NBB net profit up 4pc

National Bank of Bahrain (NBB) has reported an eight per cent decrease in its net profit to BD18.4 million ($48.8m) for the second quarter ended June 30, 2023, compared to BD20m ($53.1m) in the same period of 2022.

The difference in net profit is predominantly due to lower realised gains from the sale of investment securities in 2023.

Excluding the difference in gains in both years, the second quarter’s attributable net profit would register a growth of 23pc.

Earnings per share marginally decreased to 8 fils (2 cents) for the second quarter of 2023 compared with 9 fils (2 cents) in the same quarter of 2022.

Total comprehensive income for the quarter increased to BD27.4m compared with a loss of BD1.4m in 2022.

The increase is mainly attributable to the mark-to-market movements of the bank’s investment portfolio.

NBB has reported a 4pc increase in its net profit to BD40.8m for the six months ended June 30, 2023, compared to BD39.4m in the same period of 2022.

The rise in net profit was driven by higher income from loans and investment securities.

Earnings per share increased to 18 fils for the first half of 2023 compared with 17 fils in the same period of 2022.

Total comprehensive income for the period increased by 8pc to BD42.8m compared with BD39.5m in 2022.

The increase is mainly due to mark-to-market of the bank’s investment portfolio.

The group’s total equity decreased by 2pc as of June 30, 2023 to BD556.9m compared to BD565.9m reported at December 31, 2022.

The decrease followed the payment of BD51.5m of cash dividends during the first quarter of 2023, largely offset by profits for the first half of 2023.

The group’s total assets increased by 1pc during the quarter to BD4,810m compared to BD4,785.3m recorded as of end-2022.

The increase was driven by the attraction of additional customer deposits into the group during the first half of the year.

Following the group’s strong performance, the board of directors proposed an interim cash dividend of BD22.7m, which represents a 10pc per share dividend.

The payment is subject to the approval of the regulatory authorities.

NBB chairman Farouk Almoayyed stated: “The National Bank of Bahrain’s solid banking fundamentals ensure its sustained prosperity and we have succeeded in building upon the profits seen during the first quarter.

“The bank has recorded a 7pc and 2pc increase in operating income and operating profit respectively. This is a testament to the strength of the bank’s diversified revenue sources and its ability to efficiently manage its balance sheet. The growth in operating profitability is also a reflection of the group’s strong underlying core business activities, highlighting the bank’s continued ability to generate returns for its shareholders.”

NBB Group chief executive Usman Ahmed said: “We are pleased to announce an attributable net profit of BD40.8m for the first half of 2023, which represents an increase of 4pc compared to 2022. Our year-to-date success has not just been limited to financial outcomes.

“We remain deeply committed and focused on customer centricity and are pleased to have been recognised as the ‘Best Bank in Bahrain’ at the Euromoney Middle East Awards for Excellence 2023 and also being once again ranked first in the Mena region on sustainability by Refinitiv ESG Scoring. This well-rounded performance is indicative of NBB’s continued development as one of the region’s leading banking institutions.”

 

Source: https://www.gdnonline.com/Details/1288255/NBB-net-profit-up-4pc

 

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