In spite of the turmoil in the global financial markets, National Bank of Bahrain (NBB) has managed to increase its net profit by 4.3 per cent in the first nine months of the year.

The proifts rose to BD35.06 million ($93.24 million) from BD33.63 million for the same period last year.

'I am pleased with the results that the bank has delivered in an extremely difficult and volatile business environment,' board chairman Abdulla Ali Kanoo told the Gulf Daily News, our sister publication.

'At a time when leading international institutions are struggling to cope with the fallout of the subprime crisis, the bank has demonstrated stability and growth,' he added.

'The bank's results are significant particularly considering the economic turmoil and the depressed global financial markets,' said chief executive officer Razak A Hassan Al Qassim.

'We have been able to meet the challenges of the environment and meet our stakeholder expectations due to our robust risk management processes and focused business strategies,' he added.

The growth in the bank's loans and deposits book in its core markets in the GCC resulted in an increase of net interest income from BD31.05 million to BD33.77 million.

Other income also increased by 6.9 per cent from BD18.43 million to BD19.71 million primarily on account of an increase in treasury income from higher foreign exchange profit, partly off-set by lower profit on investments due to the global economic meltdown.

Other income from retail lending activities and from corporate businesses showed an increase, mainly on account of good commission income from lead managing and other financing activities.

Operating expenses increased from BD15.85 million to BD18.62 million due to increased staff expenses on account of annual salary adjustments and additions to the bank's human resources to meet expanding business needs.

The bank's retail business delivered highly competitive offerings through effective sales and marketing initiatives and as always, maintained superior quality customer services.

As a result, loans and advances as at September 30 this year stood at BD1.2 billion compared to BD945.96 million last time, reflecting a strong growth of 18.5 per cent.

Loans portfolio increased mainly on account of extensive participation in the domestic corporate market and attractive consumer credit products.

Customers' deposits as at September 30 this year stood at BD1.5 billion, higher by 17.6 per cent as compared to BD1.3 billion for the same period last year.

Return to the shareholders continued to improve, with earnings per share of 45 fils for the nine months compared to 43 fils last time. - TradeArabia News Service