NBB posts BD53.3 M net profit

MANAMA: National Bank of Bahrain (NBB) has reported a 28.2% decrease in its net profit attributable to equity shareholders to BHD 53.3 million (USD 141.4 million) for the year ending 31 December 2020, compared to BHD 74.2 million (USD 196.8 million) in 2019. Creation of precautionary provisions, lower margins, lower income from associate equity valuations and lower received dividends were all factors impacting the net profit in 2020 following the COVID-19 pandemic.

Basic and diluted earnings per share during the year decreased by 23.8% to 32 fils (USD 8 cents) compared with 42 fils (USD 11 cents) in 2019.

Operating income for the year increased by 22.4% to BHD 148.9 million (USD 395.0 million) compared with BHD 121.7 million (USD 322.8 million) in 2019. Operating profit at BHD 77.7 million (USD 206.1 million) was up by 1.6% from the 2019 level of BHD 76.5 million (USD 202.9 million).
The Group’s total equity attributable to owners decreased by 2.4% to BHD 519.7 million (USD 1,378.5 million) compared with BHD 532.3 million (USD 1,411.9 million) recorded as of 31 December 2019. The decrease was due to the 2019 cash dividend payout, the reduction in the mark-to-market on Bahrain Sovereign securities classified as fair value through other comprehensive income as well as due to absorbing the cost of deferring loan repayments since March in relation to supporting customers during the first six months of the pandemic.

The Group’s total assets increased by 36.5% to BHD 4,361.4 million (USD 11,568.7 million) compared to BHD 3,194.5 million (USD 8,473.5 million) recorded on 31 December 2019. The increase was attributable to the consolidation of Bahrain Islamic Bank B.S.C. (“BISB”) following the acquisition in January 2020 as well as strong demand for NBB loan products during 2020.