Financial Results For The Year 2015 - Press Release

Financial Results For The Year 2015 - Press Release

Mr. Farouk Almoayyed      Mr. Abdul Razak Abdulla Al Qassim

 

  • Net Profit of BD 55.26 million (US$ 146.97 million)
  • Dividend of 35% (25% cash & 10% stock) proposed [2014: 25% cash & 10% stock.

National Bank of Bahrain achieved a Net Profit of BD 55.26 million (US$ 146.97 million) in 2015, compared to BD 53.44 million (US$ 142.12 million) in 2014, an increase of 3.4%. For the fourth quarter of 2015, the Bank recorded a Net Profit of BD 11.90 million (US$ 31.65 million) compared to BD 11.28 million (US$ 30.00 million) for the corresponding period of the previous year, an increase of 5.5%. The Earnings Per Share (EPS) improved from 51.6 fils in 2014 to 53.3 fils in 2015.

At the Board of Directors meeting held on 25 January 2016, chaired by the Bank’s Chairman, Mr. Farouk Yousuf Khalil Almoayyed, the Board reviewed and approved the Bank’s financial results for the year 2015.

Expressing his satisfaction on the performance, the Bank’s Chairman Mr. Farouk Yousuf Khalil Almoayyed said “These results reflect our commitment to enhance shareholders returns while contribute positively to domestic economic growth”. Mr. Almoayyed thanked the Bank’s clients for their valued business relationship and the confidence reposed by them in the Bank and also appreciated the efforts of the executive management and the staff members for their dedicated service, commitment and all round efforts.

Mr. Abdul Razak A Hassan Al Qassim, the Bank’s Chief Executive Officer & Director said: “We are pleased to report a record Net Profit of BD 55.26 million (US$ 146.97 million) for the year 2015. 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 BD 59.52 million (US$ 158.30 million) compared to BD 59.58 million (US$ 158.44 million) for 2014. While total earning assets have shown a strong growth, continued softer market interest rates during most part of the year resulted in Net Interest Income remaining at the same level. Other Operating Income showed a strong growth of 17.7 % to BD 34.88 million (US$ 92.77 million) as a result of increase in business volumes, higher dividend and investment income besides increased contribution from the Bank’s associates.

Operating expenses increased marginally by 3.1% to reach BD 30.10 million (US$ 80.05 million) with a healthy Cost to Income Ratio of 31.9 %. An amount of BD 7.74 million (US$ 20.59 million) was set aside towards loan loss provision which includes BD 1.70 million (US$ 4.52 million) towards General Loan Loss Provision to strengthen the overall financial position. An amount BD 1.30 million (US$ 3.46 million) was set aside towards Equity impairment based on the ongoing assessment of the equity portfolio.

The total Balance Sheet of the Bank stood at BD 2,999.71 million (US$ 7,977.94 million) as at 31 December 2015 compared to BD 2,738.46 million (US$ 7,283.13 million) as at the previous year-end. Customers’ deposits continue to show steady growth which stood at BD 2,247.02 million (US$ 5,976.13) as at 31 December 2015, reflecting a growth of 4.3 %. Total Earning Assets stood at BD 2,837.94 million (US$ 7,547.69 million) as at 31 December 2015 reflecting a growth of 10.0 %, with Loans and Advances increasing from BD 780.97 million (US$ 2,077.05 million) as at previous year-end to BD 1,051.72 million (US$ 2,797.11 million) as at 31 December 2015, a healthy growth of 34.7 %. Capital Adequacy Ratio remains strong at 30.0 % before the proposed appropriations. 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 – 25 % (2014: 25%) BD 26.35 Million (US$ 70.08 Million)
Donations and Contributions BD 2.76 Million (US$ 7.34 Million)
Transfer to Statutory Reserve BD 0.96 Million (US$ 2.55 Million)
Transfer to General Reserve BD 15.81 Million (US$ 42.05 Million)

 

The Board has also proposed to the shareholders a bonus issue of BD 10.54 million at the rate of one additional share for every ten shares held (10%). The bonus share issue is proposed to be made through utilisation of BD 10.54 million from the General Reserve, which is subject to regulatory approvals. Total cash and stock dividend payouts for 2015 amounts to 35%.

     

Total Shareholders’ Equity before 2015 appropriations stands at BD 364.76 million (US$ 970.11 million). The appropriations to Donations and Contributions will bring the total allocation under the programme to BD 39.77 million (US$ 105.77 million) since its inception in 1980. During the year, the Bank disbursed BD 1.42 million (US$ 3.78 million) for several worthy causes in the Kingdom of Bahrain.

Looking ahead, Mr. 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.”

Financial Summary (Millions) 31 December 2015 31 December 2014
 
BD

US$

BD

US$
Net Interest Income 59.52 158.30 59.58 158.44
Other Income 34.88 92.77 29.63 78.79
Total Income 94.40 251.07 89.21 237.23
Total Operating Expenses (30.10) (80.05) (29.19) (77.62)
Total Provisions/impairment (9.04) (24.05) (6.58) (17.49)
Net Income 55.26 146.97 53.44 142.12
Cash Dividend 25% (2014: 25%) 26.35 70.08 23.52 62.55
Loans & Advances 1,051.72 2,797.11 780.97 2,077.05
Investment Securities 1,094.04 2,909.68 999.49 2,658.21
Total Earning Assets (Treasury Bills, Bank Placements,
Loans & Advances, Investment securities & Investment in Associates)
2,837.94 7,547.69 2,580.92 6,864.16
Customers' Deposits 2,247.02 5,976.13 2,154.85 5,730.98
 
Total Assets 2,999.71 7,977.94 2,738.46 7,283.13
 
Shareholders’ Equity 364.76 970.11 378.02 1,005.37
Earnings Per Share 53.3 fils 14 cents 51.6 fils 14 cents