NBB to recommend 30pc dividend rise

National Bank of Bahrain (NBB) yesterday announced it would be recommending a 30 per cent increase in dividend payments for last year, at its annual meeting. The announcement was made by chairman Farouk Almoayyed following a board meeting that unveiled that NBB achieved a net profit of BD45.64 million ($121.38m) in 2011, compared to a net profit of BD43.02m the previous year, representing a 6.1pc growth. For the fourth quarter of 2011, net profit reached BD9.69m despite setting aside BD1.5m towards loan loss provision and BD2.30m towards voluntary impairment on equity investments. That was a 7.8pc increase on the fourth quarter of 2010. \"The focus during the year was to increase the business and revenue streams while exercising effective control over operating costs,\" said chief executive Abdul Razak Al Qassim. \"This has resulted in a steady growth in the total earning assets and revenue streams while cost to income ratio declined.\" Net interest income for the year at BD55.37m showed a strong growth of 13.7pc on account of better balance sheet management and improved yield on earning assets. Other income at BD24.55m showed a growth of 5.9pc over the previous year. Operating expenses were carefully managed which showed a marginal increase of 3pc, resulting in the cost to income ratio improving from 35.9pc in 2010 to 33.3pc last year. The total balance sheet stood at BD2.388 billion at the year-end compared to BD2.274bn at the previous year-end. Customers\' deposits at BD19bn were up 7.7pc, while the capital adequacy ratio remained healthy at 25.1pc. Shareholders\' equity before 2011 appropriations stands at BD274.73m. Appropriations to donations and contributions will bring the total allocation under the programme to BD29.40m since its inception in 1980. During the year, the bank disbursed BD2.51m for worthy causes in Bahrain. Based on these results the board is recommending a 30pc cash dividend of BD25.66m. \"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,\" added Mr Al Qassim. Mr Almoayyed said he thought the results were a satisfactory performance and thanked the bank\'s clients and the executive management team for their support.