NBB announces double-digit growth in profits, declares record cash dividends

TDT | Manama                                                      

The Daily Tribune – www.newsofbahrain.com

The National Bank of Bahrain (NBB) disclosed an increase in profits for both the quarterly and year-end reports of 2023 compared to the previous year.

The primary drivers, as stated by the bank, were elevated earnings from loan portfolios, placements, and investment securities activities.

Additionally, the quarterly profit saw a boost from reduced provisioning requirements.

Furthermore, the Board of Directors has recommended a cash dividend of BHD 68.0 million, equivalent to 30% per share.

This encompasses the 10% interim dividends declared in August 2023.

Notably, the proposed dividend of BHD 68.0 million marks the highest cash dividends ever declared by the Group.

Fourth quarter

Fourth quarter net profit attributable to shareholders rose 16% to BHD 20.1 million (USD 53.3 million) from BHD 17.3 million (USD 45.9 million) in the year-ago quarter.

Earnings per share increased to 9 fils (USD 2 cents) from 8 fils (USD 2 cents) in the same quarter of 2022.

Total comprehensive income attributable to NBB’s shareholders decreased 60% to BHD 11.5 million (USD 30.5 million) from BHD 28.8 million (USD 76.4 million) in 2022.

The decrease is attributable to the mark-to-market movements of the Bank’s debt and equity securities.

Year-to-date

Full year 2023 net profit attributable to shareholders increased 16% to BHD 79.1 million (USD 209.8 million) from BHD 68.1 million (USD 180.6 million) in 2022.

The rise in net profit was a result of increased income from loans, placements, and investment securities, as well as lower provisions compared to 2022.

Earnings per share rose to 35 fils (USD 9 cents) from 30 fils (USD 8 cents) in 2022.

Total comprehensive income attributable to NBB’s shareholders decreased 4% to BHD 74.8 million (USD 198.4 million) from BHD 78.1 million (USD 207.2 million) in 2022.

The decrease is due to the mark-to-market movements of the Bank’s debt and equity securities. On the occasion, Farouk Yousuf Khalil Almoayyed, Chairman of NBB, said: “NBB has proudly closed the year with notable financial and non-financial achievements underpinned by our 6% growth in operating income, a reflection of the Group’s sustained growth across its core activities.

This was also supported by a 12% growth in our balance sheet resulting from the Group's effective management and ongoing demand for its elevated offerings and financial solutions.”

Usman Ahmed, Group CEO of NBB, commented: “We are pleased to announce record results for the full year ending 31 December 2023 with an attributable net profit of BHD 79.1 million, representing the Group’s highest profit levels and a growth of 16% compared to 2022.”