A survey prepared by Al-Ayyam Al-Iqtisadiya shows that the profitability of the commercial banks sector listed on the Bahrain Stock Exchange increased by 11% to reach 106.2 million dinars during the first quarter period ending on March 31, 2021, compared to 95.7 million dinars during the same period of 2020. The sector includes Commercial banks on the Bahrain Stock Exchange are 7 commercial banks, which are Ahli United Bank, National Bank of Bahrain, Bahrain and Kuwait Bank, Al Salam Bank, Bahrain Islamic Bank, Ithmaar Holding Company, and Khaleeji Commercial Bank.
Although the economies of the world and the region are affected by the economic repercussions of the Corona pandemic, the impact of which is still widespread, especially with the emergence of mutated strains of the virus, which would affect the return of confidence to the markets and the desired health and economic recovery path and its pace, Bahraini banks were able to achieve satisfactory operating profits And manage risk operations effectively, containing the economic impacts of the pandemic and its implications for the banking sector.
Al-Ahly United, a 6.9% decline in profitability
The profits of the listed banks, Ahli United Bank, which announced that it achieved net profits after excluding minority shares, topped the list of US $ 159.6 million (BD 60.3 million), compared to US $ 171.4 million (BD 64.7 million) for the same quarter of 2020, with a decline. 6.9%, mainly due to a decrease in the bank’s income from net interest in light of the low ceilings of basic interest rates for major international and regional currencies and in fee and commission income and other income; As a result of the slow pace of economic activities and commercial movement due to the Coronavirus pandemic.
The basic and diluted earnings per share were 1.6 US cents for the first quarter of the year, compared to a return of 1.7 US cents for the same period in 2020, while the comprehensive income attributable to the shareholders of the Group was US $ 174.8 million in the first quarter of 2021, compared to 37.0 million US dollars for the same quarter. From 2020).
Bahrain National comes second, with a growth of 1.3%.
The National Bank of Bahrain ranked second in terms of profitability after achieving net profits of 15.6 million Bahraini dinars for the three months ending March 31, 2021, an increase of 1.3% compared to 15.4 million Bahraini Dinars in 2020.
The increase in net profit in the first quarter is attributed to the decrease in provisions levels in 2021, as 2020 included reserve provisions requirements due to the spread of the “Covid-19” pandemic worldwide, and the earnings per share for the first quarter of 2021 did not change from the same period of 2020. , Amounting to 8 Bahraini fils (2 US cents).
Profitability of Bahrain and Kuwait declined by 16.4%.
BBK ranked third in terms of profitability, after the bank achieved a net profit attributable to the bank’s shareholders of 14.3 million Bahraini Dinars in the first quarter of the first quarter of 2021, a decrease of 16.4%, compared to 17.1 million Bahraini Dinars. The basic and diluted earnings per share amounted to 10 fils for the first quarter of 2021, compared to 12 fils during the same period last year 2020, and the reason for the decrease in net profit is mainly due to the decrease in net fee and commission income by 42.9% from 6.3 million Bahraini dinars achieved during the quarter. The first of the year 2020 to 3.6 million Bahraini dinars during the first quarter of the current year; This is due to the impact of the Central Bank of Bahrain regulations regarding fees and currency ceilings imposed on the retail sector, which came into effect in mid-2020.
Al Salam Bank came fourth, with a growth of 144%, and Al Salam Bank-Bahrain came fourth after achieving net profits attributable to shareholders amounting to 6.1 million Bahraini dinars for the first quarter of 2021, compared to 2.5 million BD for the same period in 2020, an increase of 144% The bank attributes this increase in net profits to the higher growth in the main activities of the bank.
The earnings per share reached 2.6 fils for the first quarter of 2021, compared to a return of 1.1 fils for the same quarter of 2020, an increase of 164%.
Al-Islami is fifth, with profitability growth of 38.2%.
Bahrain Islamic Bank ranked fifth after achieving 4.3 million dinars in profits for the first quarter of the current year 2021, with a growth of 38.2% compared to 3.1 million dinars during the same period of 2020.
Basic and diluted earnings per share increased to 4.1 fils per share for the first quarter ending on March 31, 2021, compared to 2.9 fils per share for the same period in 2020.
Ithmaar Holding VI
Ithmaar Holding Company ranked sixth after achieving a net profit of $ 8.86 million (BD 3.4 million) for the three-month period ending March 31, 2021, compared to a net loss for shareholders of $ 22.58 million (8.5 million dinars) for the same period of The year 2020, which is due to improved asset performance and lower required provisions compared to the previous period.
The earnings per share for the first quarter was about 30 US cents, compared to negative 0.78 US cents in the same period in 2020.
“Khaleeji Commercial” seventh, with a growth of 46.5%
The Khaleeji Commercial Bank ranked seventh and last, after achieving net profits attributable to shareholders of the company amounting to 2.106 million Bahraini dinars for the first quarter of 2021, compared to 1.437 million BD for the first quarter of 2020, an increase of 46.56%, and earnings per share For the period ending on March 31, 2021, about 2.62 fils compared to 1.79 fils for the first quarter of 2020.