Bahrain-listed firms’ net profits decrease

Bahrain-listed firms’ net profits decrease

Listed companies in Bahrain saw their quarterly profits take a hit as part of a wider GCC trend that saw earnings dragged down by the energy and materials sectors.

Analysis by Kuwait-based Kamco Invest shows that total Q3-2022 net profits of Bahrain Bourse companies decreased by 44 per cent year-on-year (YoY) to $405.5 million after six of its 13 sectors led by the two largest sectors by market cap posted a decrease in earnings during the quarter.

The banking sector reported the biggest Q3-2022 aggregate profits among the sectors in the exchange.

In the sector, Q3-2022 net profit of Al Ahli United Bank decreased by 99.1pc YoY to $1.3m against $152.1m in Q3-2021 dragging down the aggregate profits of the banking sector.

The fall in the bank’s quarterly earnings was mainly due to higher provisions.

Arab Banking Corporation (Bank ABC) posted the largest Q3-2022 net profit among banks at $44m as against $25m in Q3-2021.

Bank ABC’s strong quarterly performance was driven by higher net interest income underpinned by the rise interest rates and a fall in impairment charges.

Meanwhile, Q3-2022 net profit for NBB fell 25.6pc YoY to $30.2m as compared with $40.6m in Q3-2021.

The decrease was attributed to higher provisions in Q3-2022 following the termination