NBB Net Profits Increase 11.3 Percent to BD55.0 Million For the First Nine Months of 2018
National Bank of Bahrain delivered strong financial results and continued growth for the first nine months of 2018 marked by an 11.3% rise in net profit, which reached BD 55.0 million (US$ 146.3 million) compared to BD 49.4 million (US$ 131.4 million) for the corresponding period of 2017. Strengthened results were supported by more prudent asset liabilities management. For the third quarter of 2018, the Bank recorded a net profit of BD 18.2 million (US$ 48.4 million) a growth of 2.8% compared to BD 17.7 million (US$ 47.1 million) in the prior-year period.
Other financial highlights for 2018:
- Operating profit rose by 9.7% y-o-y to BD 57.5 million (US$ 152.9 million) compared with BD 52.4 million (US$ 139.4 million) in the prior-year period. [excluding certain one-off income of BD 3.3 million (US$ 8.8 million) in the previous year]. For the third quarter of 2018, it rose by 9.6% to BD 19.5 million (US$ 51.9 million) compared with BD 17.8 million (US$ 47.3 million) in third quarter of 2017.
- Net interest income increased 18.9% y-o-y to BD 64.2 million (US$ 170.7 million) compared with BD 54.0 million (US$ 143.6 million) in the prior-year period. For the third quarter of 2018, it increased 20.9% to BD 23.1 million (US$ 61.4 million) compared with BD 19.1 million (US$ 50.8 million) in third quarter of 2017.
- Other income increased by 8% y-o-y to BD 24.3 million (US$ 64.6 million) compared with BD 22.5 million (US$ 59.8 million) in the prior-year period. [excluding certain one-off income of BD 3.3 million (US$ 8.8 million) in the previous year]. For the third quarter of 2018, it decreased by 8.5% to BD 6.5 million (US$ 17.3 million) compared with BD 7.1 million (US$ 18.9 million) in third quarter of 2017.
- Operating costs were up to BD 31.0 million (US$ 82.4 million) compared to BD 24.1 million (US$ 64.1 million), an increase of 28.6% which is in line with the ongoing investments in human capital and technology to support the Bank’s transformation strategy. That resulted in an increase of cost-to- income ratio to 35.0%. For the third quarter of 2018, operating costs were BD 10.1 million (US$ 26.9 million) compared with BD 8.4 million (US$ 22.3 million) in third quarter of 2017.
- Total earning assets stays consistent at BD 2,848.1 million (US$ 7,574.7 million) compared to BD 2,865.7million (US$ 7,621.5 million).
- Loans and advances increased 2.2% to BD 1,172.8 million (US$ 3,119.1 million).
- Customer deposits stood at BD 2,082.5 (US$ 5,538.6 million) compared to BD 2,074.5 million (US$ 5,517.3 million).
- Total equity grew by 7.6% to BD 465.3 million (US$ 1,237.5 million).
- Earnings per share during the period increased from 35.8 fils (US$ 10 cents) to 39.8 fils (US$ 11 cents).
Commenting on the Bank’s performance, Mr. Farouk Yousuf Khalil Almoayyed, Chairman of NBB, said, “On behalf of the Board, I’m pleased to announce another strong set of results from NBB for the first nine months of 2018. Once again, the Bank has achieved solid double-digit growth in profitability whilst simultaneously increasing investments in human capital and technology, the cornerstones of the Bank’s transformation strategy aimed at delivering sustainable growth for the Bank, our shareholders and Bahrain’s economy in which we are a key development partner. Advancements for period also reflect NBB’s success and commitment to stepping up participation in the local and regional markets. This includes enhanced support for SMEs and greater funding for key national and multinational corporates plus the development of new products and services.”
Mr. Jean-Christophe Durand, Chief Executive Officer of NBB, added, “We are pleased with the continued strengthening of our results and profitability quarter after quarter as a result of the Bank’s strategy of expansion and diversification. For the nine month period, we reported a solid rise of 9.7% (excluding certain one-off income) in operating profit backed by increased income generation from key areas of the business. Our digital transformation also continued in line with broader efforts to create greater long-term efficiencies and value for the Bank, our shareholders and customers. Having rolled out our business online banking in the prior quarter, we continued to onboard business and corporate clients providing them with the benefits of our enhanced capabilities and services while working to further innovate and digitalise the business. We enter the fourth quarter with strong momentum and look forward to recording even further operational progress and financial gains during the remainder of 2018.”
Financial Summary (30 September) (in Millions)
Loans and advances
Total Earning Assets (Treasury Bills, Placements, Loans & Advances, Investment Securities and Investment in associates)
Earnings per share
National Bank of Bahrain
We are Bahrain’s first locally owned bank. Every day, across the years, we develop our capabilities, using our expertise to better serve those who put their trust in us. Regionally present and dedicated to our local community, our history is Bahrain’s.
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