Al Baraka Islamic Bank returns to Q2 profitability

24/08/2025 04:21 AST

Bahrain-based Al Baraka Islamic Bank has announced its financial results for the second quarter of 2025, recording a notable turnaround from losses to profitability.

The bank posted a net profit after tax of BD0.1 million in three-month period ended June 30 2025 compared to a net loss of BD1.5 million last year.

Net loss after tax attributable to shareholders been reduced to BD0.1 million, compared to a net loss of BD2 million in the same period last year, driven by improved operating income and cost efficiency in Bahrain while the overall cost been slightly grown due to expansion of our network by opening of 15 new branches in Pakistan, said the bank in a statement.

For the six months period ending 30 June 2025 (H1 2025), the Bank reported a net profit before tax of BD 1.6 million, compared to such net loss before tax of BD 0.8 million in H1 2024.

Net loss after tax attributable to shareholders was reduced to BD 1.0 million, compared to a loss of BD 4.2 million in the corresponding period of the previous year, supported by significant growth in net operating revenues and lower provisions due to improved asset quality.

According to Al Baraka, its financial position recorded solid growth, with total assets rising by 6% to BD1.028 billion, compared to BD0.970 billion as of December 31, 2024.

Customer deposits increased by 6.5% to BD903 million, from BD 848 million at the end of 2024. Total investments rose to BD392 million, compared to BD387 million in the previous year, while financing assets grew to BD451 million from BD446 million at the end of last year, reflecting higher demand for short to medium-term consumer products, said the statement.

These improvements in results for Q2 and H1 2025 were driven by increased revenues from the Bank's successful financing and investment activities, improved asset quality, enhanced cost management efficiency particularly in Bahrain, progress in digital transformation initiatives, customer base expansion, and the strengthening of Sharia-compliant product offerings, it added.

On the financial results, Chairperson Sabah Khalil Al Moayyed said: "These improvements in financial results achieved in Q2 and H1 2025 reflect the strength of our strategy, our ambitious vision, and our ability to deliver sustainable growth across all our business sectors. This strong performance reinforces the confidence of our valued customers and shareholders in our future outlook and reaffirms the Bank's leading position as one of the foremost Islamic banks in Bahrain and the region."

"In the coming period, we will continue implementing a comprehensive strategy focused on innovation and digital transformation while maintaining our unwavering commitment to Sharia principles in all our products and banking services," stated Al Moayyed.

"We also intend to continue supporting Bahrain's Economic Vision 2030 by backing strategic initiatives and projects and contributing to the development of the national economy, delivering attractive returns for shareholders and added value to the Bahraini community," she added.

A leading Islamic bank in the Kingdom of Bahrain, Al Baraka has since its establishment in 1984 delivered outstanding results in operations and services for both individual and corporate clients.

CEO Dr Adel Abdulla Salem said: "We are pleased with the strong financial results achieved during Q2 and H1 2025, which reflect the success of our strategies, our business model, and our ability to deliver sustained growth. These results show marked improvement across all performance indicators, based on well-considered strategic plans, more efficient operations, and a continued focus on innovation in delivering banking products and services."

Salem pointed out that during the three-month period, the bank had focused on strengthening its Islamic financing portfolio and developing innovative products to meet the diverse needs of customers, while maintaining the highest quality standards.

"We also continued investing in digital transformation and enhancing our online platforms to deliver an advanced and seamless banking experience. In parallel, we developed our teams' capabilities through specialized training programs to ensure sustained excellence in performance and service delivery," he added.

On the future outlook, Salem said: "These results and positive developments give us confidence to move forward with our ambitious objectives for the second half of the year."

"We will continue to strengthen our successful investments, seize promising opportunities in local and regional markets, invest in modern technologies, and expand our Islamic banking services to meet the aspirations of our customers in Bahrain and beyond, while delivering optimal returns to our shareholders and maintaining our full commitment to best practices in governance and risk management," he added.

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