NBB posts Net Profit of $71.2m, up by 6.7%

The Bank recorded a Net Profit of BD 26.77 million (US$ 71.20 million) for the six months ended 30 June 2013 compared to BD 25.10 million (US$ 66.76 million) for the corresponding period of the previous year, an increase of 6.7 %. For the second quarter of 2013, the Bank recorded a Net Profit of BD 11.94 million (US$ 31.76 million) compared to BD 10.99 million (US$ 29.23 million) for the corresponding period of the previous year, an increase of 8.6 %. The financial results were approved at the Board meeting held on 9th July 2013 chaired by the Bank’s Deputy Chairman Dr. Essam Abdulla Fakhro. Expressing his satisfaction on the results, Dr. Fakhro commented that he is pleased to see the consistent progress made by the Bank. He thanked the executive management team and employees for their dedicated service and the Bank’s clients for their valued business relationship and the confidence reposed by them in the institution. Commenting on the Bank’s performance and future outlook, Mr. Abdul Razak Abdulla Hassan Al Qassim, Chief Executive Officer & Director said, “The Bank’s performance continues to show steady growth and we are able to deliver consistent returns to our shareholders. The acceleration in Bahrain’s economic growth as reflected in Qtr1-2013 GDP is a welcome development and the Bank is well positioned to capitalize on new business opportunities to further enhance its leadership position as the economy continues to grow during the rest of the year”. The Net Interest Income for the six months period in 2013 was BD 28.36 million (US$ 75.43 million) compared to BD 31.54 million (US$ 83.88 million) for the corresponding period of the previous year, the decrease 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 period in 2013 was slightly lower at BD 14.21 million (US$ 37.79 million) compared to BD 14.46 million (US$ 38.46 million) for the corresponding period of the previous year mainly due to lower dividend income on the Bank’s equity investments. Operating expenses continue to be closely managed which decreased from BD 13.84 million (US$ 36.81 million) for the six months period in 2012 to BD 13.56 million (US$ 36.06 million) for the six months period in 2013. As a matter of prudence, the Bank took a voluntary general loan loss provision of BD 1.76 million (US$ 4.68 million) during the current year to further strengthen the overall financial position. The Bank continues to make steady progress with the Total Earning Assets (comprising of Treasury bills, Bank placements, Loans & Advances and Investment securities) as at 30 June 2013 at BD 2,491.03 million (US$ 6,625.08 million) compared to BD 2,324.64 million (US$ 6,182.55 million) as at 30 June 2012. Customer Deposits as at 30 June 2013 stood at BD 2,083.73 million (US$ 5,541.84 million) compared to BD 1,940.24 million (US$ 5,160.21 million) as at 30 June 2012, an increase of 7.4 %. The Earnings per share for the six months of 2013 was 28.5 fils compared to 26.7 fils for the corresponding period of 2012.