Khaberni - Islamic Bank ABC announced today its financial results for the year that ended on December 31, 2025: the bank concluded the year with net profits amounting to US$50.3 million, after accounting for the additional minimum tax that came into effect in Bahrain starting from January 2025. Net profits before taxes and Zakat grew by 13% (reaching 59.5 million in 2025 compared to 52.7 million in 2024). This strong performance is attributed to the growth in income from core business, which offset the effects of ongoing market challenges amid geopolitical uncertainty and declining profitability rates. The total assets of the bank also increased to 3.3 billion US dollars, achieving a growth of 14.3% on an annual basis, while capital ratios remained at healthy levels.
As a crowning achievement of these results, Islamic Bank ABC has won several prestigious awards in the banking sector, including the 'Best Financial Institution for Sukuk Issuance in Bahrain' at the Euromoney Awards for Islamic Finance for the year 2025. These awards signify the bank's ongoing excellence in structuring, arranging, and distributing Sukuk transactions, and bolstering its status in the Islamic finance sector regionally. These awards are among nine titles the bank garnered over the year 2025.
Key performance highlights
• The net profits amounted to 50.3 million US dollars compared to 52.3 million dollars in 2024. Meanwhile, net profits before taxes and Zakat tallied 59.5 million US dollars compared to 52.7 million dollars in 2024.
• The total operating income after profit earned on Murabaha and other due amounts before attribution to quasi-equity totaled 184.7 million US dollars, marking an increase of 3.3% over the last year, while the net income attributed to quasi-equity increased by 4.3%.
• Operational expenses reached 10.1 million US dollars, recording a decrease of 26.9% compared with 13.8 million US dollars in the previous year.
• The capital base of the bank remains strong, with a capital adequacy ratio of 40.15%.
Commenting on the results, Mr. Hammad Hassan, Managing Director of Islamic Bank ABC, said: "The year 2025 was another strong year of achievement for the bank, as we continued to achieve steady growth on an annual basis. With the implementation of the additional minimum tax in Bahrain at the beginning of 2025, the bank recorded a tax of 8.7 million US dollars, it being the first year that its operations were subject to tax. The bank recorded net profits of 50.3 million US dollars, while its income before taxes and Zakat rose to 59.5 million US dollars compared to 52.7 million dollars in 2024, thereby achieving an annual growth of approximately 13%. This improvement in profitability before tax is attributed to strong growth in operating income, supported by higher returns from core customer businesses and investments, significant increases in fee and commission income, as well as wise cost management and improved credit performance, positively reflecting on the results after retrieving expected credit loss provisions. Our results for 2025 demonstrate the strength of our business model, as we achieved multiplied profitability before taxes, while continuing to focus on diversifying income sources, enhancing operational efficiency, and improving asset quality. Additionally, our performance in 2025 was recognized by the Euromoney Awards for Islamic Finance after we won the title of 'Best Financial Institution for Sukuk Issuance in Bahrain', among 8 other different awards from Islamic Finance News magazine, notably including the 'Best Islamic Corporate Bank in Bahrain'. We look forward to continuing this resilient and stable performance in 2026, Inshallah."
Business Performance (Three-Month Period):
• The net profits for the fourth quarter were 10.9 million US dollars, compared to 14.4 million US dollars registered in the fourth quarter of the previous year.
• Credit loss provisions for the fourth quarter were 2.1 million US dollars, compared to a recovery of 0.7 million US dollars for the same period last year.
• Operational expenses stabilized at 2.7 million US dollars, compared with 2.6 million US dollars registered during the previous year.
Business Performance (Fiscal Year):
• The net profits amounted to 50.3 million US dollars, compared to 52.3 million dollars in 2024.
• The total operating income after accounting for the profit on Murabaha and other due amounts before assignment to quasi-equity was 184.7 million US dollars, marking an increase of 3.3% over the last year, while the net income attributed to quasi-equity rose by 4.3%.
• Credit loss provisions for the year showed recovery of 0.5 million US dollars, compared with 1.4 million US dollars of provisions recorded the previous year.
• Operating expenses amounted to 10.1 million US dollars, a decrease of 26.9% compared to 13.8 million US dollars in the previous year. After adjusting for exceptional expenses in the previous year, expenses increased by 2.7% compared to last year.
Balance Sheet:
• The total assets of Islamic Bank ABC amounted to 3.274 billion US dollars as of December 31, 2025, compared to 2.865 billion US dollars at the end of 2024.
• Investments amounted to 1.5 billion US dollars, compared to 1.3 billion US dollars as of the end of 2024.
• The receivables from Murabaha, Ijara, and participative financing totaled 1.700 billion US dollars, compared to 1.550 billion US dollars at the end of 2024.
• The total equity amounted to 383 million US dollars as of December 31, 2025, compared to 364 million US dollars at the end of 2024.
• The capital base of the bank remains very strong, with a capital adequacy ratio of 40.15%, mostly from Tier 1, which amounted to 39.65%.
