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Top Banks in Bahrain | Full Guide

Top Banks in Bahrain, Middle East | Full Guide

Credit ratings, strategic positioning, and market dynamics in the Gulf’s premier financial hub

November 2025 Gulf Banking Analysis Financial Research

Bahrain’s banking sector stands as the jewel of Gulf financial services: Four major institutions dominate the kingdom’s banking landscape, with combined assets exceeding $60 billion as of 2025.

Led by Gulf International Bank’s A- rating and $47 billion in assets, these institutions represent the pinnacle of Middle Eastern banking excellence, serving both regional and international markets from Bahrain’s strategic financial center.

From Kuwait Finance House’s Islamic banking leadership through Ahli United Bank to the sovereign-backed strength of National Bank of Bahrain, these institutions embody decades of financial innovation and regulatory excellence in the Gulf Cooperation Council.

$60B+
Combined Assets
Top 4 institutions
A-
Highest Rating
Gulf International Bank
4
Major Banks
Elite institutions
97%
Saudi PIF Stake
In GIB ownership

Banking Excellence Tiers

Asset Leader
Gulf International Bank
$47.1B
Islamic Pioneer
Ahli United Bank
KFH Group
Asset Portfolio Comparison: Top Bahraini Banks (USD Billions, 2025)
Credit Rating Distribution: Bahrain’s Banking Sector

Comprehensive Bank Profiles

Ahli United Bank (AUB)
Fitch BB+
#1
BB+
Long-Term IDR
bb-
Viability Rating
KFH
Parent Company
Fully owned by Kuwait Finance House (A/Stable), AUB represents Islamic banking excellence in Bahrain. Following its 2024 conversion to Islamic banking and ongoing rebranding under the KFH brand, AUB serves as a regional powerhouse with operations across strong GCC markets and internationally. The bank’s rating reflects potential support from its highly-rated parent, though constrained by Bahrain’s Country Ceiling. Strong profitability and capitalisation balance exposure to volatile markets.
National Bank of Bahrain (NBB)
Fitch B+
#2
B+
Long-Term IDR
21%
Domestic Market Share
20.4%
CET1 Ratio
Bahrain’s largest domestically focused bank, NBB commands 21% of domestic retail bank assets as of end-2024. The bank demonstrates a leading domestic franchise with healthy profitability (3.1% average operating profit vs RWAs in 2024) and adequate capitalisation well above regulatory minimums. Strong sovereign exposure of BHD 1.8 billion (3.3x CET1 capital) reflects its role in the domestic economy. Asset quality remains adequate with improving impaired loans ratio from 6.2% to 4.9% in 2024.
Gulf International Bank (GIB)
Fitch A-
#3
$47.1B
Total Assets
A-
Fitch IDR
97.2%
Saudi PIF Stake
A large merchant bank offering wholesale financial services with recent emphasis on project finance, corporate finance, and asset management. GIB’s A- rating reflects very high probability of support from Saudi Arabian authorities through the Public Investment Fund’s 97.2% ownership. The bank serves major private sector corporations, Gulf financial institutions, multinationals, and GCC governments. Strong niche business model with stable asset quality and reasonable capital buffers, primarily exposed to Saudi Arabia (46% credit risk exposure).
Bank of Bahrain and Kuwait (BBK)
Fitch B+
#4
B+
Long-Term IDR
b+
Viability Rating
B
Short-Term IDR
BBK’s ratings are driven by standalone strength, reflected in its ‘b+’ Viability Rating. The bank demonstrates a strong domestic franchise with adequate asset quality, healthy profitability, high capital ratios, and comfortable funding and liquidity. However, the VR is capped by Bahrain’s B+ sovereign rating due to large exposure to the domestic operating environment. High concentration risks characterize the bank’s profile, though it maintains solid fundamentals within the challenging regional context.

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Strategic Banking Ecosystem Analysis

Bahrain’s banking sector represents the pinnacle of Gulf financial sophistication, with four major institutions demonstrating diverse ownership models, strategic positioning, and rating profiles that reflect both domestic strength and international partnerships.

  • Sovereign support structures: GIB benefits from Saudi PIF backing (A- rating), while AUB leverages KFH Group strength, demonstrating Gulf integration
  • Domestic leadership: NBB and BBK maintain strong local franchises despite B+ sovereign constraints, showing resilient domestic banking capabilities
  • Islamic banking transformation: AUB’s conversion and KFH rebranding highlights the sector’s evolution toward Shariah-compliant financial leadership
  • Regional wholesale focus: GIB’s merchant banking model serves GCC governments and corporations, positioning Bahrain as a regional financial hub

The combination of sovereign-backed institutions, regional Islamic banking leaders, and strong domestic players positions Bahrain’s banking sector as a critical component of GCC financial integration and a gateway for international investment in the Middle East.

Sources: Fitch Ratings, Moody’s Rating Services, S&P Global Ratings, Central Bank of Bahrain, Individual Bank Financial Statements, Gulf Banking Reports

Data Methodology: Credit ratings and financial metrics as reported in latest available rating reports and financial statements. Asset figures converted to USD using period-end exchange rates where applicable.

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