Banks in Bahrain

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Overview of Banks in Bahrain

Over the years, Bahrain has become one of the most attractive places for bankers and investors in the Gulf. As per the Central Bank of Bahrain, there are 403 institutions in Bahrain. It 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 $93.1 in 2015 to $90.1, representing a 3.2% decline.

Overview of Banks in Bahrain

source: kpmg.com

Structure

The banking structure of Bahrain has been almost similar for the last few years. Let us have a look at the total tear sheet as per the Central Bank of Bahrain: -

Retail banks: 31 retail banks as of the end of September 2020.
Locally incorporated: The numbers of locally formed banks are 114.
Wholesale banks: There are 62 wholesale banks.
Foreign banks: If we talk about foreign banks, there are 17 branches in Bahrain.
Representative offices: There are eight such offices.
Bank Society: The number of banks in society is just 1.
Islamic banks: A total of 24 Islamic banks operate in Bahrain.

List of Top Banks in Bahrain

Ahli United Bank
Arab Banking Corporation
Al Bakra Bank Group
Gulf International Bank
Investcorp.
Bank of Bahrain and Kuwait
Ithmaar Bank
National Bank of Bahrain
Bahrain Development Bank
Arcapita

Let us explain each one of them as per the total assets owned: -

#1. Ahli United Bank

It is one of the most noteworthy banks in Bahrain.
It was established on 31st May 2000 after the merger of The United Bank of Kuwait (UBK) and Al-Ahli Commercial Bank B.S.C.
It owned $40.1 billion worth of total assets in 2020. Ahli United Bank has been very progressing since its inception.
Its net profit in the second quarter of 2021 has been 13.9% more than that for the second quarter of 2020. In the second quarter of 2021, the net profit of Ahli United Bank was $122.9 million (up 18% from 2Q 2020).

#2. Arab Banking Corporation

This bank is much older than its other counterparts.
It was established in the year 1980. The total assets owned by this bank are a whopping $30.9 billion as per the last data at the end of 2021.
It is one of the largest banks, offering various services like trade finance, project finance, structured finance, and corporate & institutional banking.
It has clients all over the five continents – the Middle East, North Africa, Europe, the US, and Asia.

#3. Al Bakra Bank Group

The total assets owned by Al Baraka Bank Group till the end of June 2021 were $28.47 billion. In 2016 alone, it raised over $1.85 billion worth of assets.
Al Baraka Bank also doubled its net income in 2016. And in the first half of 2021, it had $53 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 1975 in Bahrain. It started its operation in 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 consolidated total assets owned by GIB at the quarter end of 2021 were $35.8 billion. As a result, the consolidated net income after tax at the end of 2021 was $40.9 million in the third quarter.

#5. Investcorp

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

#6. Bank of Bahrain and Kuwait

Over the last 35 years, this bank has served many customers. This bank serves its customers through various products like loans, portfolio management, and even supporting small, medium, and large businesses in multi-million-dollar projects. It was established in 1971, and the total assets owned by the bank as of 2019 were $10.252 billion. It has 1,392 employees. In 2019, the revenue of BBK was $419.894 million, and its net income was $200.000 million.

#7. Ithmaar Bank

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

#8. National Bank of Bahrain

The National Bank of Bahrain is one of the most noteworthy banks. It was founded 60 years ago, in 1957. Since then, it has been servicing its banking, financial, and investment services.

The total assets owned by this bank were $824.9 billion in 2017. The net income in 2017 was $162.25 million. It has 761 employees. The headquarters of this bank is located in Manama.

#9. Bahrain Development Bank

It was founded more than 25 years ago, on 11th December 1991. The focus is to serve the needs of small and medium-sized enterprises. As of 2015, the total assets owned by Bahrain Development Bank were $514 million. The net income was $2.74 million as of the same year, with 203 employees. It has headquarters in Manama.

#10. Arcapita

Arcapita was founded in 1997. It has been serving its customers for 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. The total assets held by Arcapita as of 30th June 2016 were $144.5 million, and the total revenue was $12.5 million. In addition, it has proposed a dividend of $7.3 million in the same year.