SICO publishes research coverage on Bahrain's banking sector titled Bahrain's Banking Sector to sustain growth momentum

According to the report, the Kingdom's Banking sector is set to continue its growth momentum driven by buoyant regional economies, growth in the domestic economy, and the investor friendly regulatory regime.

SICO forecasts that the total assets of Bahrain's wholesale banks will grow at a CAGR of 15-20% over the next three years while retail banking assets are expected to grow at a faster pace of 20-25% over the same period driven by domestic liquidity, an increase in the expatriate population and a rise in average wages.

The report identifies Islamic banking as a key driver of growth going forward as the growth in Shariah compliant assets will exceed the overall growth rate of the sector.

The 76-page report discusses in detail various aspects of Bahrain Banking Sector and overall economy such as the industry structure, regulatory framework, key industry drivers, operational matrices, possibility of currency revaluation, impact of sub-prime crisis on the Bahrain banking sector, competitive landscape etc.

This report provides a good overview of the Bahrain Banking sector which has been known as the banking and financial centre of the GCC and the Middle East region for the past three decades.

Justifying its role in the region, the island had 149 banking institutions, both locally and globally incorporated, with combined assets of $245.8bn in 2007.

Commenting on the report, Anthony Mallis, Chief Executive Officer, said, "Our latest research report offers our investors an overview of Bahrain's Banking sector. We felt that it is important for us to provide a detailed overview of the Bahrain Banking Sector which is drawing attention from international investors. The report becomes all the more important as Bahrain banking sector thrives on the buoyant regional economy offering investors significant investment opportunities to benefit from the buoyant regional economy."

The report will serves as a handbook for potential as well as existing investors interested in Bahrain's Banking Sector.

The report also presents the brief profiles, analysis of latest and historical financial performance, operating and valuation ratios of the leading ten banks (both retail and wholesale) listed on the Bahrain Stock Exchange, offering investors an opportunity to compare and contrast their performances from an investor's perspective.

While highlighting the attractiveness and investment opportunities, the report also highlights the competition Bahrain faces as a regional financial centre.

SICO's is of the view that a favorable regulatory environment, successful track record and business friendly policies provide a competitive edge to Bahrain over other emerging locations in the region.

The report also highlights the increasing exposure of Bahrain banks to real estate and construction.

Securities & Investment Company is an investment bank offering a selective range of services, including asset management, brokerage, corporate finance and market-making, on a regional basis and with a particular emphasis on Bahrain.

SICO was incorporated in Bahrain in 1995 and holds a banking license from the Central Bank of Bahrain.