NBB profit jumps 5.1pc to $39.4m
Manama, April 10, 2013
National Bank of Bahrain (NBB) has reported a net profit of BD14.83 million ($39.44 million) for the first quarter, up 5.1 per cent compared to BD14.11 million for the same period last year.
The financials were approved at the NBB board meeting held yesterday, under the chairmanship of Farouk Almoayyed, reported the Gulf Daily News, our sister publication.
Expressing satisfaction with the results, Almoayyed reiterated that the bank was committed to contributing to the development of the kingdom.
Net interest income for the first three months was BD14.21 million compared with BD15.92 million for the corresponding period of the previous year.
The decrease was largely on account of lack of quality lending opportunities and reduced returns on surplus liquidity due to low short-term interest rates, the bank said.
Other income was BD9.04 million compared with BD9.16 million last time with the growth in income from normal business activities offset by lower dividend on the bank's equity investments.
The operating expenses continue to be closely managed, decreasing from BD7.23 million to BD7 million.
As a matter of prudence, the bank took a voluntary general loan loss provision of BD1 million during the current year to further strengthen the overall financial position.
"The steady growth in profitability is a result of the realignment of business strategies by leveraging on our core strengths while meeting customer expectations," chief executive and director Abdul Razzak Al Qassim said.
"We hope the overall economic conditions both in Bahrain and the region improves in the coming quarters and the bank is well positioned to capitalise on emerging opportunities to further enhance our leadership position," he added.
The bank continues to make steady progress with the total earning assets (comprising treasury bills, bank placements, loans and advances and investment securities) as on March 31 at BD2.48 billion compared to BD2.32 billion as on March 31, last year.
The Bahraini lender's customer deposits as on March 31 has surged to BD2.07 billion from BD1.92 billion in the same period last year, an increase of 8 per cent. The earnings per share were 15.8 fils as against 15 fils for the corresponding period last year.-TradeArabia News Service