2012 Second Quarter Results - Press Release

2012 Second Quarter Results - Press Release

Key Highlights:

  • YTD June 2012 Net Profit BD 25.10 million, up by 4.2 % over the previous year.
  • YTD June 2012 Profit before provisions BD 32.16 million, up by 24.3 % over the previous year.
  • Cost to Income Ratio 30.09 %, improved from 33.82 % for the previous year.
  • Total Customer Deposits BD 1,940.24 million, up by 14.3 % over June 2011.
  • Total Earning Assets BD 2,322.02 million, up by 15.6 % over June 2011.

   

The Bank recorded a Net Profit of BD 25.10 million (US$ 66.76 million) for the six months ended 30 June 2012 compared to BD 24.09 million (US$ 64.07 million) for the corresponding period of the previous year, an increase of 4.2 %. This is after setting aside BD 6.06 million (US$ 16.12 million) towards general loan loss provision to strengthen the balance sheet and BD 1.00 million (US$ 2.66 million) towards impairment on equity investments. For the second quarter of 2012, the Bank recorded a Net Profit of BD 10.99 million (US$ 29.23 million) compared to BD 10.45 million (US$ 27.79 million) for the corresponding period of the previous year, an increase of 5.2%.

The financial results were approved at the Board meeting held on 11th July 2012 chaired by the Bank’s Deputy Chairman Dr. Essam Abdulla Fakhro. Expressing his satisfaction on the results, Dr. Fakhro commented that the Bank achieved steady progress despite a slower global economic growth environment. Dr. Fakhro thanked and 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 strong growth in income is a result of our emphasis on booking quality assets and diversify the revenue streams by enhancing customer relationship, while efficiently managing the overall balance sheet. Looking ahead, we will continue to focus on new business opportunities and meet the expectations of our customers.”

The Net Interest Income for the six months period in 2012 was BD 31.54 million (US$ 83.88 million) compared to BD 26.84 million (US$ 71.38 million) for the corresponding period of the previous year, a strong growth of 17.5 % which is attributable to growth in earning assets and better balance sheet management. Other income for the six months period in 2012 was BD 14.46 million (US$ 38.46 million) compared to BD 12.25 (US$ 32.58 million) for the corresponding period of the previous year, an increase of 18.0%, resulting from increased business volumes. Operating expenses were well managed with a modest increase of 4.7 % during the year. As a result, Cost to Income Ratio for the six months period in 2012 improved to 30.09 % from 33.82 % for the corresponding period of the previous year. The Bank took a general loan loss provision of BD 6.06 million (US$ 16.12 million) during the current year to strengthen the overall balance sheet position. An amount of BD 1.00 million (US$ 2.66 million) was charged during the period towards impairment on equity investments due to declining stock market valuations.

Total Earning Assets (comprising of Treasury bills, Bank placements, Trading securities, Loans & Advances and Investment securities) as at 30 June 2012 stood at BD 2,322.02 million (US$ 6,175.59 million) compared to BD 2,008.05 million (US$ 5,340.56 million) as at 30 June 2011. Customer Deposits continue to show strong growth and stood at BD 1,940.24 million (US$ 5,160.21 million) as at 30 June 2012 compared to BD 1,697.42 million (US$ 4,514.41 million) as at 30 June 2011, an increase of 14.3%.

The Earnings per share for the six months of 2012 was 29.3 fils compared to 28.2 fils for the corresponding period of 2011.

Financial Summary (30 June) (in Millions)

 

 

2012
BD
2012
USD
2011
BD
2011
USD

Loans and advances

915.90 2,435.90 849.99 2,260.61
Investment securities 577.28 1,535.32 573.28 1,524.68
Total Earning Assets (Treasury Bills, Bank Placements, Trading securities, Loans & Advances and Investment securities) 2,322.02 6,175.59 2,008.05 5,340.56
Customers’ deposits 1,940.24 5,160.21 1,697.42 4,514.41
Total assets 2,447.79 6,510.08 2,129.25 5,662.90
         
Net Profit 25.10 66.76 24.09/td> 64.07
         
Earnings per share 29.3 fils 7.8 cents 28.2 fils 7.5 cents
Annualised return on average equity 17.9 % 17.9 % 18.4 % 18.4 %

 

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, 59 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

Viability Rating
bbb
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: [email protected] or visit our website nbbonline.com.