Bahrain - National Bank of Bahrain (NBB) has reported a four per cent increase in net profit attributable to shareholders reaching BD19.1 million ($50.7m) for the second quarter ended June 30, 2024, compared to BD18.4m ($48.8m) in the same period of 2023.

The increase is mainly driven by balance sheet growth and higher gains from investment securities and treasury activities.

Earnings per share at 8 fils (USD 2 cents) for the second quarter of 2024 is in line with the same period in 2023.

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

NBB has reported a 14pc increase in its net profit attributable to the shareholders for the six months ended June 30, 2024, recording BD46.6m ($123.6m) compared to BD40.8m ($108.2m) for the same period of 2023.

The increase in net profit is mainly due to higher net interest income driven by a stronger average balance sheet compared to the first half of 2023, and higher gains from investment securities and treasury activities.

Earnings per share increased to 21 fils (6 cents) for the period compared with 18 fils (5 cents) for the same period in 2023.

Total comprehensive income attributable to NBB’s shareholders for the period increased by 20pc to BD51.4m ($136.3m) compared with BD42.8m ($113.5m) 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.

The group’s total equity attributable to shareholders increased by 1pc as of June 30, 2024 to BD571.4m ($1,515.6m) compared to BD565m ($1,498.7m) reported as of December 31, 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 group’s total assets increased by 3pc during the period to BD5,511.5m ($14,619.4m) compared to BD5,372.5m ($14,250.7m) recorded on December 31, 2023.

The increase was mainly due to loans and advances registering a 7pc growth from December 31, 2023.

Following the group’s strong performance, the board of directors proposed an interim cash dividend of BD22.7m, which represents a 10pc per share dividend. The payment is subject to the approval of the regulatory authorities.

On the group’s quarterly performance, Hala Yateem, chairwoman of NBB, said: “NBB has continued to achieve double-digit growth in the first half of 2024 with an attributable profit of BD46.6m, representing a 14pc 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 3pc increase from the year-end level. This performance has resulted in an annualised average return on equity of 16.4pc, surpassing the 14.7pc and 14.2pc recorded on June 30 and December 31, 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. The bank has also continued its investments in various community, health, educational, and environmental initiatives, resulting in our 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.”

NBB Group chief executive Usman Ahmed commented: “NBB Group has achieved strong growth in its core business in the first half of 2024, with operating profits of BD51.7m representing an 11pc increase over the same period in 2023. This growth was underpinned by organic expansion of our business across Bahrain, UAE and Saudi Arabia, and represents the bank’s strategic focus on its core geographies and customer segments, with loans and customer deposits increasing by 7pc and 4pc respectively from the year-end level.

“In addition to our client business, our professional markets activities also continue to deliver exceptional returns. 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.”

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