TOTAL net profits for companies listed on the Bahrain Bourse (BHB) witnessed a robust 17 per cent year-on-year increase, reaching $2.3 billion for the 2025 financial year.
Analysis by Kuwait-based Kamco Invest shows that the growth was primarily spearheaded by the banking and materials sectors, reflecting a resilient domestic economy. Total revenues for the listed entities also climbed by 4.8pc during the period to hit $17.8bn, compared to $17bn in the previous year.
Leading the market performance, the materials sector saw its total net profits jump by 18.5pc to reach $580 million. The sector’s sole constituent, Alba, reported a significant 56.4pc growth in net earnings.
This surge was attributed to a rally in global aluminium prices which reached multi-year highs, supported by smelter closures internationally and elevated copper markets. This performance came despite global output increasing by only 2pc due to structural capacity limits in China and a slow recovery in other global regions. Alba also registered the highest individual revenue on the bourse at $4.7bn.
In the banking sector, aggregate net earnings for 2025 rose by 15.6pc to reach $1.2bn. The sector accounted for nearly half of the total revenue generated on the exchange. Arab Banking Corporation (Bank ABC) recorded the largest revenue in the sector at $3.6bn, followed by Albaraka Banking Group with $1.7bn.
Individual banking performances remained strong, with the National Bank of Bahrain (NBB) reporting a 3.9pc increase in net profits to $225.7m. Al Baraka Banking Group registered the largest absolute growth among its peers, with net earnings of $208.3m against $140.8m in 2024.
Meanwhile, Al Salam Bank followed with a 30.2pc surge in net earnings to $203.8m, and Al Baraka Group demonstrated its ability to navigate a complex environment by posting a total net income of $357m.
The diversified financial sector also showed positive momentum, with net profits rising 14.8pc to $172.9m. GFH Financial Group was the primary driver in this segment, reporting an 18.2pc increase in earnings to $140.1m. The group’s results were bolstered by its wealth and investment management services alongside strong proprietary income. Additionally, Esterad reported a 10pc rise in profits to $17.9m.
The telecom sector saw a slight contraction, with aggregate profits declining by 1.8pc to $205m. While Batelco reported a marginal dip in earnings to $189.2m, Zain Bahrain bucked the sector trend by posting a 1.1pc increase in net profits, reaching $15.9m.
The year concluded with an exceptional final quarter, as total Q4-2025 net profits for listed companies soared by 48.2pc to $670.4m. This late-year momentum was again led by the materials sector, which saw a staggering 193pc year-on-year profit increase during the fourth quarter alone.
Zooming out, aggregate quarterly net profits for companies listed on GCC exchanges fell to their lowest level in three years during the fourth quarter of 2025, pressured by a sharp downturn in Saudi Arabia and the materials sector.
Combined profits for the region dropped 24.7pc sequentially, or $16.2bn, to reach $49.4bn. On a year-on-year basis, aggregate earnings declined 13.2pc, 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 34.6pc year-on-year profit decline to $22.8bn, a drop of $12.1bn. Boursa Kuwait also saw a contraction, with earnings falling 25.1pc to $1.5bn.
Conversely, the UAE markets showed resilience. Abu Dhabi-listed firms led the region with 36pc year-on-year profit growth, while Dubai-listed companies saw an 18.2pc increase in the same period.
The materials sector was the primary regional laggard, reporting aggregate losses of $4.8bn in Q4-2025, compared to a profit of $478.2m a year earlier and a $1.9bn gain in the third quarter.
The energy sector also faced headwinds, with profits falling 17.3pc year-on-year to $21.3bn. Meanwhile, the telecommunications and food and beverage sectors reported declines, largely due to high-base effects from one-off gains recorded in late 2024.
The overall regional decline was partially mitigated by the utilities and banking sectors. The utilities sector swung to a $0.7bn profit from a $1.3bn loss in Q4-2024, largely driven by a significant reduction in net losses at Saudi Electricity. The state-backed utility reported a loss of $238.4m, down from a $2bn loss in the year-ago period.
GCC banks remained a pillar of growth, with collective profits rising 9.6pc year-on-year to $15.9bn. The real estate sector also performed strongly, with profits jumping by roughly a third to reach $4.7bn.
avinash@gdnmedia.bh
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