Banks in Bahrain – Overview

Over the years, Bahrain has become one of the most attractive places for bankers and investors in Gulf. As per the Central Bank of Bahrain, there are 403 institutions in Bahrain.

Bahrain has 103 commercial and investment banks. Out of them, 79 banks are conventional and 24 are Islamic.

As per the report of KPMG, the total assets of banks have reduced from US $93.1 in 2015 to US $90.1 that represents a 3.2% decline.

source: kpmg.com

Structure of banks in Bahrain

The banking structure of Bahrain is almost similar for last few years. Let’s have a look at total fact sheet as per the Central Bank of Bahrain –

• Retail banks: There are 29 retail banks in Bahrain as of June, 2017.
• Locally incorporated: The numbers of locally formed banks are 13.
• Wholesale banks: There are 73 wholesale banks in Bahrain.
• Foreign banks: If we talk about foreign banks, there are 15 branches of foreign banks in Bahrain.
• Representative offices: There are 8 such offices.
• Bank Society: The number of bank society in Bahrain is just 1.
• Islamic banks: Total 24 Islamic banks operate in Bahrain.

Top 10 banks in Bahrain

We will talk about top 10 banks in Bahrain as per the total assets owned. Let’s get started.

#1. Ahli United Bank

This bank is one of the most noteworthy banks in Bahrain. It was established on 31^st May, 2000 after the merger of The United Bank of Kuwait (UBK) and Al-Ahli Commercial Bank B.S.C. It owns US $31.32 billion worth of total assets. Ahli United Bank has been very progressing since its inception. Its net profit in the second quarter of 2017 has been 3.6% more than the net profit of the second quarter of 2016. In the second quarter of 2017, the net profit of Ahli United Bank is US $311.3 million.

#2. Arab Banking Corporation

This bank is much older than its other counter-parts. It was established in the year 1980. The total assets owned by this bank are whopping US $29.223 billion as per the last data on 30^th June, 2017. This is one of the largest banks in Bahrain, offering myriad services like trade finance, project finance, structured finance, and also corporate & institutional banking. It has clients all over the five continents – Middle East, North Africa, Europe, the US, and Asia.

#3. Ali Bakra Bank Group

This is one of the largest banks in Bahrain. The total assets owned by Ali Bakra Bank Group till the first half of 2017 was around US $25 billion. In 2016 alone, this bank has raised over US $1.85 billion worth of assets. Al Bakra Bank also doubled its net income in 2016. And in the first half of 2017, it had US $70 million of net income attributable to equity shareholders. It has 700 branches in over 15 countries around the world.

#4. Gulf International Bank

Gulf International Bank was founded in the year 1975 in Bahrain and it started its operation in the year 1976. More than 1100 people work for GIB all over the globe and they are specialized in asset management, investment banking, treasury, wholesale banking etc. As per the website of the GIB, the total assets owned by GIB at the end of 2015 were US $24.3 billion. The consolidated net income after tax at the end of 2015 was also excellent – US $90.4 million.

#5. Investcorp

Investcorp is again one of the big names in the banking sector in Bahrain. It was founded in the year 1982. It has headquarters in Manama, Bahrain. This bank focuses on buyouts, hedge funds, real estate, and alternative investments. It has owned the total assets of US $21.3 billion. It has made over 170 corporate investments since its inception. It regularly maintains relationships over 1000 investors as of now.

#6. Bank of Bahrain and Kuwait

Over the last 35 years this bank has been serving its wide range of customers. This bank serves its customers through various products like loans, portfolio management, and even supporting small, medium, and large businesses in multi-million dollars projects. It was established in the year 1971 and the total assets owned by the bank as of 2013 were US $8.570 billion. 996 employees work in BBK. In 2013, the revenue of BBK was US $289.103 million and net income was US $119.629 million.

#7. Ithmaar Bank

It is one of the largest Islamic banks in Bahrain. It was founded on 21^st October, 2003. As per the website of Ithmaar Bank, at the end of 2015, the total assets owned by Ithmaar Bank were US $8.1 billion which were US $0.2 billion more than the figure of the previous year. In Feb, 2016, the net income was US $478.4 million which is 5.4% more than the previous year. The net income before provisions and taxes has also increased by 169.2%, i.e. US $77.9 million.

#8. National Bank of Bahrain

National Bank of Bahrain is one of most noteworthy banks in Bahrain. It was founded 60 years ago, in the year 1957. Since then it has been servicing its customers in banking, financial services, and investment services. The total assets owned by this bank were US $7.311 billion as reported in the year 2013. The net income in the same year was US $136.60 million. 593 employees work in National Bank of Bahrain. The headquarters of this bank are in Manama, Bahrain.

#9. Bahrain Development Bank

This bank is one of the most preferred banks in Bahrain. It was founded more than 25 years ago, on 11^th December of 1991. The focus of this bank is to serve the needs of small and medium sized enterprises. As of 2015, the total assets owned by Bahrain Development Bank were US $514 million. Net income of the bank was US $2.74 million as of the same year. 203 employees work this bank. It has headquarters in Manama, Bahrain.

#10. Arcapita

Arcapita was founded in the year 1997. It has been serving its customers over 19 years and has completed over 70+ transactions. It has offices in Bahrain, London, Singapore, and Atlanta. The total assets owned by Arcapita are significantly lower than its other big brothers. Total assets owned by Arcapita as on 30^th June, 2016 were US $144.5 million. The total revenue as on 30^th June, 2016 was US $12.5 million. It has proposed a dividend of US $7.3 million in the same year.

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