Bahrain - Total net profits for companies listed on the Bahrain Bourse saw a 12.5 per cent year-on-year (y-o-y) decline in Fiscal Year 2024, reaching $2 billion, according to analysis by Kuwait-based Kamco Invest.

The primary driver of this decrease was a fall in profits within the banking sector, which recorded a total net profit of $1bn in FY2024, down from $1.3bn in the previous fiscal year.

In contrast, the materials sector experienced a significant surge in profitability, with total net profits jumping by 56.4pc y-o-y to $489.5 million during FY2024.

This growth was solely attributed to Alba, the sector’s only listed entity, which reported a 56.4pc y-o-y increase in net earnings. Alba’s strong performance was fuelled by higher aluminium spot premiums, which reached multi-year highs in the fourth quarter of 2024 due to tight supply and geopolitical factors.

Looking at the quarterly performance, total net profits for Bahrain-listed companies increased by a robust 43.2pc y-o-y in the fourth quarter of 2024, reaching $426.6m. This aggregate growth was largely supported by the banking and materials sectors.

Alba reported a net profit of $98.3m in Q4 2024, marking a substantial 58.4pc y-o-y increase. Similarly, the banking sector’s total net profits rose by 42.3pc y-o-y in Q4 2024 to $234.4m, compared to $164.7m in the same period of the previous year.

The telecom sector also saw a modest improvement in Q4 2024, with aggregate earnings increasing by 2.8pc to $48.9m.

The diversified financial sector witnessed a remarkable 295.4pc y-o-y jump in total net profits for FY2024, reaching $150m compared to $37.9m in FY2023.

This significant growth was driven by Bahrain Commercial Facilities, which returned to profitability with a net profit of $13.4m after a net loss of $81.7m in the previous year.

Additionally, GFH Financial Group reported FY2024 net earnings of $118.5m, up from $102.9m in FY2023, primarily due to strong performance in its investment banking, treasury and proprietary investment activities, and commercial banking businesses.

The telecom sector also recorded a marginal increase in total net profits for FY2024, rising by 1.1pc to $208.7m from $206.5m in FY2023.

Both listed telecom companies reported profit growth during the year, with Batelco (Beyon) achieving a net profit of $193m and Zain Bahrain posting a net profit of $15.7m.

Beyon’s earnings growth was attributed to its strategy of solidifying its position as a growing technology group through strategic acquisitions, including Insomea Computer Solutions and Link Development by its subsidiary, Beyon Solutions.

The insurance sector experienced a healthy 25.8pc y-o-y growth in total net profits for FY2024, reaching $78.8m compared to $62.6m in FY2023. Four out of the five companies in the sector reported y-o-y gains in their FY2024 net earnings.

Arab Insurance Group led the sector with net earnings of BD26.4m (approximately $70.1m) in FY2024, a significant increase from $14m in FY2023. This robust performance was mainly due to higher insurance service results and a net recovery of $6m of long outstanding dues. Solidarity Bahrain also reported a substantial 47.3pc y-o-y jump in FY2024 net profits, reaching $21.4m.

Conversely, Bahrain National Holding, despite recording the third-largest net profit in the sector at $13.7m, witnessed a 25.4pc y-o-y decline in profits during the period.

Zooming out, aggregate net profits for GCC-listed companies fell for the third straight quarter to a three-quarter low of $57.3bn in Q4 2024, a 5pc sequential drop, as declines across most exchanges offset gains in Dubai and Abu Dhabi.

However, Q4 aggregate profits edged up 2pc year-on-year, with healthy growth elsewhere partially countered by a fall for Abu Dhabi-listed firms.

Oman led country-level y-o-y profit growth (83.4pc), followed by Bahrain (43.2pc) and Kuwait (37.1pc). Saudi-listed companies saw a modest 3.1pc y-o-y rise, while Dubai and Qatar grew around 20pc.

The energy sector saw the largest y-o-y profit decline, down 16.6pc or $5.1bn to $25.7bn in Q4. Utilities reported a $1.3bn net loss versus a $338.9m profit a year earlier, and F&B profits fell 12pc or $0.6bn y-o-y to $4.2bn.

Conversely, telecoms saw the biggest absolute y-o-y profit jump, up 171pc or $3.4bn to $5.3bn. Banks also reported higher y-o-y profits, rising 16.2pc or $2bn to $14.4bn.

Full-year 2024 aggregate net profits for GCC-listed firms declined for the second year running to $241.1bn, a 1.4pc or $3.4bn decrease from $244.4bn in 2023.

Sector-wise, energy, utilities, and F&B profit declines outweighed gains in most other sectors, with energy hit by lower oil volumes and prices, and weaker refining margins.

The GCC banking sector saw the largest absolute profit increase in 2024, up $5.6bn or 10.3pc to a record $60.1bn, followed by Telecoms and Materials.

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