MANAMA: National Bank of Bahrain (NBB) has reported a 34 per cent increase in its net profit attributable to equity shareholders at BD20 million ($53.1m) for the second quarter ended June 30, 2022, compared to BD14.9m ($39.5m) in the same period of 2021.
The increase in net profit is mainly due to strong business fundamentals reflected through higher net interest income attributable to higher loan volumes across all the group’s key segments and higher other income from the Treasury and capital markets activities.
The 2022 results have also benefited from lower provisioning requirements than in the previous period.
Basic and diluted earnings per share increased to 10 fils for the second quarter of 2022 compared with 7 fils in the same period of 2021.
Total comprehensive income attributable to NBB’s equity shareholders for the quarter decreased to a loss of BD1.4m compared with a gain of BD11m in the same period of 2021.
The decrease is predominantly attributable to the temporary mark-to-market movements of the Bahrain sovereign bond portfolio and the equity investment book.
Operating income increased by 18pc in the second quarter of 2022 to BD44.2m compared with BD37.6m in the prior year period.
The increase is largely due to higher net interest income resulting from higher loan volumes, and higher income from the Treasury and capital markets activities.
NBB has reported an increase of 29pc in its net profit attributable to equity shareholders to BD39.4m for the six months ended 30 June 2022, compared to BD30.5m in the same period of 2021.
The increase in net profit is mainly due to strong business fundamentals reflected through higher net interest income attributable to higher loan volumes across all the group’s key segments and higher other income from the treasury and capital markets activities, and lower provisioning requirements in 2022 due to the significant precautionary buffers created in the previous years.
Basic and diluted earnings per share for the period increased to 19 fils compared with 15 fils in the same period of 2021.
Total comprehensive income attributable to equity shareholders increased by 46pc to BD39.5m compared with BD27.1m in 2021.
The increase is due to higher profitability reported in 2022 compared to the same period in 2021.
Operating income for the period increased by 14pc to BD86.7m compared with BD76.3m for the same period in 2021.
The increase was predominantly attributable to higher interest income from loans and higher income from the Treasury and capital markets activities.
The group’s total equity attributable to owners as of end-June 2022 at BD528.8m remained at the same level as BD527.8m reported as of end-2021.
The profits for the first half of 2022 were offset by a reduction in equity following the transfer of 20pc cash dividends.
The group’s total assets increased during the first half of 2022 by 7pc to BD4,833.2m compared to BD4,535.6m recorded as of end-2021.
The increase was predominantly related to the higher level of liquidity held on the balance sheet.
NBB chairman Farouk Almoayyed said: “We are proud of the overall growth the bank has demonstrated during the first half of this year, which was reflected in both the balance sheet and profitability.
The bank has also achieved significant non-financial milestones during the second quarter. NBB is leading the banking industry in the Kingdom in environmental conservation, as it remains committed to integrating sustainability across its business operations through the implementation of its 3-year sustainability roadmap and sustainability practices.
The bank continues to cement itself as an innovative financial hub with the latest digital solutions keeping ESG methodologies at the core of our practices with the aim of becoming global leaders in the industry.”
NBB chief executive Jean-Christophe Durand said: “We are pleased to announce a 33pc growth in the total consolidated net profit during the first half of 2022 compared to the same period in 2021, along with a rise in the group’s balance sheet and loans against the year-end levels, which demonstrate continued demand for NBB’s offerings in this competitive market.
The bank continued on its path of success through its various initiatives, partnerships and achievements over the course of the year and over this past quarter, and is committed to expanding its line-up of products and services as part of its brand promise to be closer to its customers.”
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