NBB and BBK on Forbes Mideast list of 50 most valuable banks
Two of Bahrain’s biggest banks, NBB and BBK, have been recognised among the Middle East’s financial titans in a ranking by Forbes Middle East.
Compiled using data from stock exchanges in the Arab world, the list of the region’s Top 50 Most Valuable Banks 2023 ranks companies based on their reported market value as of February 28, 2023 with Saudi Al Rajhi Bank topping the chart on the back of its market cap of $75 billion.
Saudi National Bank and Qatar’s QNB Group round up the top three, with $56.4bn and $42.8bn in market cap, respectively.
Collectively, these three companies have a valuation of $174.2bn, accounting for nearly 32 per cent of the total list.
In 31st place is National Bank of Bahrain (NBB), notching up a market value of $3.5bn.
Established in 1957, NBB operates in Bahrain, the UAE, and Saudi Arabia. The bank owns 78.8pc of the Bahrain Islamic Bank, which operates under an Islamic retail banking licence.
In 2022, NBB reported a 28.5pc increase in net profit to $187.5 million, compared to $145.9m in 2021.
Usman Ahmed assumed his role as group CEO of NBB in January 2023.
Bahrain’s second-largest bank by market capitalisation, BBK is ranked 38th on the list.
Led by Abdulrahman Ali Saif as group chief executive, it has a reported market value of $2.32bn.
The bank, which launched its 50th anniversary celebrations last year, operates branches in Bahrain, Kuwait, and India.
It also engages in credit card operations and business process outsourcing services through its subsidiaries, CrediMax and Invita.
In July 2022, Al Salam Bank acquired Ithmaar holding group’s 26.19pc stake in BBK.
In November 2022, the bank signed a partnership agreement with Eskan Bank to provide housing loans to Bahrainis eligible to benefit from the housing finance programme, Mazaya.
BBK’s recorded net profit of $172.8m in 2022, an increase of 21.5pc compared to 2021.
Noting that banks in Mena appear immune to the global financial unrest triggered by the collapse of Silicon Valley Bank which flamed widespread fears of a contagion effect, Forbes has credited their sound footing to solid liquidity buffers, low-cost and stable customer deposits, and a lack of exposure to failed US banks.
According to a report by Moody’s, GCC banks are resilient to the US banks’ distress thanks to broad franchises and their sovereign footprint.
The report also referred to the rapid growth of Islamic finance across GCC banking systems, adding that deposits at these banks are lower cost than at conventional banks and support the banks’ profitability at times of high interest rates.
The 50 banks in Forbes’ list have an aggregate market value of $548.1bn.
The ranking features entities from 10 markets, although GCC banks dominate with 41 entries, representing 82pc of the list.
Overall, Saudi Arabia and the UAE are home to the most banks on the list, with 10 entries each, constituting 40pc of the ranking.
Saudi Arabia’s 10 most valuable banks have an aggregate market value of $223.5bn.
