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Record profits and a strong dividend: BBK posts an 11.1% rise in net profit to BD 80.0m for 2025, alongside a proposed 40 fils per share payout.
This article covers information on Bank of Bahrain & Kuwait (B.S.C.).
LON:QE58BBK has posted a record net profit attributable to owners of BD 80.0 million for the year ended 31 December 2025, up 11.1% on 2024. Earnings per share came in at 44 fils (fils is a subunit of BD). On the back of this, the Board is recommending a total cash dividend of 40 fils per share for 2025, including the 12.5 fils interim already paid, subject to regulatory and AGM approvals.
The momentum strengthened into year-end: fourth quarter net profit was BD 23.5 million, up 23.7% year-on-year, with basic and diluted EPS of 13 fils versus 11 fils in Q4 last year. Total comprehensive income for Q4 surged 116.1% to BD 25.5 million, helped by higher unrealised gains on fair value reserves and the stronger profit.
Q4 was clearly strong, but the full-year mix tells the more interesting story. BBK grew non-interest income and sharply reduced credit costs, offsetting a softer performance in net interest income.
Total comprehensive income for 2025 was BD 102.2 million, up 47.1% year-on-year, driven by positive market valuation movements and higher earnings. In short: more diversified income, cleaner credit costs, and controlled expense growth helped deliver the record profit, even as interest income eased.
The balance sheet stepped up meaningfully. Total assets rose 18.6% to BD 4,974.3 million, while shareholders’ equity attributable to owners increased 5.9% to BD 657.5 million.
This is a classic growth posture: more loans, more investments, supportive deposit inflows, and an uptick in term funding to underpin expansion. It does, however, mean BBK will be keenly managing margins and asset quality as that loan book scales.
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The Board is recommending a total cash dividend of 40 fils per share for 2025, including the 12.5 fils interim already paid, subject to regulatory and AGM approvals. With EPS at 44 fils, that implies an approximate payout ratio of 91%. That is a generous signal following a record year, though it also means retained earnings growth will be more modest unless profits continue to rise.
BBK highlighted several strategic milestones beyond the numbers. The bank completed the transfer of HSBC Middle East – Bahrain branch retail customers, integrating both clients and the HSBC employees who serve them. That should bolster BBK’s retail franchise and capabilities.
On the digital and customer experience front, BBK was recognised as the “Most Trusted Digital Banking Services Provider in Bahrain” by World Business Outlook and achieved top Net Promoter Scores in Bahrain’s retail and corporate banking segments. It also picked up the “CX Award 2025”. These are useful leading indicators for customer acquisition and retention.
BBK also emphasised ESG progress, launching a “Sustainability Academy” to equip employees with skills for sustainable banking. While the RNS does not quantify ESG impacts, embedding sustainability training is a practical building block for future product and risk frameworks.
Positives first. This is a high-quality beat: profits up, comprehensive income up, fees sturdier, provisions well down, and associates returning to profit. Balance sheet growth looks purposeful, with deposits keeping pace and a clear plan to deploy into loans and securities. The proposed dividend is punchy.
On the other side of the ledger, net interest income fell 5.9% despite the larger balance sheet, which hints at margin pressure or mix effects. The 60.7% drop in provisions is a big tailwind that may not repeat every year. Rapid loan growth always puts the spotlight on asset quality, underwriting standards and capital buffers. Operating expenses are rising – sensibly explained by strategy and people investment – but will still need to translate into sustained revenue traction.
Overall, it is a strong print with a healthy mix of cyclical and structural drivers. Execution in 2026 will be about protecting margins, keeping credit costs benign, and ensuring the HSBC retail transfer and digital investments continue to pay off. Formal guidance was not disclosed in the RNS, but management and the Board struck a confident tone.
| Metric | 2025 | 2024 | Change |
|---|---|---|---|
| Net profit attributable to owners (FY) | BD 80.0 million | BD 72.0 million | +11.1% |
| EPS (FY) | 44 fils | 40 fils | n/a |
| Total comprehensive income (FY) | BD 102.2 million | BD 69.5 million | +47.1% |
| Net profit attributable to owners (Q4) | BD 23.5 million | BD 19.0 million | +23.7% |
| Total comprehensive income (Q4) | BD 25.5 million | BD 11.8 million | +116.1% |
| Net interest income | BD 117.2 million | BD 124.6 million | -5.9% |
| Fees and commission income | BD 22.1 million | BD 19.5 million | +13.3% |
| Investment and other income | BD 21.0 million | BD 19.8 million | +6.1% |
| Net provisions and impairments | BD 6.8 million | BD 17.3 million | -60.7% |
| Total operating expenses | BD 74.1 million | BD 71.3 million | +3.9% |
| Total assets | BD 4,974.3 million | BD 4,192.6 million | +18.6% |
| Shareholders’ equity (owners) | BD 657.5 million | BD 620.8 million | +5.9% |
| Customer deposits | BD 2,853.5 million | BD 2,411.3 million | +18.3% |
| Net loans and advances | BD 2,358.5 million | BD 1,794.1 million | +31.5% |
| Investment securities | BD 1,190.9 million | BD 939.4 million | +26.8% |
| Term borrowings | BD 405.3 million | BD 306.5 million | +32.2% |
| Treasury bills | BD 304.4 million | BD 399.2 million | -23.7% |
| Cash and balances with central banks | BD 586.6 million | BD 687.7 million | -14.7% |
In sum, BBK has delivered a record year with a confident payout and clear strategic momentum. The ingredients for continued progress are there – now it’s about disciplined execution in a changing rate and credit environment.
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