Dr Essam Fakhro and Abdul Al Qassim
NBB net profit surges 6.7pc to top $71m in H1
Manama, July 10, 2013
The National Bank of Bahrain (NBB) has announced a net profit of BD26.77 million ($71.20 million) for the six months of the year as against BD25.10 million for the same period last year, marking an increase of 6.7 per cent.
For the second quarter, the bank recorded a net profit of BD11.94 million compared with BD10.99 million for the corresponding period of the previous year, an increase of 8.6 per cent, according to a report in the Gulf Daily News, our sister publication.
The financial results were approved at the board meeting yesterday chaired by deputy chairman Dr Essam Fakhro.
"The performance continues to show steady growth and we are able to deliver consistent returns to our shareholders," chief executive and director Abdul Razak Al Qassim said.
"The acceleration in Bahrain's economic growth as reflected in the GDP growth numbers of the first quarter is a welcome development and the bank is well-positioned to capitalise on new business opportunities as the economy continues to grow during the rest of the year," he added.
Net interest income for the six-month period was BD28.36 million compared with BD31.54 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.
Other income for the six months was slightly lower at BD14.21 million compared with BD14.46 million for the corresponding period of the previous year mainly due to lower dividend income on equity investments.
Operating expenses decreased from BD13.84 million for the first half last year to BD13.56 million for the first six months this year.
As a matter of prudence, the bank took a voluntary general loan loss provision of BD1.76 million during the current year to further strengthen the overall financial position.
The bank continues to make steady progress with total earning assets, comprising treasury bills, bank placements, loans and advances and investment securities, as of June 30, at BD2,491.03 million, compared with BD2,324.64 million as of June 30 last year.
Customer deposits as on June 30 stood at BD2,083.73 million compared to BD1,940.24 million as on June 30, last year, an increase of 7.4 per cent. Earnings per share for the six months of the current year were 28.5 fils compared to 26.7 fils for the corresponding period last year. – TradeArabia News Service