The National Bank of Bahrain (NBB) has registered a net profit of BD45.64 million ($121.38 million) in 2011, up 6.1 per cent compared to the BD43.02 million recorded in the previous year.

Announcing the 2011 results, NBB chairman Farouk Yousuf Khalil Almoayyed said its net profit for the fourth quarter grew 7.8 per cent to touch BD9.69 million compared to BD8.99 million during the same period in 2010.

The bank had achieved these results despite setting aside BD1.5 million towards loan loss provision and BD2.3 million towards voluntary impairment on equity investments, revealed Almoayyed at the NBB board meeting on Sunday.

The bank's net interest income for the year stood at BD55.37 million, thus posting a strong growth of 13.7 per cent on account of better balance sheet management and improved yield on earning assets.

The other income at BD24.55 million grew 5.9 per cent over the previous year, the chairman said.

Operating expenses were carefully managed which showed a marginal increase of three per cent, resulting in the cost to income ratio improving from 35.9 per cent in 2010 to 33.3 per cent in 2011.

The total balance sheet of the bank stood at BD2.38 billion as of December 31, 2011 compared to BD2.27 billion the previous year, he added.

Based on the above results, the board has recommended distribution of 30 per cent cash dividend to the shareholders, said Almoayyed.

The NBB customer deposits surged 7.7 per cent to hit BD1.91 billion thus reflecting the success of the bank's deposit mobilization initiatives.

The total earning assets stood at BD2.25 billion as of December 31, 2011 compared to BD2.15 billion the previous year, reflecting a steady growth of 5 per cent.

NBB said its capital adequacy ratio remained healthy at 25.1 and had a well diversified asset composition with strong liquidity.

Commenting on the results, CEO and director Abdul Razak A Hassan Al Qassim said the focus during the year was to increase the business and revenue streams while exercising effective control over operating costs.

'This has resulted in a steady growth in the total earning assets and revenue streams while cost to income ratio declined,' he stated.

On the year ahead, Qassim said: “As we enter 2012 with an uncertain global economic environment, I am convinced that our strategic focus, core values and professional approach to business will enable us to deliver the best value to our stakeholders and further improve our position in the market place.”-TradeArabia News Servicre