MANAMA: The National Bank of Bahrain (NBB) has achieved a net profit of BD13.63 million ($36.25m) for the first quarter of 2011, compared to BD13.22m ($35.16m) in the same period last year, an increase of 3.1 per cent, it was announced yesterday.
Chairman Farouk Almoayyed said the results reflect the bank's strong financial position and its ability to continue to generate steady and strong returns to its shareholders by focusing on core commercial banking activities.
He hailed the efforts of the bank's executive management team and the employees for their dedication and thanked the bank's customers for their continued support and the confidence reposed by them in NBB.
"The increase in net profit is the result of the successful implementation of the bank's strategy which enabled us to continue to grow the operating income streams while managing the costs efficiently," chief executive officer and director Abdul Razak Abdulla Hassan Al Qassim said.
"The bank's asset quality, capital and liquidity position remain strong which is a reflection of our prudent approach to business and effective risk management framework.
"NBB continues to focus on enhancing its service quality and product innovations to meet the growing needs and expectations of its customers," he said.
The net interest income for the three months in 2011 was BD13.36m ($35.53m) compared to BD11.71m ($31.14m) for the corresponding period of the previous year, an increase of 14.1pc which is attributable to better balance sheet management.
Other income for the three months in 2011 was BD8m ($21.28m) compared to BD8.02m ($21.33m) for the corresponding period of the previous year.
Operating expenses increased marginally from BD6.46m ($17.18m) for the three-month period in 2010 to BD6.81m ($18.11m) for the three months in 2011 as a result of growth in the underlying business activities.
An amount of BD0.86m ($2.29m) was provided during the year 2011 towards impairment on investments due to declining stock market valuations.
The bank continues to focus on the active sectors of the domestic economy while selectively seeking new opportunities in the regional market.
Loans and advances at the end of first quarter stood at BD939.31m ($2,498.16m) compared to BD1,108.63m ($2,948.48m) at the end of first quarter in 2010, the decrease mainly on account of some large-value repayments by certain corporates.
Customer deposits increased from BD1,560.76m ($4,150.96m) at the end of first quarter in 2010 to BD1,724.69m ($4,586.94m) at the end of first quarter in 2011, a growth of 10.5pc.
The increase in deposits is the result of the bank's successful deposit mobilisation initiatives and a reflection of the trust reposed by the customers in the bank.
The bank's investment securities portfolio increased from BD408.29m ($1,085.88m) at the end of first quarter of 2010 to BD698.26m ($1,857.07m) in the same period of 2011 as a result of deployment of surplus liquidity in highly rated debt securities.
The earnings per share for the three months of 2011 was 15.9 fils compared to 15.5 fils for the three months of 2010.