National Bank of Bahrain (NBB) has reported a 23 per cent increase in its net profit attributable to the shareholders for the first quarter ended March 31, 2024, posting BD27.5 million ($72.9m) compared to BD22.4m ($59.4m) 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 quarter of 2023, higher gains from investment securities and hedging activities, as well as lower provisioning requirements.

Earnings per share increased to 12 fils for the first quarter of 2024 compared with 10 fils for the same quarter of 2023.

Total comprehensive income attributable to NBB shareholders for the quarter increased by 108pc to BD32m compared with BD15.4m in 2023. The increase is attributable to the positive mark-to-market movements of the equity and Bahrain sovereign bond portfolios.

The group’s total equity attributable to shareholders decreased by 2pc as of end-March 2024 to BD551.2m ($1,462.1m) compared to BD565m ($1,498.7m) reported as of December 31, 2023.

The group’s total assets decreased by 3pc during the quarter to BD5,229.2m compared to BD5,372.5m recorded on December 31, 2023. The decrease was mainly due to lower placements compared to the year-end level as part of the group’s normal balance sheet management activities. Despite the decline in total assets, loans and advances have registered a 1pc growth from December 31, 2023.

On first-quarter performance, NBB chairwoman Hala Yateem said, “NBB Group has continued its growth trajectory across its key markets of Bahrain, the UAE and Saudi Arabia, with attributable profit reaching a record BD27.5m in the first quarter of 2024, making it the highest quarterly profit in the group’s history, with a growth of 23pc compared to the same period last year.

“The balance sheet at the end of the quarter remains strong with total assets exceeding BD5 billion. This performance translates into an annualised average return on equity of 19.3pc, highlighting our commitment to delivering exceptional value to our shareholders.

“The quarter also marked our strong focus on ESG alongside financial success. These achievements reflect a strong start to 2024, and we look forward to a successful rest of the year.”

NBB Group chief executive Usman Ahmed commented, “NBB delivered robust performance in the first quarter of 2024, characterised by significant financial and non-financial achievements. Building on the previous year’s momentum, operating income and operating profit registered increases of 13pc and 6pc compared to Q1 2023.

“This consistent progress underscores NBB’s focus on successfully executing its organic growth strategy. During the quarter, NBB also successfully developed and launched a range of customer-centric products and services across various business lines.

“NBB launched Bahrain’s first mortgage offering with integrated solar financing. Furthermore, a landmark MoU with the Industry and Commerce Ministry to promote sustainable industrial practices made NBB the kingdom’s first and only bank to support the ministry’s ‘Green Factory Seal’ programme, further solidifying our commitment to building a more sustainable future.”

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