BBK reports modest profit growth in Q1 2025

MANAMA - Bank of Bahrain & Kuwait (B.S.C.), also known as BBK, has disclosed its financial results for the first quarter ending March 31, 2025. The bank reported a net profit of BD 21.1 million, a 3.9% increase from BD 20.3 million in the same period last year. Earnings per share also rose slightly from 11 fils to 12 fils.

Despite the profit growth, BBK experienced a significant decline in total comprehensive income, which dropped by 43.6% to BD 15.4 million, mainly due to unfavorable mark-to-market valuations on investment securities. The total operating income for the quarter increased by 2.0% to BD 41.0 million, bolstered by a 9.3% rise in net fees and commission income and a substantial 53.2% growth in investment and other income.

The bank’s financial health was also reflected in a 13.5% reduction in net provisions for the quarter and a turnaround in profits from associated companies and joint ventures, posting a BD 0.4 million profit compared to a BD 1.0 million loss in the previous year.

However, BBK faced a 10.9% decrease in net interest income, attributed to lower international interest rates. Operating expenses saw a 3.8% increase to BD 16.6 million due to continued investment in strategic initiatives and human capital.

Shareholders’ equity attributable to the owners of the bank as of the end of March 2025 stood at BD 593.1 million, a 4.5% decrease from BD 620.8 million at the end of December 2024, largely due to the declaration of cash dividends in the first quarter. Total (EPA:TTEF) assets grew by 7.0% to BD 4,485.4 million, driven by increases in investment securities, loan portfolios, cash, and balances with central banks.

The Board of Directors highlighted the completion of a successful three-year strategic cycle, positioning BBK for sustained growth and innovation. Group CE Mr. Yaser Alsharifi commented on the resilience and strategic focus of BBK in the face of challenging market conditions and outlined the bank’s new strategic cycle focusing on market expansion, digital transformation, customer-centricity, and innovation.

BBK also emphasized its commitment to corporate social responsibility, sponsoring events like the "Global Women Economic Forum and Exhibition" and partnering with the Ministry of Housing and Urban Planning for the Innovation Forum and Exhibition for Social Housing.

The information in this article is based on a press release statement from BBK and is intended to provide shareholders and the market with a clear understanding of the bank’s financial position as of the first quarter of 2025.

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