The Banking Executive Magaizne - March 2025 Issue

The outstanding balance of total loans and credit facilities extended to resident economic sectors by banks in Bahrain increased to BD12.3 bil- lion ($32.62 billion) at the end of De- cember 2024, an increase of 4.6% compared to the end of 2023. The Business Sector accounted for 42.3% and the Personal Sector 48.3% of the total loans and credit facilities. The total private deposits in Bahrain’s retail banks increased to around BD14.2 billion at the end of Decem- ber 2024, a growth of 0.4% com- pared to the end of December 2023. The balance sheet of the banking sys- tem (retail banks and wholesale sec- tor banks) increased to $247.8 billion at the end of December 2024, an increase of 3.9% compared to the end December of 2023. The CCB board also reviewed key monetary and banking indicators for the year 2024 including the money supply, which increased by BD0.3 billion to reach BD16.3 billion at the end of December 2024, compared to the same period in 2023. The board reviewed the topics on the agenda and approved the CBB’s an- nual report and audited financial statements for the year 2024. The board also discussed the CBB’s in- vestment policy for 2025, and re- viewed the CBB’s activities thus far in 2025. The CBB report said Point of Sales (POS) data for January 2025 totalled 21.2 million transactions (77.4% of which were contactless), an increase of 25.4% compared to the same pe- riod in 2024. The total value of POS transactions for January 2025 totaled BD 433.0 million (51.9% of which were contactless), an increase of 14.6% compared to the same period in 2024. The banking sector maintained a high level of capital adequacy and liquidity, as the capital adequacy ratio of the banking sector reached 21.2% in Q4 2024 compared with 19.7% in Q4 2023. The capital ade- quacy ratio for the various banking sectors was 32.0% for conventional retail banks, 16.9% for conventional wholesale banks, 24.6% for Islamic retail banks, and 19.6% for Islamic wholesale banks in Q4 2024. The total number of registered Col- lective Investment Undertakings (CIUs) as of January 2025 stood at 1741 CIUs, compared to 1,678 funds as of January 2024. The net asset value (NAV) of the CIUs increased from $11.139 billion in Q4 2023 to $11.170 billion in Q4 2024, reflect- ing an increase of 0.3%. The NAV of Bahrain domiciled CIUs decreased from $4.309 billion in Q4 2023 to $4.268 billion in Q4 2024, reflecting a decrease of 1%. The NAV of over- seas domiciled CIUs increased from $6.830 billion in Q4 2023 to $6.902 billion in Q4 2024, reflecting an in- crease of 1.1%. Additionally, the NAV of Shari’a-compliant CIUs in- creased from $1.618 billion in Q4 2023 to $1.715 billion in Q4 2024, reflecting an increase of 6% ISSUE 195 MARCH 2025 the BANKING EXECUTIVE 35 Loans Extended by Bahrain Banks INCREASE 4.6% IN 2024