NBB reports 11pc jump in net profit to $135m

National Bank of Bahrain (NBB) has reported an increase of 11 per cent in net profit at BD50.8 million ($134.7m) for the nine months ended September 30, 2022 compared to BD45.8m ($121.5m) in the same period of 2021.

This translates into a 14pc growth in consolidated net profit for the group. The increase in net profit is mainly due to strong business fundamentals reflected through higher net interest income attributable to higher loan volumes and higher other income from the treasury and capital markets activities, slightly offset by higher provision requirements compared to the prior year period following the cessation of the loan deferral programme.

Basic and diluted earnings per share for the period increased to 25 fils compared with 22 fils in the same period of 2021.

Total comprehensive income for the period increased by 37pc to BD49.3m compared with BD36.1m in 2021.

The increase is predominantly attributable to the mark-to-market movements of the Bahrain sovereign bond portfolio and to higher profitability reported in 2022 compared to the same period in 2021.

Operating income for the period increased by 14pc to BD130.2m compared with BD114.5m for the same period in 2021.

The increase was predominantly attributable to higher interest income from loans and higher income from the treasury and capital markets activities.

The group’s total equity as of end-September 2022 at BD537.9m increased by 2pc compared to BD527.8m reported at end-December 2021.

The profits for the nine months ended September 30, 2022 were offset by a reduction in equity following the transfer of 20pc cash dividends.

The group’s total assets increased by 7pc during January to September 2022 to BD4,858.7m compared to BD4,535.6m recorded as of end-2021.

The increase was predominantly related to the loan growth during the year across both the retail and non-retail books.

For the third quarter ended September 30, 2022, NBB has reported a 25pc decrease in net profit to BD11.4m ($30.2m) compared to BD15.3m ($40.6m) in the same period of 2021.

The decrease is mainly due to higher provision requirements in the third quarter following the cessation of the loan deferral programme.

Basic and diluted earnings per share decreased to 6 fils for the third quarter of 2022 compared with 7 fils in the same period of 2021.

Total comprehensive income for the quarter increased by 9pc to BD9.8m compared with BD9m in the same period of 2021.

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

Operating income increased by 14pc in the third quarter of 2022 to BD43.5m compared with BD38.2m in the prior year period.

The increase is largely due to higher net interest income resulting from higher loan volumes, and higher income from the treasury and capital markets activities.

NBB chairman Farouk Almoayyed said: “We are proud of the overall growth NBB has shown over the third quarter, recording a 14pc growth in its operating income in 2022 compared to the third quarter in 2021. This growth highlights NBB’s continued strong business fundamentals. We are also pleased with the various notable non-financial achievements across the quarter.”

Also commenting was NBB chief executive Jean-Christophe Durand who said: “We are pleased to announce a 14pc growth in the total consolidated net profit during for the nine months ended September 30, 2022 compared to the same period in 2021, along with a rise in the group’s balance sheet and loans against the year-end levels, which demonstrate continued attraction for NBB’s offerings in this competitive market across both the retail and corporate segments.”

Source: https://www.gdnonline.com/Details/1146583/NBB-reports-11pc-jump-in-net-profit-to-$135m