MANAMA: Net profit of Bahraini banks rose from $1.322 billion in 2012 to $1.826 billion in 2013. Conventional retail posted profits of $940 million in 2013 followed by conventional wholesale and Islamic wholesale.
Islamic retail posted a loss of $65 million in 2013 but this year there will be a positive gain as a result of profits from both Ithmaar Bank and KHCB as opposed to the losses posted a year earlier. Extrapolating net profits of approximately $953 million for the first half of 2014 shows that the banking sector is on target to exceed 2013’s total for the year although it will be significantly short of the $2.212 billion recorded during the peak of the real estate boom in 2007. However, it does show a huge jump from the lows of 2009 when local banks posted losses of $1.460 billion for the year, according to BAB-BIBF Bahrain Banks Annual Review 2014, released on Wednesday.
The Bahrain Association of Banks (BAB) and BIBF launched of The Bahrain Banks Annual Review 2014, the most comprehensive survey of banks registered in Bahrain and part of long-term project the maintain a database on the performance and competitiveness of the banking sector in Bahrain.
The annual publication, the first study of its kind in the region, contains a detailed analysis of Bahrain’s domestic banking sector and how it compares with other countries in the Gulf Cooperation Council (GCC) and the wider global banking sector. It has been researched and compiled jointly by BAB and BIBF and based on data sourced from Bureau van Dijk, a leading global provider of company information and business intelligence solutions. The Bahrain Economic Development Board (EDB) is the lead sponsor.
“This publication demonstrates that Bahrain has the most transparent banking sector in the Middle East and one which values genuine empirical research. The fruits of The Bahrain Banks Annual Review 2014 will become apparent when banks and financial organisations use the raw data and the trends it identifies to maintain a competitive edge and develop products that demonstrate the innovation and creativity that drives the thriving financial services sector in Bahrain,” Robert Ainey, the Chief Executive of BAB said.
“The collaboration with BAB and Bureau van Dijk is a prime example of our commitment not only to advancing human capital but also to support the banking sector by providing research and advisory services. Research is a major component of thought leadership, one that we are keen to employ as the sector looks towards its next phase of development,” Solveig Nicklos, Director at BIBF, said.
The 80-page review, which will be available in both hard copy and online, follows on from the inaugural Bahrain Banks Annual Review 2012 which was launched in April 2013. It will be accompanied by a 384 page in-depth analysis of individual banks in Bahrain which is also based on data sourced from Bureau van Dijk.