Manama: Bahrain Development Bank (BDB), the Kingdom's leading financial institution supporting small and medium-sized enterprises (SMEs), has announced its financial results for the second quarter and first half of 2026.
According to Bahrain News Agency, BDB's performance in these periods reflects its ongoing strategic focus and business resilience amidst challenging regional conditions. This was supported by effective portfolio management, increased operational efficiency, and a diverse range of financial products and services tailored to SMEs, reinforcing BDB's contribution to Bahrain's economy and sustainable development.
In the second quarter of 2026, BDB reported a net profit of BD 488 thousand attributable to the Bank's owners, a decrease of 19% from BD 602 thousand in the same period last year. The decline was primarily due to reduced recovery income, net interest income, and income from Islamic financing, which were partially offset by increased fee income and reduced operating expenses. However, total comprehensive income for the quarter saw a significant increase, reaching BD 2.1 million compared to BD 144 thousand in Q2 2025, driven mainly by an improvement in the fair value of debt securities.
For the first half of 2026, the net profit attributable to the Bank's owners was BD 793 thousand, down 18% from BD 965 thousand in the corresponding period of 2025. The decline was attributed to lower recovery income and reduced net interest and Islamic financing income, partially mitigated by increased fee income, lower operating costs, and a decrease in expected credit losses. The Bank reported a total comprehensive loss of BD 2.6 million for the first half of 2026, compared with a total comprehensive income of BD 1.3 million in the first half of 2025, mainly due to a decrease in the fair value of debt securities.
Equity attributable to the Bank's owners stood at BD 64.8 million as of 30th June 2026, a 4% reduction from BD 67.3 million at the end of December 2025. Total assets decreased slightly to BD 204.6 million from BD 208.1 million as of 31st December 2025, reflecting a reduction of less than 2%.
Ghassan Ghaleb Abdulaal, Chairman of the Board of Directors of BDB, commented on the results, highlighting the resilience of BDB's business model and its strategic advancement despite a challenging regional environment. He emphasized the importance of prudent portfolio management and operational efficiency in supporting SMEs, a key driver of Bahrain's economic growth. Abdulaal reaffirmed BDB's commitment to developing innovative financing solutions, expanding partnerships within the entrepreneurial ecosystem, and enhancing the competitiveness of SMEs.
Dalal Al Qais, Group Chief Executive Officer of BDB, outlined the Bank's priorities for the first half of the year, focusing on operational efficiency, effective risk management, and evolving propositions to meet the changing needs of SMEs. Al Qais stressed the importance of ongoing investment in innovation, digital transformation, and improving customer experience to deliver greater value to both emerging entrepreneurs and established enterprises, thereby enhancing BDB's contribution to the Kingdom's sustainable economic development.