NBB Financial Results For The Year 2013 - Press Release

NBB Financial Results For The Year 2013 - Press Release

  • Record Net Profit of BD 51.36 million (US$ 136.60 million), increase of 8.1% over 2012
  • Cash Dividend of 35 % proposed [2012: 25% cash & 10% stock]

   

National Bank of Bahrain achieved a Net Profit of BD 51.36 million (US$ 136.60 million) in 2013, compared to BD 47.50 million (US$ 126.33 million) recorded in 2012, an increase of 8.1%. For the fourth quarter of 2013, the Bank recorded a Net Profit of BD 11.27 million (US$ 29.97 million) compared to BD 10.47 million (US$ 27.85 million) for the corresponding period of the previous year, an increase of 7.6%. The Earnings Per Share (EPS) improved from 50.5 fils in 2012 to 54.6 fils in 2013.

At the Board of Directors meeting held on 21 January 2014, chaired by the Bank’s Chairman, Mr. Farouk Yousuf Khalil Almoayyed, the Board reviewed and approved the Bank’s financial results for the year 2013.

   

Expressing his satisfaction on the performance, the Bank’s Chairman Mr. Farouk Yousuf Khalil Almoayyed said “these strong results demonstrate successful implementation of the Bank’s business strategies in the interest of all our stakeholders”. 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.

Commenting on the record profitability achieved during the year, Mr. Abdul Razak A Hassan Al Qassim, the Bank’s Chief Executive Officer & Director said: “This is a clear reflection of the Bank’s strength in generating steady revenue streams while efficiently managing operating costs in addition to containing loan loss provisions”.

Net Interest Income for the year at BD 59.82 million (US$ 159.09 million), showed a decrease of 3.4 % over the previous year on account of lack of growth in commercial lending opportunities and reduced returns on surplus liquidity due to low short term interest rates. Higher Exchange Income and realized profit on investments has been partly off-set by lower Commission and dividend income on the Bank’s equity investments, resulting in a modest growth of 0.6% in Other Income which stood at BD 24.83 million (US$ 66.05 million). Operating expenses continue to be carefully managed resulting in a marginal increase of 0.4% compared to the previous year. An amount of BD 5.28 million (US$ 14.04 million) was set aside towards loan loss provision to further strengthen the balance sheet. Tax expense amounting to BD 0.21 million (US$ 0.56 million) represents tax on the income of one of the overseas branches based on applicable tax regulations.

The total Balance Sheet of the Bank stood at BD 2,749.23 million (US$ 7,311.76 million) as at 31 December 2013 compared to BD 2,654.56 million (US$ 7,060.00 million) as at the previous year-end. Customers’ deposits continue to show steady growth which stood at BD 2,083.54 million (US$ 5,541.33) as at 31 December 2013. Total Earning Assets stood at BD 2,596.84 million (US$ 6,906.45 million) as at 31 December 2013 compared to BD 2,515.83 million (US$ 6,691.04 million) as at the previous year end, reflecting a growth of 3.2%. Capital Adequacy Ratio remains healthy at 31.2 % 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 – 35 % (2012: 25%) BD 32,931,360 (US$ 87,583,404)
Donations and Contributions BD 2,568,158 (US$ 6,830,207)

Based on the current market price, the above results in a Dividend yield of 4.8%.

Total Shareholders’ Equity before 2013 appropriations stands at BD 363.14 million (US$ 965.80 million). The appropriations to Donations and Contributions will bring the total allocation under the programme to BD 34.34 million (US$ 91.33 million) since its inception in 1980. During the year, the Bank disbursed BD 0.95 million (US$ 2.54 million) for several worthy causes in the Kingdom of Bahrain.

Looking ahead, Mr. Qassim said: “NBB with a strong capital base, adequate liquidity and the largest distribution network is well positioned to capitalize on increased business opportunities against the backdrop of an anticipated recovery in the global and domestic economy. 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 2013 31 December 2012
  BD USD BD USD

Net Interest Income

59.82 159.09 61.92 164.68
Other Income 24.83 66.05 24.69 65.66
Total Income 84.65 225.14 86.61 230.34
Total Operating Expenses (27.45) (73.01) (27.34) (72.71)
Total Provisions/impairment/Tax (5.84) (15.53) (11.77) (31.30)
Net Income 51.36 136.60 47.50 126.33
Cash Dividend 35 % (2012: 25%) 32.93 87.58 21.38 56.87
 
Loans & Advances 859.39 2,285.61 888.25 2,362.37
Investment Securities 997.72 2,653.50 757.83 2,015.50
Total Earning Assets (Treasury Bills, Bank Placements, Loans & Advances, Investment securities & Investment in Associates) 2,596.84 6,906.45 2,515.83 6,691.04
Customers' Deposits 2,083.54 5,541.33 2,077.90 5,526.34
Total Assets 2,749.23 7,311.76 2,654.56 7,060.00
Shareholders’ Equity 363.14 965.80 318.94 848.24
 
Earnings Per Share 54.6 fils 15 cents 50.5 fils 13 cents