NBB profit rises 8.5% to BD55 million

TDT | Manama

The Daily Tribune – www.newsofbahrain.com

National Bank of Bahrain reported a decrease of 20.6% in its net profit attributable to equity shareholders to BHD 8.1 million (USD 21.5 m) for the fourth quarter ended 31 December 2021, compared to BHD 10.2 m (USD 27.1 m) in the same period of 2020.

The decrease in net profit was predominantly attributable to lower income from non-core activities, namely recoveries received from previously written-off assets.

Basic and diluted earnings per share for the fourth quarter decreased to 4 fils (USD 1 cent) compared with 5 fils (USD 1 cents) in the same period of 2020.

Total comprehensive income attributable to NBB’s equity shareholders decreased by 71.8% to BHD 9.0 m (USD 23.9 m) compared with BHD 31.9 m (USD 84.6 m) in 2020.

The decrease is predominantly attributable to the mark-to market movements of the Bahrain Sovereign bond and equity portfolios. Operating income decreased by 10.1% to BHD 36.4 m (USD 96.6 m) compared with BHD 40.5 m (USD 107.4 m) in the prior year three month period. The decrease was predominantly attributable to lower income from non-core activities, namely recoveries received from previously written-off assets.

Full-year results 

NBB has reported a 1.1% increase in its net profit attributable to equity shareholders to BHD 53.9 m (USD 143.0 m) for the year ending 31 December 2021, compared to BHD 53.3 m (USD 141.4 m) in 2020. 

The corresponding consolidated net profit increased by 8.5% from BHD 50.7 m (USD 134.5 m) to BHD 55.0 m (USD 145.9 m) 

The increase was recorded despite the drop in the Group’s non-core other income and the precautionary contingent provisions taken in 2021, highlighting the resilience of NBB’s core activities in the form of net interest income and fees and commissions.

Basic and diluted earnings per share for the year at 29 fils (USD 8 cents) was at the same level as 2020. Total comprehensive income attributable to NBB’s equity shareholders decreased by 10.0% to BHD 45.1 m (USD 119.6 m) compared with BHD 50.1 m (USD 132.9 m) in 2020.

Other comprehensive income includes the mark-to-market movements during a year and hence include temporary fair value fluctuations on the Bahrain Sovereign bonds as well as movements in the market values of the equity portfolios.

Operating income increased by 2.0% to BHD 150.9 m (USD 400.3 m) compared with BHD 147.9 m (USD 392.3 m) in 2020.

Higher income from the Bank’s core sources of revenue, net interest income and fees and commission has outweighed the drop in the non-core income generated from recoveries from previously written-off assets.

Dividend

The recommended appropriations for the year 2021 will be submitted to the shareholders at the annual general meeting.

These appropriations include BHD 37.5 m for cash dividend at 20% and BHD 2.7 m for donations and contributions. The Board of Directors have also proposed a 1 for 10 bonus issue through the utilisation of BHD 18.7 m from retained earnings and the transfer of BHD 9.4 m from retained earnings to the statutory reserve.

“Fruitful year”

Farouk Yousuf Khalil Al Moayyed, Chairman of NBB said: “It has been a very fruitful year and we are pleased with this year’s financial results, presenting on overall positive growth for the year. Our net profits have demonstrated an increase from the same period in 2020, and the Group’s balance sheet remains strong by showing growth since the year-end.”

Jean-Christophe Durand, Chief Executive Officer of NBB, added, “NBB’s financial performance for the year has been positive, recording a consolidated net profit of BHD 55.0 m (USD 145.9 m) representing an 8.5% increase over 2020.

Excluding the impact of the disclosed noncore activities, the consolidated net profit increased 31.9% over 2020. 

2021 has also been a highlight year showcasing our commitment towards actualising our sustainability goals and instilling ESG across our community by launching a number of Group led initiatives.”