NBB net profit surges 11.3pc to BD55 million

National Bank of Bahrain (NBB) delivered strong financial results and continued growth for the first nine months of 2018 marked by an 11.3 per cent rise in net profit at BD55 million ($146.3m) compared with BD49.4m ($131.4m) for the corresponding period of 2017.

Strengthened results were supported by more prudent asset liabilities management.

For the third quarter of 2018, the bank recorded a net profit of BD18.2m, a growth of 2.8pc compared with BD17.7m in the prior-year period.

Operating profit rose by 9.7pc year-on-year (YoY) to BD57.5m compared with BD52.4m in the prior-year period, excluding certain one-off income of BD3.3m in the previous year.

For the third quarter of 2018, it rose by 9.6pc to BD19.5m compared with BD17.8m in third quarter of 2017.

Net interest income increased 18.9pc YoY to BD64.2m compared with BD54m in the prior-year period.

For the third quarter of 2018, it increased 20.9pc to BD23.1m compared with BD19.1m in third quarter of 2017.

Other income increased by 8pc YoY to BD24.3m compared with BD22.5m in the prior-year period, excluding certain one-off income of BD3.3m in the previous year.

For the third quarter of 2018, it decreased by 8.5pc to BD6.5m compared with BD7.1m in third quarter of 2017.

Operating costs were up to BD31m compared with BD24.1m, an increase of 28.6pc which is in line with the ongoing investments in human capital and technology to support the bank’s transformation strategy.

That resulted in an increase of cost-to-income ratio to 35pc. For the third quarter of 2018, operating costs were BD10.1m compared with BD8.4m in third quarter of 2017.

Total earning assets stayed consistent at BD2,848.1m compared with BD2,865.7m.

Loans and advances increased 2.2pc to BD1,172.8m. Customer deposits stood at BD2,082.5m compared with BD2,074.5m.

Total equity grew by 7.6pc to BD465.3m.

Earnings per share during the period increased from 35.8 fils to 39.8 fils.

“Once again, the bank has achieved solid double-digit growth in profitability whilst simultaneously increasing investments in human capital and technology, the cornerstones of the transformation strategy aimed at delivering sustainable growth,” NBB chairman Farouk Almoayyed said.

“Advancements for period also reflect NBB’s success and commitment to stepping up participation in the local and regional markets. This includes enhanced support for SMEs and greater funding for key national and multinational corporates plus the development of new products and services.”

The bank’s chief executive Jean-Christophe Durand said, “For the nine-month period, we reported a solid rise of 9.7pc (excluding certain one-off income) in operating profit backed by increased income generation from key areas of the business. Our digital transformation also continued in line with broader efforts to create greater long-term efficiencies and value.”

“Having rolled out our business online banking in the prior quarter, we continued to onboard business and corporate clients providing them with the benefits of our enhanced capabilities and services while working to further innovate and digitalise the business. We enter the fourth quarter with strong momentum and look forward to recording even further operational progress and financial gains during the remainder of 2018.”

Source: http://www.gdnonline.com/Details/426370/NBB-net-profit-surges-113pc-to-BD55-million