National Bank of Bahrain (NBB) has reported a 114 per cent increase in net profit at BD17.3 million ($45.9m) for the fourth quarter to December 31, 2022, compared to BD8.1m ($21.5m)in the same period of 2021.

The increase in net profit is mainly due to higher income from a larger portfolio of loans and securities.

The increased market rates and lower provision requirements in the fourth quarter also had positive impacts.

Earnings per share doubled to 8 fils for the fourth quarter of 2022 compared with 4 fils in the same quarter of 2021.

Total comprehensive income for the quarter increased by 220pc to BD28.8m compared with BD9m in 2021.

The increase is predominantly attributable to the mark-to-market movements of the investment securities portfolio and higher profitability in the fourth quarter of 2022.

For the year ended December 31, 2022, NBB has reported an increase of 26pc in net profit to BD68.1m ($180.6m), compared to BD53.9m ($143m) in 2021.

This translates into a 29pc growth in annual consolidated net profit for the group.

The increase in net profit is mainly due to strong business fundamentals reflected through higher net interest income attributable to a larger volume of loans and investment securities, at increasing rates.

Treasury and capital markets activities and lower provision requirements compared to the prior year also significantly contributed to the increase in profitability.

Earnings per share for the year increased to 33 fils compared with 26 fils in 2021.

Total comprehensive income for the year increased by 73pc to BD78.1m compared with BD45.1m in 2021.

The increase is predominantly attributable to the mark-to-market movements of the investment securities and to higher profitability reported in 2022 compared to 2021.

The group’s total equity increased by 7pc as of December 31, 2022 to BD565.9m compared to BD527.8m reported as of end-December 2021.

Total assets increased by 6pc during the year to BD4,785.3m compared to BD4,535.6m recorded on December 31, 2021.

The increase was predominantly related to the growth in liquidity reserves as well as loan growth across both the retail and non-retail portfolios.

Following the group’s strong performance, a 37pc increased cash dividend for the year 2022 will be submitted to shareholders at the annual general meeting.

The appropriations will include the largest cash dividend to date at BD51.5m which represents a 25pc per share dividend, signalling an end to the lower dividends seen throughout the pandemic.

In addition, the board of directors have also proposed a 1 for 10 bonus issue. The appropriations are subject to the approvals of the regulatory authorities and the shareholders at the annual general meeting.

Commenting on the results, NBB chairman Farouk Almoayyed, stated: “We are proud of the overall growth NBB has demonstrated over the year, recording a 15pc growth in operating income in 2022 compared to 2021. We are also exceptionally pleased with the notable non-financial milestones we achieved in the last quarter of 2022.

As the bank progresses in its sustainability roadmap, we have proudly ranked first in our ESG performance across all sectors in the entire Arab World as per Refinitiv ESG Scoring, emphasising our sincere commitment to embedding ESG practices in our business operations. In the year ahead, NBB will continue to invest in enriching the lives of generations by capitalising on growth, development and investment opportunities within the industry and the wider community.”

NBB Group chief executive Usman Ahmed said: “We are pleased to announce a 114pc growth in attributable net profit during the quarter ended December 31, 2022 compared to the same period in 2021. This was accomplished alongside a 5pc growth across the group’s loan portfolios during the year, as well as a 4pc growth in customer deposits. The metrics demonstrate the continued attraction of NBB’s offerings in this competitive market in both the retail and corporate segments.”

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