Bahrain-listed companies' net profits rise 2.2%
Analysis by Kuwait-based Kamco Invest shows that this slight increase was primarily driven by strong performance in the banking, transportation, and capital goods sectors, which helped offset declines across the majority of the exchange's 14 industry segments.
The banking sector emerged as the clear leader, with its net profits surging 16.8pc to $289.4m in Q1-2025. This boost largely stemmed from Bahrain Islamic Bank, which reported a multi-fold increase in net profits to $26.5m. The bank's improved performance was attributed to higher net interest income, despite a dip in non-interest income and increased impairments.
Arab Banking Corporation (Bank ABC) posted the highest net profits among Bahraini banks, reaching $76m, a slight rise from the previous year, aided by reduced impairments. National Bank of Bahrain also saw a 2.2pc gain in net profits, hitting $74.6m, propelled by an increase in non-interest income.
In contrast, the materials sector experienced a significant setback, with net profits plummeting 25.9pc to $48.1m. Alba, the sector's sole constituent, cited higher production costs as the main culprit, which eroded its EBITDA and ultimately its bottom line. This occurred despite a 20pc rise in LME aluminium prices and a 38pc increase in premiums.
The telecom sector also faced headwinds, with total net profits declining 3pc to $51.1m. Batelco (Beyon), the dominant player, reported a 3.8pc drop in net profits to $48m. The company attributed this decline to the implementation of Domestic Minimum Top-Taxes (DMTT), which took effect on January 1, 2025, as well as costs associated with acquisitions completed in 2024.
Meanwhile, aggregate net profits for companies listed on GCC exchanges rose 2pc year-on-year in the first quarter of 2025, reaching $58.6 billion, primarily driven by strong performances in the banking, telecom, and real estate sectors.
This modest improvement came despite a 5.7pc decline in profits from the energy sector, largely due to a 7.5pc year-on-year drop in net profits from Saudi Aramco. Excluding Aramco's results, total GCC corporate profits would have increased by 10.7pc in Q1 2025.
The GCC banking sector was a significant positive contributor, with aggregate earnings surging 10pc year-on-year to $16bn. Banks in Abu Dhabi, Saudi Arabia, and Bahrain all reported double-digit profit growth.
While the energy sector as a whole saw a decline, 17 out of 27 listed energy companies reported improved net profits.
The GCC telecom sector experienced a robust 45.3pc year-on-year growth in net profits, reaching $3.5bn, with broad-based double-digit gains across most GCC countries.
The GCC real estate sector also posted a strong performance, with net profits increasing by 55.5pc year-on-year to $2.9bn. This growth was led by substantial gains in the UAE, where real estate company profits rose 38pc to $2.1bn, and in Saudi Arabia, which saw a multi-fold increase to $472.7m.
Copyright 2022 Al Hilal Publishing and Marketing Group Provided by SyndiGate Media Inc. (Syndigate.info).
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