National Bank of Bahrain recorded a net profit of BD14.11m ($37.53m) for the first quarter of 2012 compared to BD13.63m ($36.25m) for the corresponding period of the previous year, an increase of 3.5%. This has been achieved despite setting aside BD3.74m ($9.95m) 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.
The financial results were approved at the Board meeting held on 19th April 2012 chaired by the Bank’s Chairman Farouk Yousuf Khalil Almoayyed. Expressing his satisfaction on the steady and consistent results achieved by the Bank, Almoayyed thanked 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 & 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 steams while maintaining a prudent approach to asset quality.”
The Net Interest Income for the three months period in 2012 was BD15.92m ($42.34m) compared to BD13.36m ($35.53m) for the corresponding period of the previous year, a strong growth of 19.2 % which is attributable to growth in earning assets and improved returns on asset deployment. Other income for the three months period in 2012 was BD9.16m ($24.36m) compared to BD8.00 ($21.28m) for the corresponding period of the previous year, an increase of 14.5%, resulting from increased business volumes. Operating expenses increased marginally from BD6.81m ($18.11m) for the three months period in 2011 to BD7.23m ($19.23m) for the three months period in 2012 as a result of growth in the underlying business activities. As a matter of prudence, the Bank took a voluntary general loan loss provision of BD3.74m ($9.95m) during the current year to further strengthen its balance sheet position.
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 31 Mar 2012 stood at BD2,321.48m ($6,174.15m) compared to BD2,068.04m ($5,500.11m) as at 31 Mar 2011. Customer Deposits as at 31 Mar 2012 stood at BD 1,920.99m ($5,109.02m) compared to BD1,724.69m ($4,586.94m) as at 31 Mar 2011, an increase of 11.4%.
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.