National Bank of Bahrain (NBB) recorded a net profit of BD14.11 million ($37.53 million) for the first quarter of 2012, compared with BD13.63 million ($36.25 million) for the corresponding period of the previous year, an increase of 3.5 per cent.

The results have been achieved despite setting aside BD3.74 million ($9.95 million) towards general loan loss provision as part of the bank's continuous efforts to strengthen its balance sheet and in line with its prudent provisioning policies, a bank statement said.

The financial results were approved at the board meeting held today (April 19).

Farouk Almoayyed, the bank’s chairman, expressed his satisfaction on the steady and consistent results achieved by the bank and appreciated the efforts of the bank’s executive management team and the employees for their dedication.

Commenting on the bank’s performance and future outlook, Abdul Razak Abdulla Hassan Al Qassim, chief executive officer and director, said: “We continue to deepen our domestic market presence by pursuing new business opportunities and leveraging our existing customer relationships. The results reflect the success of our key business initiatives built on a sound business model. We will focus on new opportunities, diversify income streams while maintaining a prudent approach to asset quality.”

The net interest income for the three months period in 2012 was BD15.92 million ($42.34 million) compared to BD13.36 million ($35.53 million) for the corresponding period of the previous year, a strong growth of 19.2 per cent which is attributable to growth in earning assets and improved returns on asset deployment, the bank said.

Other income for the three-month period was BD9.16 million compared to BD8 million for the corresponding period of the previous year, an increase of 14.5 per cent, resulting from increased business volumes. Operating expenses increased marginally from BD6.81 million for the first quarter in 2011 to BD7.23 million for the Q1 2012 as a result of growth in the underlying business activities.

The Bank’s focus on the domestic market has been rewarding with an increase in business and market position.  Total Earning Assets (comprising of Treasury bills, Bank placements, Loans & Advances and Investment securities) as at March 31 stood at BD2,321.48 million ($ 6,174.15 million) compared to BD2,068.04 million ($5,500.11 million) as at March 31, 2011. Customer deposits as at March 31, 2012 stood at BD1,920.99 million ($5,109.02 million) compared to BD1,724.69 million ($4,586.94 million) as at March 31, 2011, an increase of 11.4 per cent. 

The Earnings per share for the three months of 2012 was 16.5 fils compared to 15.9 fils for the corresponding period of 2011. – TradeArabia News Service