National Bank of Bahrain B.S.C (NBB) has reported a 34 percent increase in its net profit attributable to equity shareholders to BHD 20.0 million (USD 53.1 million) for the second quarter ended June 30, 2022, in contrast to BHD 14.9 million (USD 39.5 million) in the same period of 2021.
National Bank of Bahrain stated that the increase in net profit is primarily owing to strong business fundamentals indicated due to elevated net interest income attributable to higher loan volumes within all the Group’s key segments, and higher other income from the treasury and capital markets interests of the bank.
The 2022 results have also gained from lower provisioning requirements than in the preceding year.
Basic and diluted earnings per single share increased to ten fils for the second quarter of 2022 as compared to seven fils in the corresponding period of 2021.
Overall comprehensive income attributable to National Bank of Bahrain’s equity shareholders for the quarter reduced to a shortfall of BHD 1.4 million compared with a profit of BHD 11 million in the same period of 2021. The reduction is primarily attributable to the temporary mark-to-market movements of the Bahrain Sovereign bond portfolio and the equity investment book, NBB stated.
Operating income of the National Bank of Bahrain increased by 18 percent in the second quarter of 2022 to BHD 44.2 million compared with BHD 37.6 million in the 2021 cycle. The increase is due to higher net interest income resulting from higher income and higher loan volumes from the capital markets and treasury activities.
NBB has stated an increase of 29 percent in its net profit attributable to equity shareholders to BHD 39.4 million for the six months ended June 30, 2022, compared to BHD 30.5 million in the same period of 2021.
Basic and diluted earnings per single share for the period increased to nineteen fils compared with fifteen fils in the same period of 2021.
NBB stated that the total comprehensive income attributable to NBB’s equity shareholders for the period increased by 46 percent to BHD 39.5 million compared with BHD 27.1 million in 2021. The increase is due to higher profitability reported in 2022 compared to the same period in 2021.
Operating income for the year 2022 increased by 14 percent to BHD 86.7 million compared with BHD 76.3 million in 2021.
National Bank of Bahrain’s Balance sheet
NBB’s total equity attributable to proprietors as of June 30, 2022, was at BHD 528.8 million remaining at a similar point as the BHD 527.8 million stated on 31 December 2021. The earnings for the first half of 2022 were offset by a decrease in equity following the allocation of 20 percent cash dividends.
The group’s total assets increased during the first half of 2022 by 7 percent to BHD 4,833.2 million compared to BHD 4,535.6 million documented on 31 December 2021. The increase was primarily associated with the greater level of liquidity held on the balance sheet, the NBB stated.
Chairman of the Board, National Bank of Bahrain, Farouk Yousuf Khalil Almoayyed stated that the team is proud of the overall growth the bank has illustrated during the first half of this year, which was reflected in both the balance sheet and profitability. NBB has also attained significant non-financial milestones for the duration of the second quarter.
Almoayyed further stated that as NBB remains committed to integrating sustainability across its business operations all through the implementation of its 3-year sustainability roadmap and sustainability practices it is leading the banking business in the Kingdom of Bahrain in environmental conservation.
NBB’s CEO Jean-Christophe Durand stated that the bank was pleased to announce a 33% growth in the total consolidated net profit during the first half of 2022 compared to the same period in 2021. The growth in the group’s balance sheet and loans against the year-end levels determined sustained demand for NBB’s offerings in this competitive market.
Durand added that the bank continued its path of success through its various partnerships, initiatives, and achievements all throughout the year and over this past quarter, and is committed to expanding its line-up of products and services as part of its brand potential to be closer to its clientele.
In line with those endeavors, NBB has newly launched its recent digital solution – Points, a loyalty rewards platform for its numerous customers. NBB has also partnered with Exotic cars to offer auto finance solutions to assist their customers to purchase new vehicles as part of the company’s auto loan product. Furthermore, with the support of the Economic Development Board (EDB), NBB has signed a strategic agreement with Bring Global to enhance the bank’s digital transformation by advancing NBB’s digital banking, data, integration, and customer experience, Durand further stated.