The Annual General Meeting of the shareholders of National Bank of Bahrain was held on 3rd March 2010.
Addressing the shareholders, the Bank’s Deputy Chairman Mr. Farouk Yousuf Khalil Almoayyed stated “Against the backdrop of the global financial crisis and a challenging regional environment, the Bank achieved realistic growth during the year in line with its long term objective of delivering consistent returns without compromising on risks. The strategy during the year was to focus on increasing business in the domestic market resulting in increased earnings from growth in core banking businesses. The results reflect improvement in earnings while efficiently managing operating expenses. Accordingly, the results reflect a Net Profit of BD 42.82 million in 2009 compared to BD 34.74 million in 2008, an increase of 23.3 percent”.
Mr. Abdul Razak Al Qassim, Chief Executive Officer and Director stated that the Bank’s strategy of positioning NBB’s balance sheet to focus on core commercial banking activities has been rewarding over the years. The Bank has stayed focused on the basics of banking and by sticking to its values and culture have shown resilience throughout this difficult period and proved its ability to consistently meet its strategic priorities. He added that the Bank tactically shifted focus to the domestic economy to support growth. As a result, the main businesses of the Bank performed well and delivered sustainable increased in underlying operating revenue. The results reflect improvement in credit spread, success of mobilizing core cost effective deposits and revenue diversification while efficiently managing operating expenses.
Looking ahead, Mr. Qassim added that “the Bank’s focus will be on core commercial banking activities in the active sectors of the domestic economy and improve market share. We look forward positively to the opportunities that are available in Bahrain, considering its position as the gateway to the northern Gulf and the potential benefits from the economic integration of a GCC wide single market. We do not underestimate the challenges and will engage and deepen our relationship with clients to win market share and enhance our competitive positioning. We believe the strength of our franchise, sound fundamentals and market image as the leading provider of financial services in the Kingdom will enable us to achieve this goal.”
As you know, the Extraordinary General Assembly of the Bank, during its meeting held on 12 October 2008, approved increasing the Bank's capital, and fixed the price of the share at 645 fils, and accordingly authorized the Board of Directors to choose the ideal time to issue of new shares. However, given the unfavourable economic conditions which the global and local markets have witnessed recently, the Board of Directors has decided to postpone the plan until the situation improves.
This year, the Board is recommending the allocation of BD 2,141,106 to the Donations and Contributions programme, representing 5 per cent of 2009 profits available for distribution. The cumulative allocation under the programme, since its inception in 1980, is now BD 24.97 million).
In conclusion, and on behalf of all of you, I take this opportunity to express my deepest gratitude and sincere appreciation to His Majesty King Hamad bin Isa Al Khalifa - the King of Bahrain, to His Royal Highness Shaikh Khalifa bin Salman Al Khalifa - the Prime Minister, to His Royal Highness Shaikh Salman bin Hamad Al Khalifa - the Crown Prince and Deputy Supreme Commander, Government ministries and institutions- especially the Ministry of Finance and the Central Bank of Bahrain, for their guidance, kind consideration and support.
The Directors also extend their thanks and appreciation to the staff of the Bank whose dedicated service and commitment has played a vital role in the achievements of the Bank over the years and to all our valued customers and friends for their continuous support and the confidence reposed by them in the National Bank of Bahrain.