National Bank of Bahrain (NBB), a leading financial institution in the kingdom, has reported a 16% rise in second-quarter net profit attributable to shareholders driven mainly by higher net interest income.
Announcing the Q2 results, NBB said the net profit rose to BD22.5 million ($59.7 million) for the three months ended June 30, from BD19.4 million a year earlier, marking a record second-quarter profit for the bank. Earnings per share increased to 10 fils from 9 fils in the same period last year, stated the leading Bahraini bank in a statement.
Total comprehensive income attributable to NBB shareholders surged 168% to BD37.3 million, compared with BD13.9 million a year earlier.
The increase was primarily driven by favourable mark-to-market movements in the bank's bond portfolio as market conditions stabilised following volatility linked to geopolitical developments in the first quarter, it stated.
Higher net interest income also supported the bank's quarterly performance, reflecting growth in its core banking business, it added.
On the H1 performance, NBB said its net profit attributable to shareholders was down 9% mainly due to a one-off gain recorded in the same period last year from the sale of an investment property.
Net profit fell to BD43.1 million ($114.3 million) for the six months ended June 30, from BD47.5 million a year earlier.
The bank said last year's results included a BD7.7 million gain from the sale of an investment property held by its subsidiary Bahrain Islamic Bank, as well as lower merger-related expenses.
Impressed with the results, the NBB board proposed an interim cash dividend of 10% of the share's nominal value, equivalent to 10 fils per share and a total of BD22.6 million. The dividend remains subject to regulatory approval.
Excluding significant one-off items, NBB's attributable profit rose 10% to BD43.1 million from normalised profit of BD39 million a year earlier, reflecting stronger underlying operating performance, it stated.
Earnings per share stood at 19 fils, compared with 21 fils a year earlier and 17 fils on a normalised basis in 2025.
According to NBB, its total assets rose 2% to BD6.37 billion at the end of June from 6.28 billion dinars at the end of 2025. Loans and advances increased 6% from year-end, while customer deposits rose 12%.
Total equity attributable to shareholders fell 6% to BD550.6 million from BD585 million at the end of 2025, mainly reflecting the distribution of BD56.4 million in cash dividends for 2025. Equity was also affected by temporary negative mark-to-market movements in the bond portfolio.
On the robust performance, NBB Chairperson Hala Ali Husain Yateem said: "The Q2 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 16% 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 10%," she stated.
"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," noted Yateem.
"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," she added.
Group CEO Usman Ahmed said: "NBB registered a growth of 31% in operating profit during the second quarter, 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 2% from the year-end levels, loans and advances rising by 6%, and customer deposits growing by 12%. During the second quarter, we also announced 124 employee promotions across the Group, demonstrating our continuous investment in our talent," stated Ahmed.
"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," he stated.
"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," he added.-TradeArabia News Service
