Manama: National Bank of Bahrain B.S.C. (NBB) has reported an increase of 8.8 per cent in its net profit attributable to equity shareholders to BD 14.9 million (USD 39.5 million) for the second quarter ended 30 June 2021, compared to BD 13.7 million (USD 36.3 million) in the same period of 2020.
The increase in net profit is predominantly due to higher net interest income due to higher loan volumes and following the active repricing of the Group’s balance sheet in line with recent interest rate trends, higher cross-sell FX activities and increased realised gains following the effective and active management of the investment securities book.
Basic and diluted earnings per share increased to 8 fils (USD 2 cents) for the second quarter of 2021 compared with 7 fils (USD 2 cents) in the same period of 2020.
Total comprehensive income attributable to NBB’s equity shareholders for the quarter decreased by 73.2% to BHD 11.0 million (USD 29.2 million) compared with BHD 41.1 million (USD 109.0 million) in the same period of 2020. The decrease is predominantly attributable to the mark-to-market movements of the Bahrain Sovereign bond portfolio.
Operating income increased by 10.8% in the second quarter of 2021 to BHD 37.9 million (USD 100.5 million) compared with BHD 34.2 million (USD 90.7 million) in the prior year period. The increase is largely due to higher net interest income due to higher loan volumes and following the active repricing of the Group’s balance sheet in line with recent interest rate trends, higher cross-sell FX activities and increased realised gains following the effective and active management of the investment securities book.
NBB has reported a 4.8% increase in its net profit attributable to equity shareholders to BHD 30.5 million (USD 80.9 million) for the six months ended 30 June 2021, compared to BHD 29.1 million (USD 77.2 million) in the same period of 2020. The increase was attributable to the increased cross-selling activities and effective management of the investment securities book.
Basic and diluted earnings per share at 16 fils (USD 4 cents) during the period remained at the same level of the same period of 2020.
Total comprehensive income attributable to NBB’s equity shareholders for the period increased to BHD 27.1 million (USD 71.9 million) compared with BHD 1.8 million (USD 4.8 million) in the same period of 2020. The increase is predominantly attributable to the mark-to-market movements of the Bahrain Sovereign bond portfolio.
Operating income for the period increased by 3.1% to BHD 76.8 million (USD 203.7 million) compared with BHD 74.5 million (USD 197.6 million) in the prior year period, due to the Group’s increased cross-selling and investment portfolio management activities.
The Group’s total equity attributable to owners decreased by 1.6% to BHD 511.2 million (USD 1,356.0 million) compared with BHD 519.7 million (USD 1,378.5 million) recorded as of 31 December 2020. The decrease followed the distribution of the 2020 cash dividends, slightly offset by the profits recorded during the first half of 2021.
The Group’s total assets increased by 6.7% to BHD 4,655.5 million (USD 12,348.8 million) compared to BHD 4,361.4 million (USD 11,568.7 million) recorded on 31 December 2020. The increase was attributable to higher placements and a continued strong demand for NBB loan products.
“We are very pleased with our overall financial results for the second quarter of the year, which demonstrate positive growth despite the effects of the pandemic on the global economic environment,” Farouk Yousuf Khalil Al Moayyed, Chairman of NBB, said.
“Our net profits have shown an increase from the same period in 2020, as the Group’s balance sheet remains strong. The acquisition of majority stake in Bahrain Islamic Bank (BisB) in 2020, continues to be a strategic move resulting in synergies and a stronger positioning for both banks through enhanced revenue and shared costs relating to new technology enhancements. The integration has served to highlight a strong liquid balance sheet to protect both banks, while further enabling BisB to capitalise on NBB’s resources and gain wider market access and enhanced product delivery, as demonstrated by the recent tier 1 debt issuance.”
“Overall, I am pleased that the NBB Group is performing well this quarter thus far, and we will continue to move forward with our growth plans to reach new levels of banking excellence.”
“NBB’s financial performance during the second quarter of the year has been strong, with operating profit for the second quarter ended 30 June 2021 being 12.4% higher than the same period in 2020, and loan and deposit volumes increasing by 4% and 5% respectively compared to the yearend level,” Jean-Christophe Durand, Chief Executive Officer of NBB, added.
“The growth was recorded by the Group despite the unstable market conditions witnessed not only across the Kingdom, but also the world, and which have impacted all banks and companies directly or indirectly. Our strong positioning in the market enabled us to expand our product and services portfolio by strengthening our partnerships, both locally and regionally, as we continue to form solid relationships to enhance our performance. The second quarter saw NBB maintain its collaboration with the Ministry of Housing and Eskan Bank, extending its mortgage loan repayment period from 25 years to 30 years for customers benefiting from Mazaya and Joint Housing financing schemes. The Bank has additionally introduced exclusive offers on the ‘Danaat Al Baraka’ project, also applicable to Mazaya scheme beneficiaries as part of NBB’s goal to provide housing solutions across the Kingdom, in line with our promise to remain closer to our customers.”
“As a result of our dedication to the Bank’s digital transformation and our efforts to increase our digital operations, NBB has won the ‘Best Mobile Banking Application’ Award by Business Tabloid 2021, marking our progress into becoming a more digitally-reliant national giant. This has been a period of change across the Kingdom, and we look forward to further growth and accomplishments which come as a result of our commitment to the nation, to our people and to customer excellence,” he added.
