26 October 2014   
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 NBB Financial Results for the year 2011

Net Profit of BD 45.64 million (US$ 121.38 million), increase of 6.1% over 2010 Dividend of 30 % recommended

The Bank achieved a Net Profit of BD 45.64 million (US$ 121.38 million) in 2011, compared to a Net Profit of BD 43.02 million (US$ 114.41 million) recorded in 2010, an increase of 6.1%. For the fourth quarter of 2011, the Bank recorded a Net Profit of BD 9.69 million (US$ 25.77 million), despite setting aside BD 1.50 million towards loan loss provision and BD 2.30 million towards voluntary impairment on equity investments, compared to a Net Profit of BD 8.99 million (US$ 23.91 million) for the corresponding period of the previous year, an increase of 7.8%.

At the Board of Directors meeting held on Sunday 22 January 2012, chaired by the Bank’s Chairman, Mr. Farouk Yousuf Khalil Almoayyed, the Board reviewed and approved the Bank’s financial results for the year 2011.

Expressing his satisfaction over the performance, the Bank’s Chairman Mr. Farouk Yousuf Khalil Almoayyed thanked the Bank’s clients for their valued business relationship and the confidence reposed by them in the Bank. He expressed his appreciation for the Bank’s executive management team’s efforts and thanked the employees for their dedicated service, commitment and all round efforts.

Mr. Abdul Razak A Hassan Al Qassim, the Bank’s Chief Executive Officer & Director said: “The focus during the year was to increase the business and revenue streams while exercising effective control over operating costs. 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 BD 55.37 million (US$ 147.26 million), showed a strong growth of 13.7% on account of better balance sheet management and improved yield on earning assets. Other Income at BD 24.55 million (US$ 65.29 million) showed a growth of 5.9% over the previous year. Operating expenses were carefully managed which showed a marginal increase of 3.0%, resulting in the Cost to Income Ratio improving from 35.9% in 2010 to 33.3% in 2011.

The total Balance Sheet of the Bank stood at BD 2,388.65 million (US$ 6,352.79 million) as at 31 December 2011 compared to BD 2,274.05 million (US$ 6,048.01 million) as at the previous year-end. Customers’ deposits at BD 1,905.49 million (US$ 5,067.80) showed a growth of 7.7% reflecting the success of our deposit mobilization initiatives. Total Earning Assets stood at BD 2,259.50 million (US$ 6,009.32 million) as at 31 December 2011 compared to BD 2,150.96 million (US$ 5,720.66 million) as at the previous year end, reflecting a steady growth of 5.0%. Capital Adequacy Ratio remains healthy at 25.1%. The Bank has a well diversified asset composition with strong liquidity.

Based on the above results, the Board of Directors has decided to recommend to the Shareholders’ General Assembly, the following appropriations:
Cash Dividend – 30% (2010: 30%) BD 25,660,800 (US$ 68,246,809)
Donations and Contributions BD 2,281,799 (US$ 6,068,614)

Total Shareholders’ Equity before 2011 appropriations stands at BD 274.73 million (US$ 730.67 million). The appropriations to Donations and Contributions will bring the total allocation under the programme to BD 29.40 million (US$ 78.19 million) since its inception in 1980. During the year, the Bank disbursed BD 2.51 million (US$ 6.68 million) for several worthy causes in the Kingdom of Bahrain.

Looking ahead, Mr. Qassim said: “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”.

   

Financial Summary

 

31 December 2011

31 December 2010

millions

millions

BD

US$

BD

US$

Net Interest Income

55.37

147.26

48.70

129.52

Other Income

24.55

65.29

23.18

61.65

Total Income

79.92

212.55

71.88

191.17

Total Operating Expenses

(26.61)

(70.77)

(25.83)

(68.70)

Total Provisions

(7.67)

(20.40)

(3.03)

(8.06)

Net Income

45.64

121.38

43.02

114.41

Cash Dividend 30% (2010: 30%*)

25.66

68.25

23.33

62.04

 

 

 

 

 

Loans & Advances

972.07

2,585.31

950.80

2,528.73

Investment Securities

650.21

1,729.27

656.22

1,745.27

Total Earning Assets (Treasury Bills, Bank Placements, Loans & Advances and Investment securities)

2,259.50

6,009.32

2,150.96

5,720.66

Customers' Deposits

1,905.49

5,067.80

1,768.47

4,703.39

Total Assets

2,388.65

6,352.79

2,274.05

6,048.01

Shareholders’ Equity

274.73

730.67

262.97

699.39

Earnings Per Share

53.4 fils

14 cents

50.3 fils

13 cents

* For 2010, the Bank also issued a one for ten bonus shares.

About National Bank of Bahrain:
National Bank of Bahrain was established in 1957 as the first indigenous bank in Bahrain. A nation-wide network of 25 branches, 55 ATMs in addition to our branches in Abu Dhabi and Riyadh makes NBB the leading provider of commercial and retail banking services in Bahrain.

Credit Ratings:

 

Foreign Currency

 

Moody’s

FSR
C-

Long Term
Baa1

Short Term
P2

 

Fitch

Individual
B/C

Long Term
BBB

Short Term
F3

Support
2

Capital Intelligence

Financial Strength
A

Long Term
BBB+

Short Term
A2

Support
1

For more information about National Bank of Bahrain, please contact Tuhin Roy Chowdhury or Sahar Mandeel, Corporate Communications Dept., tel: (00973) 17 228800 ext. 5405, fax: (00973) 17 211307, email: nbb@nbbonline.com or visit our website www.nbbonline.com.

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