NBB H1 net profit rises 4%

TDT | Manama       

The Daily Tribune – www.newsofbahrain.com

The National Bank of Bahrain (NBB) announced profits for the second quarter and first half of 2023, based on which the Board of Directors proposed an interim cash dividend of BHD 22.7 million, which represents a 10% per share dividend.

Second quarter

For the second quarter, NBB reported an 8% decrease in its net profit attributable to shareholders to BHD 18.4 million (USD 48.8 million), compared to BHD 20.0 million (USD 53.1 million) in the same period of 2022.

The difference in net profit is predominantly due to lower realised gains from the sale of investment securities in 2023. Excluding the difference in gains in both years, the second quarter’s attributable net profit would register a growth of 23%.

Earnings per share marginally decreased to 8 fils (USD 2 cents) compared with 9 fils (USD 2 cents) in the same quarter of 2022. Total comprehensive income attributable to NBB’s shareholders increased to BHD 27.4 million (USD 72.7 million), compared with a loss of BHD 1.4 million (USD 3.7 million) in 2022.

The increase is mainly attributable to the mark-to-market movements of the Bank’s investment portfolio.

Year-to-date

NBB has reported a 4% increase in its net profit attributable to shareholders to BHD 40.8 million (USD 108.2 million) for the six months ended June 30, 2023, compared to BHD 39.4 million (USD 104.5 million) in the same period of 2022.

The rise in net profit was driven by higher income from loans and investment securities. Earnings per share increased to 18 fils (USD 5 cents) compared with 17 fils (USD 5 cents) in the same period of 2022.

Total comprehensive income attributable to NBB’s shareholders increased by 8% to BHD 42.8 million (USD 113.5 million) compared with BHD 39.5 million (USD 104.8 million) in 2022.

The increase is mainly due to the mark-to-market of the Bank’s investment portfolio. Chairman Farouk Yousuf Khalil Almoayyed stated: "The Bank has recorded a 7% and 2% increase in operating income and operating profit, respectively.

This is a testament to the strength of the Bank’s diversified revenue sources and its ability to efficiently manage its balance sheet.

The growth in operating profitability is also a reflection of the Group’s strong underlying core business activities, highlighting the Bank’s continued ability to generate returns for its shareholders." Chief Executive Officer, Usman Ahmed, said: "We are pleased to announce an attributable net profit of BHD 40.8 million for the first half of 2023, which represents an increase of 4% compared to 2022. Our year-to-date success has not just been limited to financial outcomes."