NBB reports BD55.26 million net profit

National Bank of Bahrain (NBB) achieved a Net Profit of BD55.26 million (US$146.97m) in 2015, compared to BD53.44m (US$142.12m) in 2014, an increase of 3.4 per cent. 

For the fourth quarter of 2015, the bank recorded a Net Profit of BD11.90m (US$31.65m) compared to BD11.28m (US$30.00m) for the corresponding period of the previous year, an increase of 5.5pc. The Earnings Per Share (EPS) improved from 51.6 fils in 2014 to 53.3 fils in 2015.

Expressing his satisfaction on the performance, the bank’s Chairman Farouk Yousuf Khalil Almoayyed said, “These results reflect our commitment to enhance shareholders returns while contribute positively to domestic economic growth.” 

Abdul Razak A Hassan Al Qassim, the bank’s Chief Executive Officer & Director said: “The bank’s business strategy of providing strong support for growth in the domestic economy while selectively seeking new business opportunities in the region have resulted in a robust increase in the overall business.” 

Net Interest Income for 2015 was BD59.52m (US$158.30m) compared to BD59.58m (US$158.44m) for 2014. Operating expenses increased marginally by 3.1pc to reach BD30.10m. An amount of BD7.74m was set aside towards loan loss provision which includes BD1.70m towards General Loan Loss Provision to strengthen the overall financial position. An amount BD1.30m was set aside towards Equity impairment based on the ongoing assessment of the equity portfolio. 

Customers’ deposits continue to show steady growth which stood at BD2,247.02m as at December 31, 2015, reflecting a growth of 4.3pc. Loans and Advances increased from BD780.97m as at previous year-end to BD1,051.72m as at December 31, 2015, a healthy growth of 34.7pc. 

The board has also proposed to the shareholders a bonus issue of BD10.54m at the rate of one additional share for every ten shares held (10pc). The bonus share issue is proposed to be made through utilisation of BD10.54m from the General Reserve, which is subject to regulatory approvals. Total cash and stock dividend payouts for 2015 amounts to 35pc.

Looking ahead, Qassim said: “The growth prospects for 2016 is extremely challenging given current global uncertainties and weak oil prices, which particularly impacts the GCC. We are hopeful that Bahrain’s focus on infrastructure and other social developments will largely mitigate the negative effects of a weak global and regional economic outlook. We reaffirm our strong commitment to meet the expectations of our customers while reassuring our shareholders of continued progress in the years ahead.”