand,
investment and other income decreased by 25.4% from BD 5.9 million to BD 4.4
million, whilst net interest income recorded lower by 3.9% at BD 29.5 million
compared to BD 30.7 million. Total operating expenses increased by 9.7% from
BD 17.6 million to BD 19.3 million, mainly due to the implementation of
strategic initiatives and investments in human capital.

For the nine months ended 30(th) September 2025:

The Bank achieved a net profit attributable to the owners of the Bank of BD
56.5 million compared to BD 53.0 million in the same period last year,
recording a growth of 6.6%. The basic and diluted earnings per share increased
by 6.8% at 31 fils for the current period compared to 29 fils during the same
period of last year.

The total comprehensive income attributable to the owners of the Bank for the
nine months period ended 30(th) September 2025 grew by 32.9% at BD 76.7
million compared to BD 57.7 million during the corresponding period of last
year, mainly due to positive mark-to-market of investment securities and the
higher profit for the period.

The increase in net profit mainly stems from the growth in net fees and
commission income by 8.1% from BD 13.5 million to BD 14.6 million, and the
growth in investment and other income by 3.9% from BD 15.5 million to BD 16.1
million. Moreover, net provision reported lower by 54.4% at BD 7.7 million
compared to BD 16.9 million during the same period last year, as a result  of
active credit risk and distressed exposures account management, and higher
recoveries. The share of profit from associates and joint ventures recorded a
profit of BD 0.9 million during the nine-months period ended 30 September
2025, compared to a share of loss of BD 2.2 million during the same period
last year. Conversely, the Bank's net interest income was lower  by 6.8% at
BD 88.2 million from BD 94.6 million, as a result of  market interest rate
movement. Furthermore, total operating expenses increased by 7.4% from BD 51.2
million to BD 55.0 million, mainly due to strategic initiatives implementation
and investments in human capital.

The total shareholders' equity attributable to the owners of the Bank stood at
BD 631.9 million as of end of September 2025, recording  a growth of 1.8%
over BD 620.8 million as of year-end 2024. The increase was mainly driven by
the positive movement in mark-to-market of investment portfolio.

Total assets as of end of September 2025 stood at BD 4,596.9 million (31(st)
December 2024: BD 4,192.6 million), registering a growth of 9.6%. Deposits and
amounts due from banks and other financial institutions increased by 57.1% to
stand at BD 263.7 million (31(st) December 2024: BD 167.9 million); Net loans
and advances increased by 12.4% to BD 2,017.2 million (31(st) December 2024:
BD 1,794.1 million); while  investment securities portfolio recorded a growth
of 25.3% to BD 1,176.6 million (31(st) December 2024: BD 939.4 million). On
the other hand, Cash and balances with central banks was lower by 12.6%, to
stand at BD 601.1 million (31(st) December 2024: BD 687.7 million). Treasury
bills declined by 15.9% to reach BD 335.9 million (31(st) December 2024: BD
399.2 million). However, Customer deposits recorded a growth of 5.1% to stand
at BD 2,534.1 million (31(st) December 2024: BD 2,411.3 million), as a result
of enhanced customer engagement strategic initiatives and the Bank's continued
focus on expanding its banking footprint. Term borrowings increased by 32.3%
to stand at BD 405.4 million (31(st) December 2024: BD 306.5 million), as the
bank was able in  successfully closing of  US$500 million, 3-year Club Loan
Facility, to support the Bank's strategic  business expansion plans, and to
refinance the  matured facilities.

The Board of Directors commented on the Bank's results, stating, "BBK's
continued growth trajectory as a testament to the successful execution of our
strategic priorities and dynamic business model. The increase in net profit,
growth in customer deposits and expansion of the loan portfolio are clear
indicators of the bank's ability to navigate evolving market conditions. We
remain committed to deliver long term values to our stakeholders, through
business expansion, continued investment in digital transformation, customer
experience and strategic investments, which shall pave the way for growth and
diversification. We extend our gratitude to our shareholders for their
unwavering support, to our loyal customers for their trust, and to our
dedicated management team and employees who makes this journey a remarkable
success."

BBK's Group Chief Executive, Mr. Yaser Alsharifi, added, "We are proud to
share BBK's financial performance for the period, marked by growth in net
profit and across key segments. Beyond financial milestones, our commitment to
societal impact stands out through strategic collaborations, such as
supporting Youth City 2023, which commits in building national capacity and
promoting a culture of leadership and innovation among youth. Meanwhile, other
initiatives such as 'Grow' for Bahraini graduates showcase our commitment to
community development and talent cultivation."

"The Central Bank of Bahrain (CBB) has approved the transfer of HSBC Bank
Middle East, Bahrain Branch's retail (consumer) banking operation to BBK and
we have identified the transfer completion to take place by the fourth quarter
of 2025. We are thrilled to welcome HSBC Bahrain's retail customers and
employees to the BBK family and commit to a seamless integration".

"While we remain mindful of the evolving economic landscape, we are optimistic
about the opportunities ahead. We are confident in our strategy and our
ability to continue creating long-term value for our stakeholders".

The full set financial statements and the press release are available on
Bahrain Bourse's website.

 

 

 

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