NBB announces 9.3pc increase in net profit

MANAMA: National Bank of Bahrain (NBB) has reported a 9.3 per cent increase in its net profit attributable to equity shareholders at BD15.3 million for the third quarter ended 30 September 2021, compared to BD14m in the same period of 2020.

The increase in net profit is predominantly due to strong business fundamentals such as higher net interest income resulting from higher loan volumes and following the active repricing of the Group’s balance sheet in line with recent interest rate trends, and increased volume of fees received from debt capital market related activities.

Basic and diluted earnings per share increased to 8 fils for the third quarter of 2021 compared with 7 fils in the same period of 2020.

Total comprehensive income attributable to equity shareholders for the quarter decreased by 45.1pc to BD9m compared with BD16.4m in the same period of 2020.

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

Operating income increased by 14.8pc in the third quarter of 2021 to BD38.7m compared with BD33.7m in the prior year period.

The increase is largely due to higher net interest income resulting from higher loan volumes and following the active repricing of the group’s balance sheet in line with recent interest rate trends, and increased volume of fees received from debt capital market related activities.

For the nine months ended 30 September 2021, NBB has reported a 6.3pc increase in its net profit attributable to equity shareholders at BD45.8m compared to BD43.1m in the same period of 2020.

The increase was attributable to the increased cross-selling activities, effective management of the investment securities book and the active repricing of the Group’s balance sheet in line with recent interest rate trends.

Basic and diluted earnings per share increased to 25 fils during the period compared with 23 fils in the same period of 2020.

Total comprehensive income attributable to equity shareholders for the period increased by 98.4pc to BD36.1m compared with BD18.2m in the same period of 2020.

The increase is predominantly attributable to the mark-to-market movements of the Bahrain Sovereign bond portfolio.

Operating income for the period increased by 6.7pc to BD115.5m compared with BD108.2m in the prior year period, due to the group’s active repricing of the balance sheet in line with recent interest rate trends, and increased cross-selling and investment portfolio management activities.

Total equity attributable to owners at BD519.2m is in line with 31 December 2020, despite the payment of dividends in relation to 2020 being made during the period.

Total assets increased by 4.3pc to BD4,548.1m compared to BD4,361.4m recorded on 31 December 2020.

The increase was attributable to higher placements and a continued strong demand for NBB loan products.

Commenting, NBB chairman Farouk Almoayyed said: “We are very pleased with our overall financial results for the third quarter of the year, which demonstrate positive growth. Our net profits have shown an increase from the same period in 2020, and the group’s balance sheet remains strong by showing growth since the year end. Along with the strong results, NBB has continued in the third quarter with its commitment towards implementing ESG considerations into the organisation. We have taken steps to obtain the ISO 14001 certification designed to help us reduce our environmental impact. We have also incorporated ESG methodologies into our lending and investment criteria by exploring ways of introducing ESG risk assessment into our business proposals. I am pleased to say that the NBB Group is performing well this quarter thus far, and we will continue to move forward with our growth plans to reach new levels of banking excellence.”

Jean-Christophe Durand, chief executive of NBB said: “NBB’s financial performance during the third quarter of the year has been positive. Our strong positioning in the market has enabled us to expand our product and services portfolio by strengthening our partnerships, both locally and regionally, as we continue to form solid relationships to enhance our performance. We look forward to further growth and accomplishments which come as a result of our commitment to the nation, to our people and to customer excellence.”

Source: https://www.gdnonline.com/Details/991511

 

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