Announcing the results for the six months period ended June 30, 2024, NBB said the increase in H1 net profit was mainly due to higher net interest income driven by a stronger average balance sheet compared to last year and higher gains from investment securities and treasury activities. 

 

The earnings per share increased to 21 fils ($6 cents) for the period compared with 18 fils ($5 cents) for the same period in 2023, it stated. 

 

Total comprehensive income attributable to NBB’s shareholders for the period increased by 20% to BD51.4 million ($136.3 million) compared with 42.8 million ($113.5 million) in 2023. The increase is mainly attributable to the positive mark-to-market movements of the equity portfolio and to a higher consolidated net profit, said NBB in a statement.

 

On its Q2 performance, NBB said its net profit attributable to shareholders grew 4% to BD19.1 million ($50.7 million), compared to BD18.4 million ($48.8 million) in 2023. 

 

This increase was mainly driven by balance sheet growth and, higher gains from investment securities and treasury activities, it stated.

 

The bank's Q2 earnings per share stood at 8 fils ($2 cents) in line with the same period in 2023. 

 

Total comprehensive income attributable to NBB’s shareholders for the quarter decreased by 29% to BD19.4 million ($51.5 million) compared to BD27.4 million ($72.7 million) in 2023. The decrease is attributable to the negative mark-to-market movements of the equity and bond portfolios, it stated. 

 

NBB Group’s total equity attributable to shareholders increased by 1% as of 30 June 2024 to BD571.4 million ($1.51 billion) compared to BD565 million ($1.49 billion) reported as of 31 December 2023. 

 

The attributable profits and the positive movements in the fair value reserve for the period were largely offset by the payment of the 2023 cash dividends. 

 

The Bahraini bank said the group’s total assets increased by 3% during the period to BD5.51 billion ($14.6 billion) compared to BD5.37 billion ($14.2 billion) recorded on 31 December 2023. 

 

This increase was mainly due to loans and advances registering a 7% growth from 31 December 2023, it added. 

 

Impressed with the Group’s strong performance, the NBB Board of Directors has proposed an interim cash dividend of BD22.7 million ($60 million), which represents a 10% per share dividend. The payment is subject to the approval of the regulatory authorities.

 

On the solid performance, Group Chairperson Hala Yateem said: "NBB has continued to achieve double-digit growth in the first half of 2024 with an attributable profit of BD46.6 million, representing a 14% increase compared to the same period in 2023. The strong profitability is supported by a robust balance sheet, with total assets reaching BD5.5 billion, a 3% increase from the year-end level."

 

"This performance has resulted in an annualised average return on equity of 16.4%, surpassing the 14.7% and 14.2% recorded on 30 June and 31 December 2023 respectively, highlighting NBB's efforts to continually enhance the value it delivers to shareholders. We received our third successive title for the ‘Best Retail Bank in Bahrain’ at the MEED MENA Banking Excellence Awards," stated Yateem. 

 

According to her, the bank has also continued its investments in various community, health, educational, and environmental initiatives, resulting in its third regional Euromoney award for the ‘Middle East’s Best Bank for Corporate Responsibility’ and consecutive country accolades for ‘Best Bank in Bahrain for Corporate Responsibility’ and ‘Best Bank in Bahrain for ESG.’ 

 

"Building on this foundation, NBB is poised for further growth in the remainder of 2024 as we continue to contribute to the progress of the Kingdom’s financial sector and reinforce our position as the region’s leading Bank in corporate responsibility," she added.

 

Group CEO Usman Ahmed said: "NBB Group has achieved strong growth in its core business in the first half of 2024, with operating profits of BD51.7 million representing an 11% increase over the same period in 2023."

 

"This growth was underpinned by organic expansion of our business across Bahrain, UAE and the Kingdom of Saudi Arabia, and represents the Bank's strategic focus on its core geographies and customer segments, with loans and customer deposits increasing by 7% and 4% respectively from the year-end level. In addition to our client business, our professional markets activities also continue to deliver exceptional returns," stated Ahmed. 

 

"Continuing with our commitment to client-centric innovation, we launched NBB GO during the second quarter, a cutting-edge SoftPOS application that simplifies and redefines the mobile payment experience for small businesses. As we move forward, NBB remains focused on further expanding its scale and profitability through serving its clients and driving innovation, while also creating positive social impact," he added.-TradeArabia News Service