Bahrain-listed firms’ net profits triple to $2.8bln

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Bahrain-listed companies saw their net profits triple to $2.8 billion in FY-2021 when compared with $870.2 million in FY-2020 on the back of recovery from the Covid-19 pandemic and the relaxation in restrictions.

According to analysis by Kuwait-based Kamco Invest, the largest five sectors by market cap on Bahrain Bourse (BHB) registered a growth in earnings during the 2021 financial year.

The banking sector lead the way in terms of aggregate FY-2021 net profits, with the sectoral total jumping 102.9pc to $1.23bn from $609m in FY-2020.

Ahli United Bank (AUB) posted the largest FY-2021 net profits among banks at $607m up from $452.2m in FY-2020.

AUB reported its growth was mainly supported by effective balance sheet management and overall economic improvement in Bahrain and the GCC region.

Arab Banking Corp (Bank ABC) was another major contributor to the overall increase in aggregate FY-2021 net profits, as it swung to a net profit of $100m in FY-2021 from a net loss of $89m during FY-2020.

The bank attributed its turnaround to an increase in operating income as well moving on from the impact of ECL charges and regional fraud cases which contributed to its FY-2020 net loss.

The materials sector, which has Alba as its sole constituent, reported the second largest FY-2021 net profits on BHB.

The world’s biggest aluminium smelter outside China posted a record FY-2021 net profit of $1.2bn on the back of increasing aluminum prices and higher production.

In terms of quarterly performance, Q4-2021 total net profits for Bahraini listed companies soared by 584pc to $906.4m from $132.5m in Q4-2020 reflecting the robust full-year performance.

Only one of i3 sectors at the bourse registered a loss in the fourth quarter.

The materials sector contributed the largest Q4-2021 net profit at $480.5m, nearly six-fold higher than $84.9m in Q4-2020.

The banking and telecom sectors followed reporting aggregate Q4-2021 profits of $316.8m and $36.8m respectively.

The bullish trend was visible across the wider GCC region, with earnings reported by GCC-listed companies jumping to a record high of $196.5bn in 2021 as compared to $93.1bn during 2020.

The ‘more than two-fold’ growth came mainly on the back of jump in profits for Aramco (by $56.1bn or 113.8pc year-on-year) followed by banking, materials and utilities companies.

The four sectors accounted for 85pc of the total fullyear net profit in 2021.

Most of the sectors showed solid increase in net profits during the year, especially, the utilities and transportation sector witnessed remarkable jump in net profits 2021 after suffering subpar performance during the pandemic.

Out of the 21 sectors, 4 sectors saw a year-on-year (YoY) decline in profits whereas the rest reported growth.

At the exchange level, Oman was the only market which reported a decline in aggregate net profits for listed companies during FY-2021 with a fall of 3.7pc.

In terms of sectors, profitability for the GCC banking sector reached one of the highest yearly levels during 2021, increasing by 52.9% to $35.4bn.

Banking sector profits reached the highest mark since 2018 and the YoY increase in 2021 was broad-based across the GCC.

Higher profits also pushed the aggregate return on equity for the sector to a 7-quarter high of 10.4pc at the end of 2021 as compared to 9.6pc in Q3-2021 and 8.1pc at the end of 2020.

The banking sector represented 18pc of total aggregate profits during 2021.

avinash@gdn.com.bh

(Image: gdnimages/20220418\20220417_233905_4.jpg)

MANAMA: Bahrain-listed companies saw their net profits triple to $2.8 billion in FY-2021 when compared with $870.2 million in FY-2020 on the back of recovery from the Covid-19 pandemic and the relaxation in restrictions.