NBB announces 8.5 per cent increase in net profit to BD55m

National Bank of Bahrain (NBB) has reported a decrease of 20.6 per cent in its net profit attributable to equity shareholders to BD8.1 million ($21.5m) for the fourth quarter ended 31 December 2021, compared to BD10.2m ($27.1m) in the same period of 2020.

The decrease in net profit was predominantly attributable to lower income from non-core activities, namely recoveries received from previously written-off assets.

Basic and diluted earnings per share for the fourth quarter decreased to 4 fils compared with 5 fils in the same period of 2020.

Total comprehensive income attributable to NBB equity shareholders for the quarter decreased by 71.8pc to BD9m compared with BD31.9m in 2020.

The decrease is predominantly attributable to the mark-to-market movements of the Bahrain Sovereign bond and equity portfolios.

Operating income decreased by 10.1pc in the fourth quarter to BD36.4m compared with BD40.5m in the prior year three month period.

The decrease was predominantly attributable to lower income from non-core activities, namely recoveries received from previously written-off assets.

NBB has reported a 1.1pc increase in net profit attributable to equity shareholders to BD53.9m ($143m) for the year ending 31 December 2021, compared to BD53.3m in 2020.

The corresponding consolidated net profit increased by 8.5pc from BD50.7m to BD55m.

The increase was recorded despite the drop in the group’s non-core other income and the precautionary contingent provisions taken in 2021, highlighting the resilience of NBB’s core activities in the form of net interest income and fees and commissions.

Basic and diluted earnings per share for the year at 29 fils (8 cents) was at the same level as 2020.

Total comprehensive income attributable to NBB’s equity shareholders for the year decreased by 10pc to BD45.1m compared with BD50.1m in 2020.

Other comprehensive income includes the mark-to-market movements during a year and hence include temporary fair value fluctuations on the Bahrain Sovereign bonds as well as movements in the market values of the equity portfolios.

Operating income for the year increased by 2pc to BD150.9m compared with BD147.9m in 2020.

Higher income from the bank’s core sources of revenue, net interest income and fees and commission, has outweighed the drop in the non-core income generated from recoveries from previously written-off assets.

The group’s total equity attributable to owners increased by 1.6pc to BD527.8m compared with BD519.7m recorded as of 31 December 2020.

The increase was due to the full year profit attributable to the shareholders of the bank, less the 2020 dividend pay-out.

The group’s total assets increased by 4pc to BD4,535.6m compared to BD4,361.4m recorded on 31 December 2020.

The increase was attributable to the continued strong demand for NBB loan products.

The recommended appropriations for the year 2021 will be submitted to the shareholders at the annual general meeting.

These appropriations include BD37.5m for cash dividend at 20pc and BD2.7m for donations and contributions.

The board of directors have also proposed a 1 for 10 bonus issue through utilisation of BD18.7m from retained earnings and the transfer of BD9.4m from retained earnings to the statutory reserve.

Commenting, NBB chairman Farouk Almoayyed said: “It has been a very fruitful year and we are pleased with this year’s financial results, presenting on overall positive growth for the year. Our net profits have demonstrated an increase from the same period in 2020, and the group’s balance sheet remains strong by showing growth since the year end. We are pleased with all of the various initiatives launched throughout this past year and continue to strengthen our standing in both the Kingdom and the region.”

Jean-Christophe Durand, chief executive of NBB, said, “NBB’s financial performance for the year has been positive, recording a consolidated net profit of BD55m representing an 8.5pc increase over 2020. Excluding the impact of the disclosed non-core activities, the consolidated net profit increased 31.9pc over 2020. 2021 has also been a highlight year showcasing ur commitment towards actualising our sustainability goals and instilling ESG across our community by launching a number of group-led initiatives.”

Source: https://www.gdnonline.com/Details/1033987