NBB Financial Results For The Year 2014 - Press Release

NBB Financial Results For The Year 2014 - Press Release

  • Net Profit of BD 53.44 million (US$ 142.12 million)
  • Dividend of 35% (25% cash & 10% stock) proposed [2013: 35% cash]

   

National Bank of Bahrain achieved a Net Profit of BD 53.44 million (US$ 142.12 million) in 2014, compared to BD 51.36 million (US$ 136.60 million) in 2013, an increase of 4.0%. For the fourth quarter of 2014, the Bank recorded a Net Profit of BD 11.28 million (US$ 30.00 million) compared to BD 11.27 million (US$ 29.97 million) for the corresponding period of the previous year. The Earnings Per Share (EPS) improved from 54.6 fils in 2013 to 56.8 fils in 2014.

Expressing his satisfaction on the performance, the Bank’s Chairman Mr. Farouk Yousuf Khalil Almoayyed said “these results reflect the sustained progress made by the Bank and our ability to enhance returns to our shareholders”. 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 Net Profit of BD 53.44 million (US$ 142.12 million), the highest ever achieved by the Bank. 2014 was another successful year for the Bank and we continue to maintain growth momentum backed by a healthy balance sheet and a strong capital position”.

Net Interest Income for the year at BD 59.58 million (US$ 158.44 million), showed a marginal decrease of 0.4 % 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. Other Operating Income showed a strong growth of 19.3 % to BD 29.63 million (US$ 78.79 million) as a result of increase in business volumes, higher dividend on the Bank’s investments besides increased contribution from the Bank’s associates. Operating expenses increased by 6.3% to reach BD 29.19 million (US$ 77.62 million), the increase largely on account of contribution to the Deposit Protection Fund effective 2014 as mandated by the Central Bank of Bahrain. An amount of BD 6.08 million (US$ 16.17 million) was set aside towards loan loss provision and BD 0.50 million (US$ 1.32 million) towards Equity impairment based on the ongoing assessment of the respective portfolios.

The total Balance Sheet of the Bank stood at BD 2,738.46 million (US$ 7,283.13 million) as at 31 December 2014 compared to BD 2,749.23 million (US$ 7,311.76 million) as at the previous yearend. Customers’ deposits continue to show steady growth which stood at BD 2,154.85 million (US$ 5,730.98) as at 31 December 2014, reflecting a growth of 3.4 %. Total Earning Assets stood at BD 2,580.92 million (US$ 6,864.16 million) as at 31 December 2014 compared to BD 2,596.84 million (US$ 6,906.45 million) as at the previous year end. Capital Adequacy Ratio remains healthy at 34.3 % 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 % (2013: 35%) BD 23,522,400 (US$ 62,559,574)
Donations and Contributions BD 2,671,885 (US$ 7,106,077)
Transfer to General Reserve BD 14,113,440 (US$ 37,535,745)

 

The Board has also proposed to the shareholders a bonus issue of BD 9.41 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 9.41 million from the General Reserve, which is subject to regulatory approvals. Total cash and stock dividend payouts for 2014 amounts to 35%.

Total Shareholders’ Equity before 2014 appropriations stands at BD 378.02 million (US$ 1,005.37 million). The appropriations to Donations and Contributions will bring the total allocation under the programme to BD 37.01 million (US$ 87.43 million) since its inception in 1980. During the year, the Bank disbursed BD 0.99 million (US$ 2.63 million) for several worthy causes in the Kingdom of Bahrain.

Looking ahead, Mr. Qassim said: “As we head into 2015, there are significant uncertainties particularly for the region with lower oil prices challenging growth prospects. We are hopeful the regional authorities will effectively utilise the surplus funds accumulated over the years along with the required policy initiatives to maintain growth. 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

  31 December 2014 31 December 2013
  BD US$ BD US$
Net Interest Income 59.58 158.44 59.82 159.09
Other Income 29.63 78.79 24.83 66.05
Total Income 89.21 237.23 84.65 225.14
Total Operating Expenses (29.19) (77.62) (27.45) (73.01)
Total Provisions/impairment/Tax (6.58) (17.49) (5.84) (15.53)
Net Income 53.44 142.12 51.36 136.60
Cash Dividend 25% (2013: 35%) 23.52 62.56 32.93 87.58
Loans & Advances 780.97 2,077.05 859.39 2,285.61
Investment Securities 999.49 2,658.21 997.72 2,653.50
Total Earning Assets (Treasury Bills, Bank Placements, Loans & Advances, Investment securities & Investment in Associates) 2,580.92 6,864.16 2,596.84 6,906.45
Customers' Deposits 2,154.85 5,730.98 2,083.54 5,541.33
Total Assets 2,738.46 7,283.13 2,749.23 7,311.76
Shareholders’ Equity 378.02 1,005.37 363.14 965.80
Earnings Per Share 56.8 fils 15 cents 54.6 fils 15 cents