Total comprehensive income for the quarter increased by 16.4pc to BD31.9m compared with BD27.4m in 2019.
The increase is predominantly attributable to the mark-to-market movements of the Bahrain sovereign bond and equity portfolios.
Operating income increased by 35.7pc in the quarter to BD40.7m compared with BD30m in the prior year period.
Operating profit increased by 24.7pc to BD21.7m compared with BD17.4m in the same period of 2019, highlighting the resilience of NBB’s core activities during the pandemic.
For the year ended December 2020, NBB has reported a 28.2pc decrease in net profit to BD53.3m compared with BD74.2m in 2019.
Creation of precautionary provisions, lower margins, lower income from associate equity valuations and lower received dividends were all factors impacting the net profit in 2020 following the pandemic.
Basic and diluted earnings per share during the year decreased by 23.8pc to 32 fils compared with 42 fils in 2019.
Total comprehensive income decreased by 44.9pc to BD50.1m compared with BD91m in 2019.
Other comprehensive income includes the mark-to-market movements during a year and hence include temporary fair value fluctuations on the Bahrain sovereign bond and equity portfolios.
Operating income for the year increased by 22.4pc to BD148.9m compared with BD121.7m in 2019.
Operating profit at BD77.7m was up by 1.6pc from the 2019 level of BD76.5m.
Total equity decreased by 2.4pc to BD519.7m compared with BD532.3m recorded as of end-2019.
The decrease was due to the 2019 cash dividend payout, the reduction in the mark-to-market on Bahrain Sovereign securities classified as fair value through other comprehensive income as well as due to absorbing the cost of deferring loan repayments since March in relation to supporting customers during the first six months of the pandemic.
The group’s total assets increased by 36.5pc to BD4,361.4m compared with BD3,194.5m recorded on end-2019.
The increase was attributable to the consolidation of Bahrain Islamic Bank following the acquisition in January 2020 as well as strong demand for NBB loan products during 2020.
The recommended appropriations for the year 2020 include BD34.1m for cash dividend at 20pc and BD2.7m for donations and contributions.
The board have also proposed a one for 10 bonus issue through utilisation of BD17m from retained earnings and the transfer of BD8.5m from retained earnings to the statutory reserve.
NBB chairman Farouk Almoayyed said, “On behalf of the board, I am delighted to report that we are pleased with our overall full year financial results for the year 2020, which demonstrate positive growth despite the effects of the pandemic on the global economic environment.
“The NBB Group witnessed a strong first quarter following the acquisition of majority stake in Bahrain Islamic Bank, a strategic move that will result in synergies and a stronger positioning for both banks through enhanced revenue and shared costs. We did see some drop in the group’s results during the second and third quarters of 2020 which is expected, considering the impact of the pandemic on the economy.
“But, despite the challenging market conditions, our balance sheet and ratios have remained robust and will continue to safeguard the group whilst measures are kept in place for business continuity. I am pleased to say that the NBB Group has had a strong year thus far and exceeded expectations, and we will continue to move forward with our growth plans to reach new levels of banking excellence.”
Chief executive Jean-Christophe Durand added, “The group’s financial performance towards the end of the year has been resilient despite the unstable market conditions witnessed across the world, and which have impacted all banks and companies directly and indirectly. We are pleased to report a slight increase in our operational pre-provision profits, mainly due to our acquisition of a majority share of Bahrain Islamic Bank. These results come despite the drop in market rates which have had a significant impact on profit growth and margins.”
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