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National Bank of Bahrain (NBB) has reported a net profit attributable to shareholders of BD20.6 million ($54.6m) for the first quarter ended March 31, 2026, representing a 27 per cent decrease from BD28.1m ($74.5m) reported in the first quarter of 2025 or a 2pc increase from the normalised 2025 profit of BD20.2m ($53.6m).
Normalised profit excludes a large one-off gain of BD7.5m (BD9.5m before non-controlling interest deduction) from the sale of an investment property in NBB’s subsidiary, Bahrain Islamic Bank, and also excludes higher merger related expenses in 2026.
The 2026 results were also impacted by lower gains recorded from Treasury-related activities during the first quarter due to the prevailing geopolitical environment and the 2026 profitability also accounts for additional ECL provisions of BD4.5m (BD5.6m before non-controlling interest deduction) taken on a precautionary basis due to the regional conflict.
Earnings per share decreased to 9 fils for the first quarter of 2026, compared to 12 fils in 2025. The normalised 2025 earnings per share is 9 fils, at the same level as 2026.
During the quarter, the group reported a total comprehensive unrealised loss attributable to NBB’s shareholders of BD13m compared to a total comprehensive income of BD20.4m in the same period of 2025. The decrease is mainly attributable to the mark-to-market movements of the bond portfolio resulting from the geopolitical situation.
The group’s total equity attributable to shareholders decreased by 12pc to BD513.6m as of March 31 2026, compared to BD585m as of December 31, 2025. This decrease follows the approval and declaration of BD56.4m in year-end cash dividends for 2025 at the annual general meeting held during the first quarter and reflects our continued commitment to deliver strong annual dividends to shareholders. The reduction in equity was also driven by the negative mark-to-market movements of the bond portfolio, due to the geopolitical situation.
The group’s total assets increased by 5pc during the period to BD6,618.6m compared to BD6,276.6m recorded on December 31, 2025. The increase was mainly due to loans and advances registering a growth of 5pc from December 2025, accompanied with a 7pc increase in customer deposits.
On the occasion, NBB chairperson Hala Yateem said: “NBB entered 2026 with continued focus on resilience and long-term value creation. While the first quarter unfolded against one of the most challenging regional backdrops in recent memory, it reaffirmed the strength of Bahrain’s financial sector and NBB’s institutional preparedness, facilitated by a coordinated national response.
“Guided by the directives of the esteemed leadership of Bahrain, our financial sector maintained stability during a period of heightened uncertainty, enabling institutions such as NBB to continue serving customers with full operational continuity. The bank remained firmly focused on its strategic priorities, demonstrating execution focus through growth in its core customer loans and deposits.
“With a strong start to the year, we remain guided by our institutional mandate to deliver consistently positive outcomes for our shareholders, clients, and the broader economy.”
NBB group chief executive officer Usman Ahmed said: “Our financial performance in Q1 2026 was underpinned by balance sheet expansion across all three core markets of Bahrain, UAE and Saudi Arabia, with total assets growing by 5pc relative to year-end levels. Loans and advances increased by 5pc and customer deposits rose by 7pc, reflecting continued growth across our core banking and client-facing activities and being the main driver of the 6pc growth in net interest income.”
He added: “Throughout the recent regional conflict, our teams swiftly activated business continuity protocols across our branches and digital infrastructure and served clients with incredible national pride and dedication, ensuring our clients experienced no disruption to essential banking services. The decisiveness through which the government of Bahrain directed response measures during this period enabled institutions across the kingdom to operate effectively.
Mr Ahmed further said: “In Q1, 2026, we also revamped our digital banking application with a refreshed user experience and new features. We also enhanced our corporate proposition across wealth management, private banking, fintech partnerships, and digital asset services, while launching escrow account services in the United Arab Emirates and capturing emerging opportunities in Saudi Arabia.
“Additionally, NBB continued its drive to groom and promote local talent, further reinforcing the professional pipeline that will drive our growth in the years ahead. In parallel, we have continued to embed ESG practices across our organisation, with targeted initiatives to manage our environmental impact.
“Looking ahead, we remain focused on continuing our journey to bring the very best of global and local banking products and services, being a trusted partner for our customers, and executing on our strategic priorities to deliver sustained progress across NBB Group.”
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