The Big Numbers Race: «Al Salam» Competes with «Al Baraka» for the Title of the Third Largest Bank in Bahrain
First Bank
In a banking market characterized by relative stability and a balance among major players, a growing competitive dynamic is emerging within Bahrain’s banking sector.
Al Baraka Bank currently holds third place in terms of total assets, while Al Salam Bank ranks fourth, amid an ongoing race to increase market share and narrow the gap with higher-ranked banks.
According to 2025 data, Al Baraka Bank’s total assets reached approximately $31.01 billion, compared to $21.36 billion for Al Salam Bank by the end of the same year.
This advantage extends to the deposit structure as well, with Al Baraka’s deposit portfolio reaching $8.17 billion by the end of 2025, versus about $3.94 billion for Al Salam Bank, reflecting the strength of its customer base and the broader reach of its business network.
The gap is also evident in lending activity, where Al Baraka Bank recorded net financing of around $12.51 billion by the end of 2025, compared to $10.79 billion for Al Salam Bank.
However, when examining growth dynamics between 2022 and 2025, a notable contrast emerges. Al Salam Bank achieved exceptional growth, with its assets increasing by 106.5% over three years, compared to just 24.1% for Al Baraka Bank. This helped reduce the gap between them to $9.65 billion by the end of 2025, down from $14.64 billion in 2022.
A similar trend appears in deposits, where Al Salam Bank posted strong growth of 170.1% during the same period, compared to 26.7% for Al Baraka Bank. Despite this, the gap between the two banks narrowed only slightly, reaching $4.23 billion in 2025 compared to $4.99 billion in 2022, indicating Al Baraka’s continued dominance in funding base size.
On the financing side, Al Salam Bank expanded at a faster pace, achieving growth of 104.7% over three years, versus 19.8% for Al Baraka Bank. This significantly reduced the gap to $1.72 billion by the end of 2025, compared to $5.17 billion in 2022—highlighting its accelerating ability to penetrate the credit market.
In terms of profitability, Al Baraka Bank’s business model remains strong. It recorded net profits of $356.82 million in 2025, with a return on assets (ROA) of 1.25% and a return on equity (ROE) of 17.05%, reflecting high operational efficiency and strong returns on its asset base.
In contrast, Al Salam Bank posted net profits of $226.68 million, with an ROA of 1.13% and an ROE of 12.73%—solid figures, though still below those of Al Baraka Bank.
Regarding capital strength, Al Baraka Bank maintains a clear advantage that supports its future expansion capacity. Its capital stood at approximately $1.24 billion by the end of 2025, compared to around $787.16 million for Al Salam Bank, giving it greater flexibility to finance growth and absorb potential shocks.
Overall, the financial data show that Al Baraka Bank still holds a leading position in terms of size and profitability, while Al Salam Bank continues to close the gap at an accelerated pace, driven by strong growth across its operations. This trajectory enhances its potential to become a more formidable competitor in the coming years, should it sustain its current expansion momentum.
