NBB posts BD56m net profit

MANAMA: National Bank of Bahrain (NBB) has reported a 1.8 per cent increase in its net profit to BD56 million for the nine months ended September 2019, compared with BD55m for the same period last year.

Operating profit also showed a healthy growth of 8.3pc to BD62.3m, compared with BD57.5m for the same period in 2018.

This was achieved despite provisions of BD6.3m, which were more than double the amount in the corresponding period in 2018.

Operating income during the nine months saw an increase of 7.2pc year-on-year to BD94.9m compared with BD88.5m for the same period in 2018.

In addition, net interest income rose by 9.8pc to BD70.5m compared with BD64.2m in the prior-year period.

Improvements were driven by prudent asset liabilities management and the acquisition of new customers from various sectors across segments.

During the first nine months of 2019, other income rose by 0.4pc year-on-year to BD24.4m compared with BD24.3m in 2018.

Operating costs saw a 5.2pc increase to BD32.6m compared with BD31m, which is in line with the bank’s ongoing investments in human capital and technology to support its transformation strategy.

Cost-to-income ratio was 34.4pc, which stands amongst the best in the industry.

Total comprehensive income for the nine months period increased by 14pc to BD63.6m compared with BD55.8m for the same period last year.

Total earning assets increased by 5.2pc and declined by 0.8pc year-on-year respectively to BD2,996.6m compared with BD2,848.1m recorded as of end-September 2018 and BD3,020.7m recorded as of end-December 2018.

Total assets increased by 5.4pc and decreased by 0.8pc year-on-year respectively to BD3,170.5m compared with BD3,006.7m recorded as of end-September 2018 and BD3,195.5m recorded as of end-December 2018.

Average loans and advances remained steady at BD1,157.4m, as did average customer deposits at BD2,074.9m, while total equity grew by 8.6pc and 6.2pc year-on-year respectively to BD505.2m compared with BD465.3m as at end-September 2018 and BD475.8m as at end-December 2018.

Earnings per share during the nine months period increased by 2.8pc to 37 fils compared with 36 fils for the same period in 2018.

Chairman Farouk Almoayyed said, “Our year-on-year growth is attributed to the strong results of our transformation strategy which has to-date proved to be extremely fruitful. We have seen encouraging growth in terms of ratios and heightened activity across our commercial banking segment. Much of our focus this year has been on strengthening our participation in major transactions and strategic national projects such as Alba’s structured financing and the sovereign bond, as part of our commitment to fuel the kingdom’s economy. Our digitalisation plans are well underway with the opening of our new digital branches in Seef Mall and Atrium, which we consider significant milestones in our quest to get closer to our customers and enhance the customer experience, which remains one of our top priorities.”

Following the interest rate cuts during the quarter, NBB witnessed a net profit decrease of 12.1pc to BD16m, compared with BD18.2m in the corresponding quarter of 2018.

Operating profit dropped to BD17.6m, a 9.7pc decline compared with BD19.5m in Q3 of 2018, while operating income for the same period saw a slight decline of 3pc to BD28.7m compared with BD29.6m recorded in 2018.

Net interest income in Q3 of 2019 also witnessed a slight dip of 2.6pc to BD22.5m compared with BD23.1m in Q3 of 2018, which was largely attributed to a decline in market rates.

Other income saw an 4.6pc drop in the third quarter of 2019, to BD6.2m, compared with BD6.5m recorded in Q3 of 2018.

Operating costs during the same quarter increased to BD11.1m compared with BD10.1m cited in the same period last year.

Total comprehensive income also declined by 53.9pc to BD19.1m compared with BD41.4m in the third quarter of last year, due to lower fair value revaluation on debt security instruments.

Earnings per share dropped by 8.3pc to 11 fils compared with 12 fils in the third quarter of last year.

Chief executive Jean-Christophe Durand said that despite a challenging economic environment and a slight dip recorded in some areas of the Q3 financials, revenues have grown by 7.2pc compared with the same period in 2018.

“Additionally, disciplined cost management has enabled us to maintain a cost-to-income ratio of 34.4pc, that stands amongst the best in the industry.”

Source: http://www.gdnonline.com/Details/634592