Al Baraka Islamic Bank has secured shareholder approval for its 2025 financial statements and won backing for a reappointed board to serve a fresh three-year term, marking a governance milestone for the Bahrain-based lender as it tries to steady performance after another annual loss. The 43rd Annual General Meeting, held virtually on March 30 through the Bahrain Clear eAGM platform, also approved zakat payable on behalf of shareholders, cleared the board of liability for the 2025 financial year and authorised the appointment of external auditors for 2026, subject to regulatory approval.
The meeting carried added importance because the bank’s previous board term had already been extended by six months with approval from the Central Bank of Bahrain, moving its end date to April 10, 2026. In its 2025 corporate governance report, the bank said the board elected in October 2022 remained in place through year-end 2025 under that extension. Shareholders have now approved the election and reappointment of directors for the 2026-2029 term, again subject to the central bank’s approval, giving the bank a clearer governance runway after an interim period.
The financial picture presented to shareholders was mixed. The audited accounts show the group cut its net loss for 2025 to BHD 2.957 million from BHD 7.6 million a year earlier, while total comprehensive loss narrowed to BHD 2.803 million from BHD 7.193 million. That suggests some improvement in underlying pressure points, but it still leaves the bank in loss-making territory at a time when investors in Gulf banking are placing a premium on capital discipline, cleaner balance sheets and predictable earnings.
Operationally, the numbers point to a bank still dealing with margin and profitability constraints even as parts of the balance sheet expanded. Total operating income before attribution to quasi-equity fell to BHD 73.305 million in 2025 from BHD 82.243 million in 2024. Net income before taxation edged into positive territory at BHD 125 thousand, against a pre-tax loss of BHD 2.08 million the year before, reflecting a better outcome than the headline revenue trend alone would imply. At the same time, the group reported net reversals of impairment and credit losses of BHD 507 thousand in 2025, compared with charges of BHD 1.813 million in 2024, a shift that helped soften pressure on the income statement.
The balance sheet showed stronger growth. Total assets climbed to BHD 1.094 billion at the end of 2025 from BHD 970.217 million a year earlier. Participatory investment accounts rose sharply to BHD 842.212 million from BHD 692.335 million, with notable increases in one-month, three-month and six-month investment accounts. Current accounts also increased to BHD 126.86 million from BHD 109.954 million. Those figures indicate that, despite weak bottom-line performance, the bank was still able to attract funding and enlarge its asset base, a sign that customer confidence in the franchise has held up better than profit trends alone might suggest.
There were also signs of continuing prudence in the resolutions passed at the AGM. Shareholders approved BHD 76,091 in zakat payable on their behalf and reviewed related-party transactions disclosed in the accounts under Note 26, in line with Bahrain’s Commercial Companies Law. The meeting also reviewed the corporate governance report, including performance evaluations for directors, board committees, the board secretary and the Sharia Supervisory Board, alongside meeting attendance and disclosure practices. That emphasis on process and oversight fits with a broader pattern in Bahrain’s banking sector, where regulators and investors have pushed listed institutions to demonstrate stronger governance, transparency and board accountability.
The bank’s leadership used the meeting to frame the outcome as part of a longer effort to improve efficiency, reinforce transparency and expand digital delivery. Chief executive Adel Salem said the AGM allowed shareholders to review performance, achievements and challenges while supporting the bank’s path towards sustainable growth. He also said the lender was seeking to improve operations, strengthen efficiency and use digital transformation to enhance customer experience and business continuity. Those remarks point to management’s central task for the new board term: translating governance continuity and balance-sheet growth into durable profitability.
The meeting carried added importance because the bank’s previous board term had already been extended by six months with approval from the Central Bank of Bahrain, moving its end date to April 10, 2026. In its 2025 corporate governance report, the bank said the board elected in October 2022 remained in place through year-end 2025 under that extension. Shareholders have now approved the election and reappointment of directors for the 2026-2029 term, again subject to the central bank’s approval, giving the bank a clearer governance runway after an interim period.
The financial picture presented to shareholders was mixed. The audited accounts show the group cut its net loss for 2025 to BHD 2.957 million from BHD 7.6 million a year earlier, while total comprehensive loss narrowed to BHD 2.803 million from BHD 7.193 million. That suggests some improvement in underlying pressure points, but it still leaves the bank in loss-making territory at a time when investors in Gulf banking are placing a premium on capital discipline, cleaner balance sheets and predictable earnings.
Operationally, the numbers point to a bank still dealing with margin and profitability constraints even as parts of the balance sheet expanded. Total operating income before attribution to quasi-equity fell to BHD 73.305 million in 2025 from BHD 82.243 million in 2024. Net income before taxation edged into positive territory at BHD 125 thousand, against a pre-tax loss of BHD 2.08 million the year before, reflecting a better outcome than the headline revenue trend alone would imply. At the same time, the group reported net reversals of impairment and credit losses of BHD 507 thousand in 2025, compared with charges of BHD 1.813 million in 2024, a shift that helped soften pressure on the income statement.
The balance sheet showed stronger growth. Total assets climbed to BHD 1.094 billion at the end of 2025 from BHD 970.217 million a year earlier. Participatory investment accounts rose sharply to BHD 842.212 million from BHD 692.335 million, with notable increases in one-month, three-month and six-month investment accounts. Current accounts also increased to BHD 126.86 million from BHD 109.954 million. Those figures indicate that, despite weak bottom-line performance, the bank was still able to attract funding and enlarge its asset base, a sign that customer confidence in the franchise has held up better than profit trends alone might suggest.
There were also signs of continuing prudence in the resolutions passed at the AGM. Shareholders approved BHD 76,091 in zakat payable on their behalf and reviewed related-party transactions disclosed in the accounts under Note 26, in line with Bahrain’s Commercial Companies Law. The meeting also reviewed the corporate governance report, including performance evaluations for directors, board committees, the board secretary and the Sharia Supervisory Board, alongside meeting attendance and disclosure practices. That emphasis on process and oversight fits with a broader pattern in Bahrain’s banking sector, where regulators and investors have pushed listed institutions to demonstrate stronger governance, transparency and board accountability.
The bank’s leadership used the meeting to frame the outcome as part of a longer effort to improve efficiency, reinforce transparency and expand digital delivery. Chief executive Adel Salem said the AGM allowed shareholders to review performance, achievements and challenges while supporting the bank’s path towards sustainable growth. He also said the lender was seeking to improve operations, strengthen efficiency and use digital transformation to enhance customer experience and business continuity. Those remarks point to management’s central task for the new board term: translating governance continuity and balance-sheet growth into durable profitability.
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