3rd Quarter Financial Results 2017 - Press Release

3rd Quarter Financial Results 2017 - Press Release

Net Profit of BD 49.43 million (US$ 131.46 million) YTD Sep-2017 Increase of 7.0 percent over the previous year

The Bank recorded a Net Profit of BD 49.43 million (US$ 131.46 million) for the nine months ended 30 September 2017 compared to BD 46.21 million (US$ 122.90 million) for the corresponding period of the previous year, an increase of 7.0 percent. During the nine months ended 30 September 2017, the Bank achieved an Operating Profit of BD 55.77 million (US$ 148.32 million), an increase of 11.3 percent over BD 50.13 million (US$ 133.32 million) achieved during the corresponding period of 2016. For the third quarter of 2017, the Bank recorded a Net Profit of BD 17.69 million (US$ 47.05 million) compared to BD 14.49 million (US$ 38.54 million) for the third quarter of 2016, a strong increase of 22.1 percent.

The financial results were approved at the Board meeting held on 18 October 2017 headed by the Bank’s Chairman Mr. Farouk Yousuf Khalil Almoayyed. On behalf of the Board, Mr. Almoayyed, said, “We’re extremely pleased with the strong results and growth in profitability that the Bank has delivered for the third quarter and first nine months of 2017. Our continued progress serves to underscore the strength of our strategy, our leadership in the market and the enduring confidence of our valued customers in NBB for which we are grateful. I would also like to take this opportunity to thank the executive management team and our employees for their dedicated service to the Bank and to serving the needs of our customers, the economy and our shareholders.”

Commenting on the Bank’s performance, Mr. Jean-Christophe Durand, Chief Executive Officer, said, “The third quarter of 2017 saw strong improvements in profitability. This can be attributed to a number of key factors. This includes increased interest margins and, importantly, growth in the underlying business building on our strengths and pursuing effective diversification. Across our existing activities, we are growing market leadership by expanding our product and service offering including the launch of the latest technologies and platforms both internally and for our customers. We are also creating important new lines of business that leverage our robust financial position, relationships and reach in Bahrain’s economy and across the GCC. While doing so, all of our efforts remain focused on implementing a business model that is now fully geared towards customer centricity – a strategy that benefits all of stakeholders and the bottom line as reflected by our results year-to-date. We look forward to building on this progress and delivering even stronger performance in the forthcoming periods.”

Key Highlights:

Income & Expenses (Nine months of 2017 vs Nine months of 2016):

  • The Net Interest Income: BD 54.03 million (US$ 143.70 million) for 2017 compared to BD 48.67 million (US$ 129.44 million) for 2016. The increase of 11.0 percent is attributable to growth in earning assets and better asset liability management resulting in a strong improvement in the net interest margin.
  • Other income: BD 25.82 million (US$ 68.67 million) for 2017 compared to BD 25.05 million (US$ 66.62 million). Income from core banking activities showed a growth of 23.8 percent and income from treasury and investment activities increased by 10.4 percent while 2016 had a one-off income from sale of investments resulting an overall modest increase in total Other Income during 2017.
  • Cost to Income ratio improved from 32.0 percent in 2016 to 30.2 percent in 2017.
  • Impairment provision of BD 6.27 million (US$ 16.68 million) during 2017 due to financial difficulties faced by some borrowers and the resultant inability to meet their obligations.

Balance Sheet (30th Sep 2017 vs 30th Sep 2016):

  • Total Earning Assets (comprising of Treasury bills, Bank placements, Loans & Advances, Securities and Investment in Associates): BD 2,865.74 million (US$ 7,621.65 million) as at 30 September 2017 compared to BD 2,716.47 million (US$ 7,224.65 million) as at 30 September 2016.
  • Of particular relevance is the growth in Loans & Advances by 12.1 percent to reach BD 1,147.80 million (BD 3,052.66 million) during the same period.
  • Customer Deposits: BD 2,074.54 million (US$ 5,517.39 million) compared to BD 2,111.72 million (US$ 5,616.28 million) as at 30 September 2016.

Earnings:

  • The Earnings per share (EPS) for the nine months of 2017: 39.2 fils, compared to 36.7 fils for 2016.
Financial Summary (Millions) 30 September 2017 30 September 2016
 
2017 BD

2017 US$

2016BD

2016US$
Loans and advances 1,147.80 3,052.66 1,023.96 2,723.30
Investment securities 1,106.41 2,942.58 1,052.57 2,799.39
Total Earning Assets (Treasury Bills, Bank Placements, Loans & Advances, Investment securities & Invt in Associates) 2,865.74 7,621.65 2,716.47 7,224.65
Customers’ deposits 2,074.54 5,517.39 2,111.72 5,616.28
Total assets 3,013.72 8,015.21 2,849.86 7,579.41
Net Profit 49.43 131.46 46.21 122.90
Earnings per share 39.2 fils 10.4 cents 36.7 fils 9.8 cents
Annualised return on average equity 15.6 % 15.6 % 16.6 % 16.6 %