National Bank of Bahrain (NBB) has reported a net profit attributable to shareholders of BD22.5 million ($59.7m) for the second quarter ended June 30, 2026, representing a record second quarter profit and 16 per cent increase from BD19.4m ($51.5m) reported in the second quarter of 2025.
The strong growth was driven primarily by higher net interest income, underscoring the resilience of the group’s balance sheet and the strength of its core banking business.
Earnings per share increased to 10 fils (3 cents) for the second quarter of 2026, compared to 9 fils (2 cents) in 2025.
During the quarter, the group reported a total comprehensive income attributable to NBB’s shareholders of BD37.3m ($98.9m) compared to BD13.9m ($36.9m) in the same period of 2025, representing a growth of 168pc.
The increase was primarily driven by favourable mark-to-market movements in the bond portfolio during the second quarter, as market conditions stabilised following the geopolitical-related volatility experienced in the first quarter.
Year-to-date
NBB reported a net profit attributable to shareholders of BD43.1m ($114.3m) for the six months ended June 30, 2026 compared to BD47.5m ($126m) in the same period in 2025.
The reported profit was 9pc lower than the prior year, which included a one-off gain of BD7.7m (BD9.7m before non-controlling interest deduction) from the sale of an investment property in NBB’s subsidiary, Bahrain Islamic Bank, and lower merger-related expenses.
On a normalised basis, excluding significant one-off items, the attributable profit increased by 10pc compared with BD39m ($103.4m) in the corresponding period of 2025, reflecting the strength of the group’s underlying operating performance.
Earnings per share of 19 fils (5 cents) for the period is lower than 21 fils (6 cents) in the same period of 2025, or 2 fils higher than the normalised 2025 earnings per share of 17 fils (5 cents).
Total comprehensive income attributable to NBB’s shareholders for the six-month period decreased by 29pc to BD24.3m ($64.5m) compared with BD34.3m ($91m) in 2025.
The decrease is attributable to the negative mark-to-market movements of the debt portfolio resulting from the geopolitical situation.
Balance sheet
The group’s total equity attributable to shareholders stood at BD550.6m ($1,460.5m) as of June 30, 2026, a reduction of 6pc compared to
BD585m ($1,551.7m) as of December 31, 2025.
The movement primarily reflects the distribution of BD56.4m in year-end cash dividends for 2025, approved by shareholders at the annual general meeting during the first quarter, underscoring the group’s continued commitment to delivering strong and sustainable shareholder returns.
Equity was also impacted by temporary negative mark-to-market movements in the bond portfolio arising from geopolitical-related market volatility.
The group’s total assets increased by 2pc during the period to BD6,372.1m ($16,902.1m) compared to BD6,276.6m ($16,648.8m) recorded on December 31, 2025.
The increase was mainly due to loans and advances registering a growth of 6pc from December 2025, accompanied with a 12pc increase in customer deposits.
Interim dividends
Following the group’s strong performance, the board of directors proposed to maintain an interim cash dividend of 10pc of share nominal value, amounting to BD22.6m and equivalent to 10 fils per share. The payment is subject to regulatory approval.
Commentary
On the occasion, NBB chairperson Hala Ali Husain Yateem said: “The second quarter of 2026 demonstrated the resilience and stability of NBB. Against a backdrop of heightened regional geopolitical uncertainty and significant volatility across global financial markets, the group delivered a 16pc increase in attributable profit, reflecting the strength of our diversified business model, disciplined risk management and the confidence our customers continue to place in us.
“These results reaffirm NBB’s ability to continue supporting Bahrain’s economy while consistently delivering sustainable value to our shareholders. They also demonstrate the strength of the bank’s balance sheet, prudent capital management and the quality of our underlying earnings, all of which have enabled the board to declare an interim cash dividend of 10pc.
“Throughout this period, our priorities remained on safeguarding our customers, protecting the bank’s financial strength, supporting our employees and ensuring uninterrupted service despite a challenging regional operating environment. The professionalism and dedication of our people once again demonstrated the resilience of our institution.
“Beyond our financial performance, we continued investing in the future of Bahrain through initiatives that develop national talent, expand opportunities for young people and strengthen our contribution to the communities we serve. During the quarter, NBB was also recognised as Bahrain’s Best Retail Bank by both Euromoney and the MEED MENA Banking Excellence Awards, reflecting our continued commitment to delivering an exceptional banking experience.
“While geopolitical developments continue to create uncertainty across the region, NBB enters the second half of the year from a position of strength. Our strategy remains unchanged: maintaining disciplined growth, preserving a strong balance sheet, managing risk prudently and creating sustainable long-term value for our shareholders while continuing to support Bahrain and its economic aspirations.”
NBB Group chief executive officer Usman Ahmed commented: “NBB registered a growth of 31pc in operating profit during the second quarter of 2026, a reflection of the group’s sustained momentum across its regional business and the effectiveness of its client-focused banking strategy. The growth was also supported by a solid expansion of the group’s balance sheet, with total assets increasing by 2pc from the year-end levels, loans and advances rising by 6pc, and customer deposits growing by 12pc.
During the second quarter, we also announced 124 employee promotions across the Group, demonstrating our continuous investment in our talent. Furthermore, our standing in the kingdom’s significant capital market initiatives was reaffirmed as we served as joint lead manager and bookrunner in the issuance of Bahrain’s $1 billion, 10-year international bond – a transaction that reflects the enduring confidence investors place in Bahrain’s economic direction. We also launched UK property finance solutions for our international clients, extending the scope of what NBB can deliver beyond its home market. For the remainder of the year, our focus remains on client service excellence and disciplined delivery across every geography and business of the group.”
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