Alubaf, a Bahrain-based wholesale bank, hasy reported an increase of 35 per cent in net profit at $11.6 million for the first quarter, compared with the same period a year ago.

Alubaf chief executive Hasan Abulhasan said the main driver of the increase in income was core business activity, reported the Gulf Daily News, our sister publication.

 The net interest income increased by 33 per cent and fee and commission income by 70 per cent, compared with the same period last year.

Cost to income ratio stabilised at 22 per cent and capital adequacy remained strong at 48 per cent.

Loan recovery in the first quarter reduced the 'non-performing loans to gross loans ratio' to below one per cent.

Loan portfolio increased by 31 per cent and non-trading investments grew by 14 per cent in the first quarter, compared with the levels as on December 31 last year.

"The first-quarter financial performance is encouraging and indicates that the bank is on the right growth path, as envisaged by the management," stated Abulhasan.

"The bank has delivered consistent growth and return on average equity and business expansion continues," he added.-TradeArabia News Service