15% rise in NBB net profit attributable to the shareholders

National Bank of Bahrain B.S.C. (NBB) has reported a 15% increase in its net profit attributable to shareholders to BHD 22.4 million (USD 59.4 million) for the first quarter ended 31 March 2023, compared to BHD 19.4 million (USD 51.5 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 (USD 3 cents) for the first quarter of 2023 compared with 9 fils (USD 2 cent) in the same quarter of 2022. 

Total comprehensive income attributable to NBB’s shareholders for the quarter decreased by 62% to BHD 15.4 million (USD 40.8 million) compared with BHD 40.9 million (USD 108.5 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% as at 31 March 2023 to BHD 529.1 million (USD 1,403.4 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.

The Group’s total assets increased by 1% during the quarter to BHD 4,823.0 million (USD 12,793.1 million) compared to BHD 4,785.3 million (USD 12,693.1 million) recorded on 31 December 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.

Commentary

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 BHD 23.0 million demonstrating a 12% growth compared to the same period in 2022. 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.”

NBB’s Group Chief Executive Officer, Usman Ahmed, said: “We are proud to have recorded a 25% growth in operating profit, which has allowed the Group to increase our 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 NBB’s 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 uplift 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.”

We would like to inform our shareholders that the reviewed condensed consolidated interim financial statements and the press release are available on the Bahrain Bourse website.

National Bank of Bahrain B.S.C. shares are traded on Bahrain Bourse under the trading code: NBB.