Third quarter
National Bank of Bahrain B.S.C. (NBB) has reported a 60% increase in its net profit attributable to shareholders to BHD 18.2 million (USD 48.3 million) for the third quarter ended 30 September 2023, compared to BHD 11.4 million (USD 30.2 million) in the same period of 2022. The increase is mainly due to higher income from the underlying loans, placements, and investment securities activities, in addition to lower provisioning requirements in the third quarter of 2023 compared to the same period in 2022.
Earnings per share increased to 8 fils (USD 2 cents) for the third quarter of 2023 compared with 5 fils (USD 1 cents) in the same quarter of 2022.
Total comprehensive income attributable to NBB’s shareholders for the quarter increased by 109% to BHD 20.5 million (USD 54.4 million) compared to BHD 9.8 million (USD 26.0 million) in 2022. The increase is mainly attributable to the mark-to-market movements of the Bank’s debt securities.
Year-to-date
NBB has reported a 16% increase in its net profit attributable to shareholders to BHD 59.0 million (USD 156.5 million) for the nine months ended 30 September 2023, compared to BHD 50.8 million (USD 134.7 million) in the same period of 2022. The rise in net profit was a result of increased income from loans, placements, and investment securities, as well as lower provisions compared to the same period in 2022.
Earnings per share increased to 26 fils (USD 7 cents) for the period compared with 23 fils (USD 6 cents) in the same period of 2022.
Total comprehensive income attributable to NBB’s shareholders for the period increased by 28% to BHD 63.3 million (USD 167.9 million) compared with BHD 49.3 million (USD 130.8 million) in 2022. The increase is mainly due to the mark-to-market movements of the Bank’s debt securities.
Balance sheet
The Group’s total equity attributable to owners decreased by 2% as at 30 September 2023 to BHD 554.3 million (USD 1,470.3 million) compared to BHD 565.9 million (USD 1,501.1 million) reported at 31 December 2022. The decrease followed cash dividend payments of BHD 74.0 million made during 2023 in relation to 2022 appropriations and 2023 interim dividends. These payments were largely offset by the attributable profits for the nine months of 2023.
The Group’s total assets increased by 5% during the quarter to BHD 5,003.6 million (USD 13,272.1 million) compared to BHD 4,785.3 million (USD 12,693.1 million) recorded on 31 December 2022.
Commentary
NBB’s Group Chief Executive Officer, Usman Ahmed, commented; ‘We are pleased to announce an attributable net profit of BHD 59.0 million for the nine months and BHD 18.2 million for the third quarter, representing double-digit growth rates of 16% and 60% when compared to the same periods in 2022. NBB has also demonstrated effective balance sheet management and recorded a 5% growth in assets from the year-end level, with the closing value as of 30 September 2023 exceeding BHD 5.0 billion, a record level for the Group. The achievements during the third quarter have extended beyond the financial results, with NBB being recognised once again at the Euromoney Awards for Excellence 2023 as the ‘Best Bank for ESG in Bahrain’ for the second consecutive year. We are proud of the milestones achieved thus far in 2023, and we look forward to a continued successful year ahead.’