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NBB full year 2019 net profits increase by 6.0% to BHD 74.2 Million (USD 197.4 million)

12th February 2020

Manama, Kingdom of Bahrain – National Bank of Bahrain B.S.C. (NBB) announced strong financial results for the fourth quarter ending 31 December 2019, marked by a 21.3% increase in its net profits to BHD 18.2 million (USD 48.4 million) compared to BHD 15.0 million (USD 39.9 million) in 2018. The increase in net profit was attributed to a growth in operating income of 6.9% and a lower provision charge of BHD 0.1 million compared to BHD 3.1 million for the same period in 2018.

Basic and diluted earnings per share for the quarter stand at 12 fils (USD 3 cents) compared with 10 fils (USD 3 cents) in 2018.

Total comprehensive income for the fourth quarter increased by 153.7% to BHD 27.4 million (USD 72.9 million) compared with BHD 10.8 million (USD 28.7 million) for the same period last year due to higher mark-to-market gains on investment securities classified as fair value through other comprehensive income.

Operating income for the fourth quarter increased by 6.9% to BHD 30.9 million (USD 82.2 million) in 2019 compared to BHD 28.9 million (USD 76.9 million) in the fourth quarter of 2018.

NBB has reported a 6.0% increase in its net profit to BHD 74.2 million (USD 197.4 million) for the year ending 31 December 2019, compared to BHD 70.0 million (USD 186.1 million) in 2018. The increase in net profit was due to a healthy year-on-year growth in operating income of 7.2% and a well maintained cost-to-income ratio of 35.9% in 2019 compared to 35.6% in 2018 despite the Bank’s ongoing investments in human capital and technology to support its transformation strategy.

Basic and diluted earnings per share during the year increased by 6.5% to 49 fils (USD 13 cents) compared with 46 fils (USD 12 cents) in 2018.

Total comprehensive income for the year increased by 36.6% to BHD 91.0 million (USD 242.1 million) compared with BHD 66.6 million (USD 177.0 million) in 2018, attributable to higher mark-to-market gains on investment securities classified as fair value through other comprehensive income.

Operating income for the year increased by 7.2% to BHD 125.8 million (USD 334.6 million) compared with BHD 117.4 million (USD 312.2 million) in 2018.

The Bank’s total shareholders’ equity grew by 11.9% to BHD 532.3 million (USD 1,415.7 million) compared with BHD 475.8 million (USD 1,265.3 million) as of 31 December 2018.

Total assets of BHD 3,194.5 million (USD 8,496.0 million) as of 31 December 2019 were in line with the 31 December 2018 level. Total loans and advances increased by 2.0% to BHD 1,213.7 million (USD 3,227.9 million) compared with BHD 1,190.1 million (USD 3,165.2 million) recorded as of 31 December 2018.

The recommended appropriations for the year 2019 will be submitted to the shareholders at the annual general meeting. These appropriations include BHD 38.7 million for cash dividend at 25% and BHD 3.7 million for donations and contributions. The Board of Directors have also proposed a 1 for 10 bonus issue and a transfer of BHD 8.0 million from retained earnings to the statutory reserve.

Commenting on the latest financials, Mr. Farouk Yousuf Khalil Almoayyed, Chairman of NBB, stated: “On behalf of the Board, I am pleased to announce another year of record results for NBB. I am proud to say that NBB continues to grow with our profitability increasing by 6.0% in 2019 in comparison to 2018 which is a result of our focus towards introducing value-adding services and growing our network, as evidenced by NBB securing a share in multiple national projects.”

“We are proud of what we have achieved in 2019 and we are confident that our efforts for the new year will allow us to continue to achieve improved results and greater value for our shareholders. On that note, I would like to take this opportunity to acknowledge the efforts of the Board, the leadership of our management team and the hard work and dedication of our employees who have collectively driven the Bank towards another successful year”, concluded Mr. Almoayyed.

According to Jean-Christophe Durand, Chief Executive Officer of NBB: “We have successfully achieved a 6.9% growth in operating income in the fourth quarter and 7.2% for the twelve months in comparison to 2018, despite the challenging economic conditions. In the past year we have witnessed major transformation for NBB including the launch of our new identity and our brand promise ‘Closer to You’, which has been our drive for 2019. The deployment of pioneering applications, some of which derive from our commitment and close partnership with the Fintech industry, have given NBB a leading edge in areas such as Open Banking, for which the Bank was the first institution to launch in Bahrain. Digital is becoming a way of life for us and for our customers.  A complete overhaul of our branch network, epitomised by the launch of our flagship Seef branch, has re-energised our engagement with our walk-in clients.  We were also named ‘Best Bank in Bahrain’ by Euromoney which is a testament to the tireless efforts put by NBB employees to make it possible. I am proud of the effort, the application, and the enthusiasm of our various business and support units to grasp the tremendous opportunities that our transformational journey has provided. NBB will continue to move forward in 2020 introducing more tailor-made services and products for our customers. ”

We would like to inform our shareholders that the full set of audited financial statements and the press release are available on the Bahrain Bourse’s website.

National Bank of Bahrain B.S.C. shares are traded on Bahrain Bourse under the trading code: NBB.