NATIONAL Bank of Bahrain (NBB) on Wednesday announced a net profit of BHD20.4 million ($ 54.3 million) for the first quarter ended 31 March 2019, an increase of 3.6% compared to BHD19.7 million ($ 52.4 million) compared with the prior year period.

Operating profit rose by 17.4% y-o-y to BHD23.6 million ($ 62.8 million) compared with BHD20.1 million ($ 53.5 million) in the prior-year period.

Operating income rose by 13.6% y-o-y to BHD34.2 million ($ 91.0 million) compared with BHD30.1 million ($ 80.1 million) in the prior-year period.

Net interest income increased 21.4% y-o-y to BHD23.8 million ($ 63.3 million) compared with BHD19.6 million ($ 52.1 million) in the prior-year period.

Improvements were driven by prudent asset liabilities management and the acquisition of new customers from various sectors across the Bank’s business lines during the quarter.

Other income stood almost at the same level at BHD10.4 million ($ 27.7 million). Operating costs were up to BHD10.6 million ($28.2 million) compared to BHD10.0 million ($ 26.6 million), an increase of 6.0% in line with the ongoing investments in human capital and technology to support the Bank’s transformation strategy. Cost-to-income ratio was 31.0%, which nevertheless remains well in line with industry norms.

Total comprehensive income for the period was BHD25.7 million ($ 68.4 million) compared with BHD10.2 million ($ 27.1 million) in the prior-year period.

Total earning assets increased by 5.8% to BHD3,037.5 million ($ 8,078.5 million) compared with BHD2,871.9 million ($ 7,638.0 million) as at 31 March 2018.

Average loans and advances stood almost at the same level of BHD1,209.3 million ($ 3,216.2 million).

Average customer deposits increased by 2.8% to BHD2,157.4 million ($ 5,737.8 million) compared with BHD2,099.4 million ($ 5,583.5 million) as at 31 March 2018.

Total equity grew by 11.7% to BHD468.1 million ($ 1,244.9 million) compared with BHD419.0 million ($ 1,114.4 million) as at 31 March 2018.

Earnings per share during the period stood at the same level of 13 fils ($ 35 cents).

Farouk Yousuf Khalil Almoayyed, Chairman of NBB, said “we’re pleased to announce strong performance and results for the first quarter of 2019, building on the record income generation and profitably delivered last year. Operating profit showed a very robust growth of 17.4% compared with the same quarter last year mainly driven by a great contribution from our core banking activities. Our sustained growth is further evidence that NBB’s strategy of transformation is paying off.” — SG