NBB FY18 profits hit record BD 70 million

National Bank of Bahrain (NBB) yesterday announced a 14.8 per cent increase in full year 2018 net profit to a record BD70 million (US$186.1m), supported by new clients in all segments and diversifying the range of products and services offered. In 2017, net income was BD61.0m (US$162.3m). Based on the results, the board recommended a cash dividend of 25pc (2017: 25pc) or BD35.1m (US$93.4m).

The board also proposed to shareholders a bonus issue of BD14.0m (US$37.2m) at the rate of one additional share for every ten shares held (10pc). The bonus share issue is proposed to be made through utilisation of BD14.0m (US$37.2m) from the general reserve, which is subject to regulatory approvals. Earnings per share for the year increased from 44 fils (12 cents) in 2017 to 51 fils (13 cents) for the full year 2018.

Net interest income increased 19.4pc y-o-y to BD87.2m (US$231.9m), while other income increased by 7.5pc y-o-y to BD30.2m (US$80.3m) from the prior-year. [Excluding certain one-off income of BD3.3m (US$8.8m) in the previous year]. Operating profit before oneoffs rose 10.9pc y-o-y to BD75.6m (US$ 201.0m) for 2018 compared with BD68.2m (US$181.4m) for 2017. [excluding certain one-off income of BD3.3m (US$8.8m) in the previous year] Operating costs increased 26.7pc to BD41.8m (US$111.1m) compared to BD 33.0 m (US$87.7m) last year in line with ongoing investments in human capital and technology.

This resulted in an increase to the Bank’s cost-to-income ratio, which reached 35.6pc for the year. Average loans and advances increased by 8.7pc to BD1,272.3m (US$3,383.8m) compared with BD1,171.0m (US$3,114.4m) last year. Average customer deposits remained flat at BD2,107.8m (US$5,605.9m) in an overall flat market.