BBK has announced its financial results for the half year ended June 30, 2026, including the second quarter of 2026.
The group achieved a net profit attributable to the owners of the bank of BD16.4 million for the second quarter of 2026 compared to BD17.5m in the same period last year, a decrease of 6.3 per cent. The basic and diluted earnings per share amounted to 9 fils compared to 10 fils achieved during the corresponding period last year.
The total comprehensive income attributable to the owners of the bank increased by 113.1pc from BD16.8m achieved during the second quarter of last year to BD35.8m during the current period, mainly due to the increase in market values of investment securities.
The movement in net profit was mainly driven by the impact of results from associates and joint ventures, higher provision requirements reflecting the bank’s proactive and prudent risk management approach, and increased operating expenses arising from ongoing strategic initiatives and investments in human capital. This was partially offset by continued growth across key income streams, including net interest income, fees and commission income, and investment and other income.
The group achieved a net profit attributable to the owners of the bank of BD42.5m for the first half of 2026 compared to BD38.6m in the same period last year, an increase of 10.1pc. The basic and diluted earnings per share amounted to 24 fils compared to 21 fils during the same period last year.
Total comprehensive income attributable to the owners of the bank for the first half of 2026 amounted to BD16.8m compared to BD32.3m during the corresponding period last year, reflecting a decline of 48pc, mainly due to the drop in valuation of investment securities as a result of market volatility.
The increase in net profit stems mainly from the growth in net interest income of 7.8pc from BD58.7m to BD63.3m due to active balance sheet management.
In addition, net fees and commission income registered a solid growth of 12.1pc increasing from BD9.9m to BD11.1m, whilst investment and other income increased by 66.1pc from BD11.2m to BD18.6m, reflecting the bank’s dynamic business model and its efforts to diversify income from non-interest income streams.
Net provisions increased by 31.6pc from BD5.7m to BD7.5m reported in the first half of 2026 reflecting the bank’s proactive and prudent risk management approach.
Total operating expenses grew by 18.5pc from BD35.7m during the first half of 2025 to BD42.3m during the same period of this year, mainly due to continued investment in our human capital and various strategic and business initiatives.
The total shareholders’ equity attributable to the owners of the bank reported a drop of 5.1pc at BD623.7m as of end-June 2026, compared to
BD657.5m as of end-2025, mainly due to drop in investment securities valuation, and dividend declaration.
Total assets as of end-June 2026 reported a marginal drop of 0.9pc to BD4,931.8m (end-2025: BD4,974.3m).
Net loans and advances reported a growth of 0.2pc at BD2,363.5m (end-2025: BD2,358.5m) while investment securities portfolio grew by 6.6pc to BD1,269.5m (end-2025: BD1,190.9m) and treasury bills increased by 14pc to reach BD346.9m (end-2025: BD304.4m).
Deposits and amounts due from banks and other financial institutions increased by 37.8pc to stand at BD400.4m (end-2025: BD290.6m).
On the other hand, cash and balances with central banks was lower by 46.8pc, to stand at BD312.2m (end-2025: BD586.6m). Customer deposits registered a marginal increase of 0.8pc to stand at BD2,877.6m (end-2025: BD2,853.5m).
Based on the solid interim results achieved and reflecting the board of directors prudent approach to sustain long-term shareholders’ value, the board of directors has decided to distribute an interim cash dividend of 7.5pc (7.5 fils per share), subject to regulatory approvals.
This follows a careful assessment of the prevailing geopolitical tension and market environment, while also taking in consideration the bank’s strategic growth priorities.
The board of directors commented on the bank’s results, stating: “BBK’s results demonstrate its ability to generate sustainable earnings and adapt effectively to evolving market conditions. The growth in income from both core and non-core revenue streams highlights the strength of our diversified business model and the successful execution of our strategic initiatives. We remain focused on enhancing customer experience, accelerating digital transformation and pursuing opportunities that support long-term growth and value creation. We thank our shareholders, customers and employees for their continued support and contribution to the bank’s achievements.”
BBK’s group chief executive officer Yaser Alsharifi added: “We are proud to share BBK’s financial performance for the period, marked by growth in key income streams. Beyond financial milestones, our commitment to societal impact stands out through our launch of the Youth Advisory Council, a new initiative aimed at bringing youth perspectives more directly into the bank’s strategic thinking and future planning. To further support this initiative, BBK hosted an introductory session for employees on the National Development Programme ‘Lamea’, as part of its efforts to promote participation in national initiatives that support leadership development and the growth of promising Bahraini talent.
“In alignment with the bank’s support for housing projects and the real estate sector as a key driver of the national economy, BBK has signed the Government Land Development Programme Agreement with Eskan Bank. The agreement builds on national housing initiatives and strengthens strategic alliances dedicated to providing sustainable financing frameworks that facilitate citizens’ access to quality housing.
“With a solid financial foundation and a clear strategic direction, we remain committed to strengthening our market position, enhancing stakeholder value, and achieving sustainable growth through disciplined execution and innovation.
“We are pleased to report a strong set of financial results for the first half of 2026, highlighted by a 10.3pc increase in net profit, 16.6pc growth in operating income and 7.8pc growth in net interest income, supported by improved ROE, stronger asset quality through lower NPLs and solid liquidity, demonstrating the resilience of our business model and the strength of our balance sheet.
“This performance enables us to continue delivering value to shareholders, meet evolving market expectations and remain well positioned to navigate future challenges. Under the current geopolitical tensions the decision to pay an interim dividend of 7.5 fils demonstrates our commitment to deliver shareholder value balanced with maintaining a robust and resilient business that can navigate periods of uncertainty.”
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