Bahrain: NBB Q1 attributable net profit rises 15% to record $59.4mln

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National Bank of Bahrain (NBB) has seen a 15% rise in its net profit attributable to shareholders to a record BD22.4 million ($59.4 million) for the first quarter (Q1), compared to BD19.4 million in the same period of 2022.

The increase in net profit is mainly due to higher income from loans and securities and continued higher performance from the capital market and treasury teams.

Earnings per share increased to 10 fils ($3 cents) for the first quarter of 2023 compared with 9 fils ($2 cent) in the same quarter of 2022.

Total comprehensive income attributable to NBB’s shareholders for the quarter decreased by 62% to BD15.4 million compared with BD40.9 million in 2022, due to the negative mark-to-market movements of the equity and Bahrain sovereign bond portfolios. The prior year results included significant fair value gains in both the equity and bond portfolios as we exited the pandemic, which were not applicable to 2023.

Balance sheet

The group’s total equity attributable to owners decreased by 7% to BD529.1 million compared to BD565.9 million reported on December 31, 2022. The decrease followed the payment of BD51.5 million of cash dividends during the first quarter of 2023.

The group’s total assets increased by 1% during the quarter to BD4.82 billion compared to BD4.79 billion as on December 31, 2022. The increase was deployed in further strengthening the group’s liquid assets and was driven by the attraction of additional customer deposits into the group during the quarter.

NBB’s Chairman of the Board, Farouk Yousuf Khalil Almoayyed, stated: “We have ushered in the new year with focus, determination and drive, which is reflected in our outstanding record financials. We delivered our highest quarterly consolidated net profit of BD22.4 million. I would like to commend our Group CEO, Usman Ahmed, for his efforts in realising the group’s objectives and for his aspirations to help us achieve future milestones. The bank will continue to deliver on its non-financial ambitions underscored by our commitment to implementing ESG practices across all verticals and our brand promise of being ‘Closer to You’. We look forward to continuing to exhibit a level of high-performance in the coming quarters.”

Increasing buffers

Ahmed, said: “We are proud to have recorded a 25% growth in operating profit, which has allowed the group to increase its precautionary provision buffers further, resulting in a 15% increase in attributable profit compared to the first quarter of 2022. Despite large planned loan maturities in March, NBB demonstrated marginal growth in the group’s balance sheet, a reflection of its ability to continue to attract business. Average loan balances during the first quarter were maintained at higher levels than the yearend, contributing to the growth in revenues.

"This rise in revenues was achieved while keeping expenses controlled and has positively impacted the group’s cost-to-income ratio. The positive development in revenue and balance sheet management underpin NBB’s core business activities and its commitment to diversifying its revenue sources while maintaining cost-control year-round. I would like to congratulate our shareholders and staff for these record-breaking strong results during the first quarter and look forward to further growth in the year ahead.”