National Bank of Bahrain B.S.C. (NBB) has reported an 8% decrease in its net profit attributable to shareholders to BHD 18.4 million (USD 48.8 million) for the second quarter ended 30 June 2023, compared to BHD 20.0 million (USD 53.1 million) 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 23%.
Earnings per share marginally decreased to 8 fils (USD 2 cents) for the second quarter of 2023 compared with 9 fils (USD 2 cents) in the same quarter of 2022.
Total comprehensive income attributable to NBB’s shareholders for the quarter increased to BHD 27.4 million (USD 72.7 million) compared with a loss of BHD 1.4 million (USD 3.7 million) in 2022. The increase is mainly attributable to the mark-to-market movements of the Bank’s investment portfolio.
Year-to-date
NBB has reported a 4% increase in its net profit attributable to shareholders to BHD 40.8 million (USD 108.2 million) for the six months ended 30 June 2023, compared to BHD 39.4 million (USD 104.5 million) 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 (USD 5 cents) for the first half of 2023 compared with 17 fils (USD 5 cents) in the same period of 2022.
Total comprehensive income attributable to NBB’s shareholders for the period increased by 8% to BHD 42.8 million (USD 113.5 million) compared with BHD 39.5 million (USD 104.8 million) in 2022. The increase is mainly due to mark-to-market of the Bank’s investment portfolio.
Balance sheet
The Group’s total equity attributable to owners decreased by 2% as at 30 June 2023 to BHD 556.9 million (USD 1,477.2 million) compared to BHD 565.9 million (USD 1,501.1 million) reported at 31 December 2022. The decrease followed the payment of BHD 51.5 million 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 1% during the quarter to BHD 4,810.0 million (USD 12,758.6 million) compared to BHD 4,785.3 million (USD 12,693.1 million) recorded on 31 December 2022. The increase was driven by the attraction of additional customer deposits into the Group during the first half of the year.
Interim dividends
Following the Group’s strong performance, the Board of Directors proposed an interim cash dividend of BHD 22.7 million, which represents a 10% per share dividend. The payment is subject to the approval of the regulatory authorities.
Commentary
NBB’s Chairman of the Board, Farouk Yousuf Khalil 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 7% and 2% 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’s Group Chief Executive Officer, Usman Ahmed, said: “We are pleased to announce an attributable net profit of BHD 40.8 million for the first half of 2023, which represents an increase of 4% 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.”
