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Farouk Almoayyed and Jean-Christophe Durand (right)

NBB reports 34% jump in Q2 net profit to $53m

MANAMA, 12 days ago

National Bank of Bahrain (NBB) has reported a 34% increase in its net profit attributable to equity shareholders to BD20 million ($53.1 million) for the second quarter ended June 30, 2022, compared to BD14.9 million 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, NBB said. The 2022 results have also benefitted 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 BD1.4 million compared with a gain of BD11 million 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, the bank said.
 
Operating income increased by 18% in the second quarter of 2022 to BD44.2 million compared with BD37.6 million 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. 
 
Year-to-date
NBB has reported an increase of 29% in its net profit attributable to equity shareholders to BD39.4 million for the six months ended June 30, 2022, compared to BD30.5 million in the same period of 2021. 
 
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 NBB’s equity shareholders for the period increased by 46% to BD39.5 million compared with BD27.1 million in 2021. The increase is due to higher profitability reported in 2022 compared to the same period in 2021, NBB said.
 
Operating income for the period increased by 14% to BD86.7 million compared with BD76.3 million for the same period in 2021. 
 
Balance sheet
The group’s total equity attributable to owners as at June 30 at BD528.8 million remained at the same level as the BD527.8 million reported at 31 December 2021. The profits for the first half of 2022 were offset by a reduction in equity following the transfer of 20% cash dividends.
 
The group’s total assets increased during the first half of 2022 by 7% to BD4,833.2 million compared to BD4,535.6 million recorded on 31 December 2021. The increase was predominantly related to the higher level of liquidity held on the balance sheet, it said. 
 
NBB’s Chairman of the Board, Farouk Yousuf Khalil Almoayyed, stated: “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,” he said.
 
NBB’s CEO Jean-Christophe Durand said: “We are 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, 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. 
 
“In line with those endeavours, we have recently launched our latest digital solution, Points; a loyalty rewards platform for our various customers. We have also partnered with Exotic Cars to provide auto finance solutions to help our customers purchase their new vehicles as part of our auto loan product. Additionally, 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 developing NBB’s data, integration, digital banking and customer experience,” he said. – TradeArabia News Service
 



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