MANAMA, 10 November 2006 — Bahrain’s banking sector grew by 3.4 percent in the third quarter of this year, according to figures released by the Central Bank of Bahrain (CBB) yesterday.
The CBB’s consolidated balance sheet of the banking system, which comprises full commercial banks (FCBs), offshore banking units (OBUs), and investment banks (IBs), increased by $5.5 billion (3.4 percent) to reach $168.4 billion at end-September, compared with $162.9 billion at end-June.
When compared with end-September 2005, the consolidated balance sheet of the banking system increased by 26.3 percent. OBUs represented 82 percent of the consolidated balance sheet, while FCBs accounted for 11.9 percent, and IBs for 6.1 percent.
Total domestic assets amounted to $26.6 billion at end-September, compared with $24.8 billion at end-June, an increase of $1.8 billion (7.3 percent).
Foreign assets increased by $3.6 billion (2.6 percent) to reach $141.8 billion at end-September, compared with $138.2 billion at end-June 2006. The net foreign assets however decreased by $0.6 billion (7.8 percent) at end-September, to reach $7.1 billion, compared with $7.7 billion at end-June.
Total domestic liabilities amounted to $33.8 billion at end-September, compared with $32.5 billion at end-June, an increase of $1.3 billion (4 percent). Foreign liabilities increased by $4.2 billion (3.2 percent) to reach $134.7 billion at end-September, compared with $130.5 billion at end-June.
The consolidated balance sheet of full commercial banks increased by 261.9 million Bahraini dinars (3.6 percent), to reach 7.52 billion at end-September, compared with 7.26 billion at end-June and compared with end-September 2005, the consolidated balance sheet of full commercial banks increased by 28.4 percent.
Total domestic assets increased by 43.6 million dinars (0.8 percent) at end-September 2006 to reach 5211.2 million dinars. Claims on non-banks increased by 53.5 million dinars (1.9 percent), on the government (securities) by 9.3 million dinars (2.3 percent) and on banks by 5.7 million dinars (0.6 percent), while claims on the CBB decreased by 56.5 million dinars (11.9 percent). Foreign assets increased by 218.3 million dinars (10.5 percent), to 2307.1 million dinars at end-September 2006, compared with 2.09 billion dinars at end-June. Claims on non-banks increased by 388.7 million dinars (42.6 percent) while claims on banks decreased by 170.4 million dinars (14.5 percent).
Total outstanding loans provided to residents by commercial banks increased by 40.2 million dinars (1.4 percent) to 2.9 billion dinars at end-September 2006, compared with 2.86 billion dinars at end-June.
The sectoral distribution of total outstanding loans indicates that 52.4 percent were in the form of business lending, while personal and government sectors accounted for 41 percent and 6.6 percent, respectively.