Bahrains banking system grows 4.6% in 2019

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MANAMA: Bahrain’s banking system’s (retail and wholesale banks) total aggregate balance sheet increased to $204.9 billion by the end of 2019, compared with $192.6bn at the end of 2018, an increase of 4.6 per cent, shows the Central Bank of Bahrain’s annual report for 2019.

The report released on the regulator’s website this month reveals that wholesale banks represented 54.1pc of total assets, whilst retail banks accounted for 45.9pc last year.

Domestic banking assets amounted to $68.5bn at the end of 2019 compared with $62.4bn at the end of 2018, representing an increase of $6.1bn or 8.9pc.

Foreign assets amounted to $136.4bn, compared with $130.2bn at the end of 2018, an increase of 4.8pc.

Domestic liabilities increased to $62.3bn at the end of 2019 compared with $57.9bn at the end of 2018, an increase of $4.4bn or 6.7pc.

Total foreign liabilities increased by $7.9bn (5.9pc) to $142.6bn against $134.7bn at the end of 2018.

The aggregate balance sheet of retail banks increased 8.6pc to BD35.4bn at the end of 2019, compared with BD32.6bn at the end of 2018.

Total domestic assets grew by BD1bn (5.3pc) to BD20bn, with claims on private non-banks sector increasing by BD0.6bn (4.62pc) and claims on general government securities growing by BD0.5bn (9.6pc).

Foreign assets recorded an increase of BD1.8bn (13.2pc), reaching a total of BD15.4bn at the end of 2019 compared with BD13.6bn at the end of 2018.

Total domestic liabilities of retail banks increased by BD1.2bn (6.7pc) to BD19bn at the end of 2019 from BD17.8bn at the end of 2018.

Total foreign liabilities increased to BD16.4bn at the end of 2019. Liabilities to foreign non-banks decreased by BD0.9bn and liabilities to foreign banks increased by BD2.6bn.

Outstanding loans and credit facilities of retail banks stood at BD9.7bn at the end of 2019, a 2.1pc increase compared with the BD9.5bn at the end of 2018.

The business sector accounted for 52.8pc of total loans and credit facilities, while individuals and the government sector represented 44.1pc and 3.1pc respectively.

Retail banks’ total domestic deposits increased to BD13.1bn at the end of 2019 compared with BD12.1bn at the end of 2018, an increase of BD1bn.

This is due to the increase in private sector deposits by BD1.2bn at the end of 2019.

The aggregate balance sheet of wholesale banks grew by $4.8bn to $110.8bn at the end of 2019, compared with $106bn at the end of 2018.

Total domestic assets grew to $15.4bn in 2019, compared with $12.1bn at the end of 2018 due to increases in government, non-bank and bank assets by 43.6pc, 29.5pc, and 10.9pc respectively.

Foreign assets increased by $1.4bn to $95.4bn at the end of 2019.

Total domestic liabilities of wholesale banks increased by $1.3bn to $11.8bn at the end of 2019 compared with $10.5bn at the end of 2018.

Foreign liabilities increased to $99bn at the end of 2019.

avinash@gdn.com.bh

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