NBB achieves 12.1% increase in net profit to reach BD16.62m for Q1 2014
The National Bank of Bahrain (NBB) recorded a Net Profit of BD16.62m ($44.20m) for the first quarter of 2014 compared to BD14.83m ($39.44m) for the corresponding period of the previous year, an increase of 12.1%.
The financial results were approved at the Board meeting held on 15th April 2014 chaired by the Bank’s Chairman Mr. Farouk Yousuf Khalil Almoayyed. Expressing his satisfaction on the steady progress achieved by the Bank, Mr. Almoayyed thanked the Bank’s customers for their continued support and confidence in Bank. He also 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, Mr. Abdul Razak Abdulla Hassan Al Qassim, Chief Executive Officer & Director, said, “The Bank achieved a strong set of financial results on account of steady growth across all business and revenue streams.
The Net Interest Income for the three months period in 2014 was BD15.57m ($41.41m) compared to BD14.21m ($37.79m) for the corresponding period of the previous year, an increase of 9.6 % as a result of increase in earning assets and effective asset liability management. Other income for the three months period in 2014 was BD9.51m ($25.29m) compared to BD9.04m ($24.04m) for the corresponding period of the previous year contributed by increase in normal business activities and higher income from the Bank’s equity investments. Operating expenses continue to be closely managed which increased from BD7.00m ($18.62m) for the three months period in 2013 to BD7.29m ($19.39m) for the three months period in 2014. The Bank’s continues to focus on efficiency management resulting in the Cost to Income Ratio improving from 30.11 % for the three months period in 2013 to 29.07 % for the three months period in 2014. As a matter of prudence, the Bank took a voluntary general loan loss provision of BD0.63m ($1.68m) during the current year to further strengthen the overall financial position.
Steady progress has been achieved in the underlying business activities of the Bank with the Total Earning Assets (comprising of Treasury bills, Bank placements, Loans & Advances, Investment securities and Investment in Associates) increasing from BD2,484.67m ($6,608.16m) as at 31 Mar 2013 to BD2,606.59m ($6,932.42m) as at 31 Mar 2014. Customer Deposits as at 31 Mar 2014 stood at BD2,099.01m ($5,582.47m) compared to BD2,074.69m ($5,517.79m) as at 31 Mar 2013.
The Earnings per share for the three months of 2014 was 17.7 fils compared to 15.8 fils for the corresponding period of 2013.