BAHRAIN Development Bank (BDB), the kingdom’s leading bank supporting small and medium-sized enterprises (SMEs), has announced its financial results for the second quarter and first half of 2026.
The performance reflects BDB’s ongoing implementation of its strategic priorities and the strength of its business operations amid prevailing regional conditions.
This was underpinned by effective portfolio management, greater operational efficiency and a diverse range of financial products and services designed around the needs of SMEs, reinforcing the bank’s contribution to Bahrain’s economy and sustainable development.
For the second quarter of 2026, net profit attributable to the owners of the bank amounted to BD488,000 compared with BD602,000 during the corresponding period of 2025, representing a decrease of 19pc.
The movement primarily reflected lower recovery income, as well as a decline in net interest income and income from Islamic financing. These factors were partly offset by higher fee income and reduced operating expenses.
Total comprehensive income attributable to the owners of the bank reached BD2.1 million during the quarter, compared with BD144,000 in the same period last year, marking an increase of 1,363pc. This was mainly driven by an improvement in the fair value of debt securities compared with Q2 2025.
Net profit attributable to the owners of the bank stood at BD793,000 for the six months ended June 30, 2026, decreasing 18pc from BD965,000 recorded during the first half of 2025. This was primarily due to lower recovery income and a reduction in net interest income and profits from Islamic financing, partly mitigated by higher fee income, lower operating costs and a decrease in expected credit losses.
The bank recorded a total comprehensive loss attributable to its owners of BD2.6m for the first half of 2026, compared with total comprehensive income of BD1.3m during the corresponding period of 2025. This movement was mainly attributable to a decline in the fair value of debt securities.
Equity attributable to the owners of the bank amounted to BD64.8m as of June 30, 2026, compared with BD67.3m as of end-2025, representing a decrease of 4pc. Total assets stood at BD204.6m, compared with BD208.1m as of end-2025, reflecting a reduction of less than 2pc.
Commenting, BDB chairman Ghassan Ghaleb Abdulaal said: “These results demonstrate the resilience of BDB’s business model and its ability to advance its strategy despite the challenging regional environment. Prudent portfolio management and a sustained focus on efficiency remain central to preserving our long-term capacity to support SMEs, which are a vital driver of the kingdom’s economic growth.
“We will continue to develop more innovative financing solutions, deepen partnerships across the entrepreneurial ecosystem and help businesses build the scale and competitiveness needed to contribute to the kingdom’s economic priorities. Through this approach, BDB will further strengthen its position as a trusted partner to the SME community and an important catalyst for national development.”
BDB Group chief executive officer Dalal Al Qais added: “Our priorities during the first half of the year centred on further boosting operational efficiency, managing risk effectively and evolving our propositions in response to the changing requirements of SMEs. We remain committed to building on this momentum by investing in innovation, accelerating digital transformation and improving every stage of the customer experience.
Ms Al Qais
“Expanding our portfolio of specialised financing and non-financial services will enable us to deliver greater value to emerging entrepreneurs and established enterprises alike, while enhancing BDB’s contribution to sustainable economic development across the kingdom.”
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