NBB profits rise 11.3pc

The National Bank of Bahrain (NBB) yesterday announced recording a solid double-digit growth in its profitability for the first nine months of 2018, supported mainly by its “more prudent asset liabilities management” skills. During the period, net profit rose 11.3 per cent to BD55.0 million (US$146.3m) from BD49.4m (US$131.4m) in the corresponding period of 2017. Earnings per share increased to 39.8 fils (US$ 11 cents) from 35.8 fils (US$ 10 cents) in 2017. Operating profit rose by 9.7pc y-o-y to BD57.5m (US$152.9m) from the prior-year period. This excludes certain one-off income of BD3.3m (US$8.8m) in the previous year.

Net interest income increased 18.9pc y-o-y to BD64.2m (US$ 170.7m) as other income rose by 8pc y-o-y to BD24.3m (US$64.6m) from the prior-year period. Operating costs were up to BD31.0m (US$82.4m) compared to BD24.1m (US$64.1m), an increase of 28.6pc which is in line with the ongoing investments in human capital and technology to support the Bank’s transformation strategy. That resulted in an increase of cost-to- income ratio to 35.0pc. Other income increased by 8pc y-o-y to BD24.3m (US$64.6m) from the same period a year ago.

For the third quarter of 2018, the bank recorded a net profit of BD18.2m (US$48.4m) a growth of 2.8pc compared to BD17.7m (US$ 47.1m) in the prior-year period. Operating profit rose by 9.6pc to BD19.5m (US$51.9m) while net interest income increased 20.9pc to BD23.1m (US$61.4m) from the third quarter of 2017. Loans and advances increased 2.2pc to BD1,172.8m (US$3,119.1m). Customer deposits stood at BD2,082.5m (US$5,538.6m) compared to BD2,074.5m (US$5,517.3m). Looking ahead Jean-Christophe Durand, Chief Executive Officer of NBB said, “We enter the fourth quarter with strong momentum and look forward to recording even further operational progress and financial gains during the remainder of 2018.”