Total comprehensive income for the nine months period increased by 14.0% to BHD 63.6 million (USD 169.1 million) compared with BHD 55.8 million (USD 148.4 million) for the same period last year.
Total earning assets increased by 5.2% and declined by 0.8% year-on-year respectively to BHD 2,996.6 million (USD 7,969.7 million) compared with BHD 2,848.1 million (USD 7,574.7 million) recorded as of 30 September 2018 and BHD 3,020.7 million (USD 8,033.8 million) recorded as of 31 December 2018.
Total assets increased by 5.4% and decreased by 0.8% year-on-year respectively to BHD 3,170.5 million (USD 8,432.2 million) compared with BHD 3,006.7 million (USD 7,996.5 million) recorded as of 30 September 2018 and BHD 3,195.5 million (USD 8,498.7 million) recorded as of 31 December 2018.
Average loans and advances remained steady at BHD 1,157.4 million (USD 3,078.2 million), as did average customer deposits at BHD 2,074.9 million (USD 5,518.4 million), while total equity grew by 8.6% and 6.2% year-on-year respectively to BHD 505.2 million (USD 1,343.6 million) compared with BHD 465.3 million (USD 1,237.5 million) as at 30 September 2018 and BHD 475.8 million (USD 1,265.4 million) as at 31 December 2018.
Earnings per share during the nine months period increased by 2.8% to 37 fils (USD 98 cents) compared with 36 fils (USD 96 cents) for the same period in 2018.
Commenting on the latest financials, Mr. Farouk Yousuf Khalil Almoayyed, Chairman of NBB, stated: “We are extremely pleased with the Bank’s overall performance for the nine months period ending 30 September 2019; 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.”
“We are very proud of what we have achieved thus far and we are confident that our efforts will continue to improve results and even greater value to our shareholders, customers and the community at large. On this note I would like to praise the management and employees at NBB for their tremendous efforts and commitment to achieving, and surpassing their targets, and thank our shareholders for putting their trust in NBB”, concluded Mr. Almoayyed.
Following the interest rate cuts during the quarter, NBB witnessed a net profit decrease of 12.1% to BHD 16.0 million (USD 42.6 million), compared to BHD 18.2 million (USD 48.4 million) in the corresponding quarter of 2018. Operating profit dropped to BHD 17.6 million (USD 46.8 million), a 9.7% decline compared to BHD 19.5 million (USD 51.9 million) in Q3 of 2018, while operating income for the same period saw a slight decline of 3.0% to BHD 28.7 million (USD 76.3 million) compared with BHD 29.6 million (USD 78.7 million) recorded in 2018. Net interest income in Q3 of 2019 also witnessed a slight dip of 2.6% to BHD 22.5 million (USD 59.8 million) compared with BHD 23.1 million (USD 61.4 million) in Q3 of 2018, which was largely attributed to a decline in market rates.
Other income saw an 4.6% drop in the third quarter of 2019, to BHD 6.2 million (USD 16.5 million), compared with BHD 6.5 million (USD 17.3 million) recorded in Q3 of 2018. Operating costs during the same quarter increased to BHD 11.1 million (USD 29.5 million) compared to BHD 10.1 million (USD 26.9 million) cited in the same period last year. Total comprehensive income also declined by 53.9% to BHD 19.1 million (USD 50.8 million) compared with BHD 41.4 million (USD 110.1 million) in the third quarter of last year, due to lower fair value revaluation on debt security instruments.
Earnings per share dropped by 8.3% to 11 fils (USD 29 cents) compared with 12 fils (USD 32 cents) in the third quarter of last year.
According to Jean-Christophe Durand, Chief Executive Officer of NBB: “Despite a challenging economic environment and a slight dip recorded in some areas of our Q3 financials, we have grown our revenues for the nine months by 7.2% compared to the same period in 2018. Additionally, disciplined cost management has enabled us to maintain a cost-to-income ratio of 34.4%, that stands amongst the best in the industry. Moving forward, we will continue to consolidate our efforts and push ahead with our business transformation across multiple verticals to drive positive results in Q4 and throughout 2020, with an overarching aim to increase our value across all our stakeholders.”
We would like to inform our shareholders that the full set of reviewed financial statements and the press release are available on the Bahrain Bourse’s website.
© Press Release 2019