Manama, January 28, 2019 -National Bank of Bahrain (NBB) today announced strong financial results for the full year ended 31 December 2018 marked by a 14.8% rise in net profit, which reached a record BHD 70.0 million (USD 186.1 million) compared to BHD 61.0 million (USD 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% to BHD 15.0 million (USD 39.9 million) compared to BHD 11.6 million (USD 30.9 million) in the prior-year period.



Key financial highlights:

  • Operating profit before one-offs rose 10.9% y-o-y to BHD 75.6 million (USD 201.0 million) for 2018 compared with BHD 68.2 million (USD 181.4 million) for 2017 [excluding certain one-off income of BHD 3.3 million (USD 8.8 million) in the previous year] illustrating the business development. For the fourth quarter, it rose by 14.8% to BHD 18.1 million (USD 48.1 million) compared with BHD 15.7 million (USD 41.8 million) in the fourth quarter of last year.
  • Net interest income increased 19.4% y-o-y to BHD 87.2 million (USD 231.9 million) compared with BHD 73.1 million (USD 194.3 million) in 2017. For the fourth quarter of 2018, it rose 20.9% to BHD 23.1 million (USD 61.4 million) compared with BHD 19.1 million (USD 50.8 million) in the fourth quarter of 2017.
  • Other income increased by 7.5% y-o-y to BHD 30.2 million (USD 80.3 million) compared with BHD 28.1 million (USD 74.7 million) in the prior-year [excluding certain one-off income of BHD 3.3 million (USD 8.8 million) in the previous year]. For the fourth quarter of 2018, it increased by 3.6% to BHD 5.8 million (USD 15.4 million) compared with BHD 5.6 million (USD 14.9 million) in the fourth quarter of 2017.
  • Operating costs increased 26.7% to BHD 41.8 million (USD 111.1 million) compared to BHD 33.0 million (USD 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% for the year. For the fourth quarter of 2018, operating costs were BHD 10.8 million (USD 28.7 million) compared with BHD 8.9 million (USD 23.7 million) in fourth quarter of 2017.
  • Total assets increased by 3.0% to BHD 3,15 million (USD 8,498.6 million) compared to BHD 3,101.5 million (USD 8,248.8 million) last year. 
  • Total earning assets increased by 2.8% to BHD 3,020.7 million (USD 8,033.8 million) compared to BHD 2,939.7 million (USD 7,818.4 million) last year. 
  • Average loans and advances increased by 8.7% to BHD 1,272.3 million (USD 3,383.8 million) compared with BHD 1,171.0 million (USD 3,114.4 million) last year.
  • Average customer deposits remained flat at BHD 2,107.8 million (USD 5,605.9 million) in an overall flat market.
  • Total equity grew by 6.2% to BHD 475.8 million (USD 1,265.3 million).
  • Strong Capital Adequacy Ratio of 33.8 % (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.

Mr. Farouk Yousuf Khalil Almoayyed, Chairman of NBB, said, “On behalf of the Board, I’m pleased to announce another year of record results for NBB. Profitability grew a significant 14.8% in a year where NBB made strategic investments that supported the Bank’s transformation plans. Tangible growth has been achieved across the businesses as well as substantial enhancements to our human capital. Improvements in our technology and infrastructure are noticeable, setting the foundations for steady and sustainable development. In particular, we are pleased with the results of the Bank’s efforts to diversify and digitalise our business, increase our participation in the local economy and launch our expansion in key regional markets such as Saudi Arabia and the UAE. I’d like to take this opportunity to acknowledge the efforts of our Board, the leadership of our management team and the hard work and dedication of our employees, whose efforts have taken the Bank into 2019 in a better position to deliver value and growth for the Kingdom of Bahrain, our shareholders and customers alike. We look forward to keeping you apprised on our continued transformation and to further enhancing our offering, capabilities and performance in the forthcoming periods.”

Mr. Jean-Christophe Durand, Chief Executive Officer of NBB, added, “2018 marked the first full year of NBB’s transformation journey initiated last year.  The Bank’s results underscore the progress we have made in enabling the Bank to adapt to the fast-changing environment and establishing a sustainable growth trend. The growth in net profitability for the year and very importantly, the growth achieved at operating profits level (before one-offs) reflect the strengths of our business development initiatives combined with the implementation of a robust risk framework.  Contributing to these results were also stepped up efforts to support growth in the national economy, which remains at the core of our strategy. During the year, NBB was part of strategic financing for the Kingdom of Bahrain and an active player in capital markets transactions. We grew our support for SMEs and enhanced our product and services offering for our retail client base.”

Mr. Durand continued, “Technology plays a significant role in all of these efforts as we advanced our digitisation programme aimed at delivering our products and services efficiently, simply and seamlessly. To this end, in 2018, we rolled out a new business online banking platform and website and are focused on accelerating our digital capabilities and adoption in the year ahead. In 2018 again, a strong focus was dedicated to talent acquisition and identification within the Bank and our commitment to human capital development now positions NBB as an employer of choice for Bahraini talent, which was one of our key targets. We enter 2019 with strong momentum and commitment to delivering on our strategy and strengths for the benefit of all of our stakeholders.”

Based on the above results, the board of directors has recommended to the Shareholders’ general assembly, the following appropriations:

Cash dividend: 25% (2017: 25%)                  BHD 35.1 million (USD 93.4 million)

Donations and contributions                        BHD 3.5 million (USD 9.3 million)

Transfer to general reserve                          BHD 21.0 million (USD 55.9 million)

The Board has also proposed to the shareholders a bonus issue of BHD 14.0 million (USD 37.2 million) at the rate of one additional share for every ten shares held (10 %). The bonus share issue is proposed to be made through utilisation of BHD 14.0 million (USD 37.2 million) from the general reserve, which is subject to regulatory approvals. The total cash and stock for 2018 amounts to 35%. Also, it is recommended that BD 7.0 million (USD 18.6 million) to be transferred from general reserve to statutory reserve.

The appropriations to Donations and contributions will bring the total allocation under the programme to BHD 49.2 million (USD 130.9 million) since its inception in 1980. During the year, the Bank disbursed BHD 1.6 million (USD 4.3 million) to numerous worthy causes in the Kingdom of Bahrain.

Financial Summary (31 December)                                                                                                             (in Millions)






Loans and advances





Investment securities





Total earning assets (Treasury Bills, Placements, Loans and advances, Investment securities and Investment in associates)





Customers’ deposits





Total assets





Net profit





Earnings per share

50 fils

13 cents

44 fils

12 cents