NBB announces strong financial results

Manama, (BNA): National Bank of Bahrain (NBB) announced a strong financial results for the full year ended 31 December 2018 marked by an 14.8 per cent rise in net profit, which reached a record BD 70.0 million ($ 186.1 million) compared to BD 61.0 million ($ 162.3 million) in 2017. Continued growth was supported by gaining new clients in all segments and diversifying the range of products and services offered. For the fourth quarter of 2018, the Bank’s net profit increased 29.3 per cent to BD 15.0 million ($ 39.9 million) compared to BD 11.6 million ($ 30.9 million) in the prior-year period. Operating profit before one-offs rose 10.9 per cent y-o-y to BD 75.6 million ($ 201.0 million) for 2018 compared with BD 68.2 million ($ 181.4 million) for 2017 [excluding certain one-off income of BD 3.3 million ($ 8.8 million) in the previous year] illustrating the business development. For the fourth quarter, it rose by 14.8 per cent to BD 18.1 million ($ 48.1 million) compared with BD 15.7 million ($ 41.8 million) in the fourth quarter of last year. Net interest income increased 19.4 per cent y-o-y to BD 87.2 million ($ 231.9 million) compared with BD 73.1 million ($ 194.3 million) in 2017. For the fourth quarter of 2018, it rose 20.9 per cent to BD 23.1 million ($ 61.4 million)compared with BD 19.1 million ($ 50.8 million) in the fourth quarter of 2017. Other income increased by 7.5 per cent y-o-y to BD 30.2 million ($ 80.3 million) compared with BD 28.1 million ($ 74.7 million) in the prior-year [excluding certain one-off income of BD 3.3 million ($ 8.8 million) in the previous year]. For the fourth quarter of 2018, it increased by 3.6 per cent to BD 5.8 million ($ 15.4 million) compared with BD 5.6 million ($ 14.9 million) in the fourth quarter of 2017. Operating costs increased 26.7 per cent to BD 41.8 million ($ 111.1 million) compared to BD 33.0 million ($ 87.7 million) last year in line with ongoing investments in human capital and technology to support the Bank’s transformation strategy. This resulted in an increase to the Bank’s cost-to-income ratio, which reached 35.6 per cent for the year. For the fourth quarter of 2018, operating costs were BD 10.8 million ($ 28.7 million) compared with BD 8.9 million ($ 23.7 million) in fourth quarter of 2017. Total assets increased by 3.0 per cent to BD 3,195.5 million ($ 8,498.6 million) compared to BD 3,101.5 million ($ 8,248.8 million) last year. Total earning assets increased by 2.8 per cent to BD 3,020.7 million ($ 8,033.8 million) compared to BD 2,939.7 million ($ 7,818.4 million) last year. Average loans and advances increased by 8.7per cent to BD 1,272.3 million ($ 3,383.8 million) compared with BD 1,171.0 million ($ 3,114.4 million) last year. Average customer deposits remained flat at BD 2,107.8 million ($ 5,605.9 million) in an overall flat market. Total equity grew by 6.2 per cent to BD 475.8 million ($ 1,265.3 million). Strong Capital Adequacy Ratio of 33.8 per cent (before 2018 appropriations). Earnings per share for the year increased from 44 fils (12 cents) in 2017 to 51 fils (13 cents) for the full year 2018.