NBB posts significant uplift in 2022 net profit

TDT | Manama                      

The Daily Tribune – www.newsofbahrain.com   

Helped by higher income from a larger portfolio of loans and securities, The National Bank of Bahrain said its profits jumped, which was also positively impacted by increased market rates and lower provision requirements.

The group also said it will propose a 37% increased cash dividend for the year 2022 to the shareholders at the annual general meeting.

The appropriations will include the largest cash dividend to date at BHD 51.5 million which represents a 25% per share dividend.

In addition, the Board of Directors has also proposed a 1 for 10 bonus issue.

Fourth quarter results

National Bank of Bahrain reported a 114% increase in its net profit attributable to shareholders to BHD 17.3 m (USD 45.9 m) for the fourth quarter to 31 December 2022, compared to BHD 8.1 m (USD 21.5 m) in the same period of 2021.

The increase in net profit is mainly due to higher income from a larger portfolio of loans and securities.

The increased market rates and lower provision requirements in the fourth quarter also had positive impacts.

Earnings per share doubled to 8 fils (USD 2 cents) for the fourth quarter of 2022 compared with 4 fils (USD 1 cent) in the same quarter of 2021.

Total comprehensive income attributable to NBB’s shareholders for the quarter increased by 220% to BHD 28.8 m (USD 76.4 m) compared with BHD 9.0 m (USD 23.9 m) in 2021.

The increase is predominantly attributable to the mark-to-market movements of the investment securities portfolio and higher profitability in the fourth quarter of 2022.

Full year results

Full year net profit attributable to shareholders increased 26% to BHD 68.1 m (USD 180.6 m), compared to BHD 53.9 m (USD 143.0 m) in 2021.

This translates into a 29% growth in annual consolidated net profit for the Group.

The increase in net profit is mainly due to strong business fundamentals reflected through higher net interest income attributable to a larger volume of loans and investment securities, at increasing rates.

Treasury and capital markets activities and lower provision requirements compared to the prior year also significantly contributed to the increase in profitability.

Earnings per share increased to 33 fils (USD 9 cents) compared with 26 fils (USD 7 cents) in 2021.

Total comprehensive income attributable to NBB’s shareholders for the year increased by 73% to BHD 78.1 m (USD 207.2 m) compared with BHD 45.1 m (USD 119.6 m) in 2021.

The increase is predominantly attributable to the mark-to-market movements of the investment securities and to higher profitability reported in 2022 compared to 2021.

NBB’s Chairman of the Board, Farouk Yousuf Khalil Almoayyed, stated: “In the year ahead, NBB will continue to invest in enriching the lives of generations by capitalising on growth, development and investment opportunities within the industry and the wider community.”

NBB’s Group Chief Executive Officer, Usman Ahmed, said: “We are pleased to announce a 114% growth in attributable net profit during the quarter ended 31 December 2022 compared to the same period in 2021.

This was accomplished alongside a 5% growth across the Group’s loan portfolios during the year, as well as a 4% growth in customer deposits.

The metrics demonstrate the continued attraction of NBB’s offerings in this competitive market in both the retail and corporate segments.”