Bahrain Bourse Listed Firms’ Net Profit Soars 17% to $2.3 Billion in 2025
Bahrain’s financial landscape showed significant resilience in 2025, as total net profits for companies listed on the Bahrain Bourse (BHB) surged by 17% year-on-year, reaching $2.3 billion. This growth underscores the strength of the domestic economy, driven primarily by advancements in the banking and materials sectors.
Sector Performance and Revenue Growth
According to analysis from Kamco Invest, total revenues for listed entities climbed by 4.8% to $17.8 billion, compared to $17 billion in the previous year. The materials sector led this performance, with net profits increasing by 18.5% to $580 million. The sector’s sole constituent, Alba, reported a remarkable 56.4% growth in net earnings, attributed to a surge in global aluminium prices, which reached multi-year highs. This rally was supported by international smelter closures and elevated copper markets, despite a modest global output increase of only 2% due to structural capacity limits in China.
Alba also achieved the highest individual revenue on the bourse, totaling $4.7 billion.
Banking Sector Resilience
The banking sector demonstrated robust performance, with aggregate net earnings rising by 15.6% to $1.2 billion, accounting for nearly half of the total revenue generated on the exchange. The Arab Banking Corporation (Bank ABC) recorded the largest revenue in this sector at $3.6 billion, followed by Albaraka Banking Group with $1.7 billion.
Individual banking performances remained strong. The National Bank of Bahrain (NBB) reported a 3.9% increase in net profits to $225.7 million. Al Baraka Banking Group achieved the largest absolute growth among its peers, with net earnings of $208.3 million, up from $140.8 million in 2024. Al Salam Bank also saw a notable 30.2% surge in net earnings to $203.8 million, while Al Baraka Group posted a total net income of $357 million.
Diversified Financial Sector Growth
The diversified financial sector also exhibited positive momentum, with net profits rising 14.8% to $172.9 million. GFH Financial Group emerged as the primary driver in this segment, reporting an 18.2% increase in earnings to $140.1 million. This growth was bolstered by the group’s wealth and investment management services, alongside strong proprietary income. Esterad also reported a 10% rise in profits to $17.9 million.
Conversely, the telecommunications sector experienced a slight contraction, with aggregate profits declining by 1.8% to $205 million. Batelco reported a marginal dip in earnings to $189.2 million, while Zain Bahrain bucked the trend with a 1.1% increase in net profits, reaching $15.9 million.
Exceptional Fourth Quarter Performance
The year concluded on a high note, with total Q4-2025 net profits for listed companies soaring by 48.2% to $670.4 million. This late-year momentum was again led by the materials sector, which saw a staggering 193% year-on-year profit increase during the fourth quarter alone.
However, when looking at the broader Gulf Cooperation Council (GCC) region, aggregate quarterly net profits for companies listed on GCC exchanges fell to their lowest level in three years during Q4-2025. This decline was largely driven by a sharp downturn in Saudi Arabia and the materials sector.
Regional Market Dynamics
Combined profits for the region dropped 24.7% sequentially, or $16.2 billion, to reach $49.4 billion. On a year-on-year basis, aggregate earnings declined by 13.2%, as strong growth in the United Arab Emirates and Bahrain failed to offset steep losses in the Saudi and Kuwaiti markets.
Saudi-listed companies, the region’s largest market, posted a 34.6% year-on-year profit decline to $22.8 billion, a drop of $12.1 billion. Boursa Kuwait also experienced a contraction, with earnings falling 25.1% to $1.5 billion.
In contrast, the UAE markets displayed resilience. Abu Dhabi-listed firms led the region with a 36% year-on-year profit growth, while Dubai-listed companies recorded an 18.2% increase during the same period.
Challenges in the Materials and Energy Sectors
The materials sector was the primary regional laggard, reporting aggregate losses of $4.8 billion in Q4-2025, compared to a profit of $478.2 million a year earlier and a $1.9 billion gain in the third quarter. The energy sector also faced challenges, with profits falling 17.3% year-on-year to $21.3 billion. The telecommunications and food and beverage sectors reported declines, largely due to high-base effects from one-off gains recorded in late 2024.
Despite these challenges, the overall regional decline was partially mitigated by the utilities and banking sectors. The utilities sector swung to a $0.7 billion profit from a $1.3 billion loss in Q4-2024, driven by a significant reduction in net losses at Saudi Electricity. The state-backed utility reported a loss of $238.4 million, down from a $2 billion loss in the previous year.
GCC banks remained a pillar of growth, with collective profits rising 9.6% year-on-year to $15.9 billion. The real estate sector also performed strongly, with profits jumping by roughly a third to reach $4.7 billion.
Source: www.zawya.com
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Published on 2026-04-15 12:05:00 • By the Editorial Desk
