NBB Q1 net profit at BD14.74 million
Manama : The National Bank of Bahrain (NBB) yesterday announced financial results for the first quarter of 2017, reporting a net profit of BD14.74 million (US$39.20m) compared to BD17.76m (US$47.23m) for the corresponding period of the previous year, a decrease of 17.0pc.
The bank achieved an Operating Profit of BD19.05m (US$50.66m) for the first quarter of 2017, an increase of 3.8pc over BD18.36m (US$48.83m) achieved during the first quarter of 2016.
Expressing his satisfaction on the improvement in the core business and operating profitability of the Bank, the Chairman Farouk Yousuf Khalil Almoayyed stated that the Bank’s Net Profit has been impacted by the need to take impairment on certain credit exposures due to financial difficulties faced by some borrowers.
Commenting on the bank’s performance and future outlook, Jean Christophe Durand, Chief Executive Officer said, “While the external environment continues to be challenging, we will actively pursue new business opportunities by capitalizing on our strong domestic franchise, capital base and liquidity”.
For the three-month period in 2017, the bank recorded Net Interest Income of BD17.11m (US$45.50m) compared to BD15.78m (US$41.97m) for the corresponding period of the previous year. The increase of 8.4pc is on account of growth in business and better yield on assets. The Earnings per share was 11.7 fils compared to 14.1 fils for the corresponding period of 2016.
Other income for the three months period was BD9.60m (US$25.53m) compared to BD10.47m (US$27.85m). While income from core business showed an increase, the decrease in total Other Income is attributable to higher dividend income on certain investments besides certain one-off income in the previous year.
Operating expenses decreased marginally from BD7.89m (US$20.98m) for the three months period in 2016 to BD7.66m (US$20.37m) for the three months period in 2017. As result of the growth in income outpacing increase in costs, the Cost to Income Ratio showed a decrease from 30.1pc in 2016 to 28.7pc in 2017. The bank took impairment provision of BD4.31m (US$11.46m) during the current year due to financial difficulties faced by some borrowers and the resultant inability to meet their obligations.
Steady progress has been achieved in the underlying business activities of the Bank with the Total Earning Assets (comprising of Treasury bills, Bank placements, Loans & Advances, Investment securities and Investment in Associates) increasing from BD2,784.19m (US$7,407.76m) as at 31 Mar 2016 to BD2,808.96m (US$7,470.64m) as at 31 Mar 2017.
Loans & Advances grew by 8.4pc during the 1st quarter of 2017 to reach BD1,118.85m (US$2,975.66m). Customer Deposits as at 31 Mar 2017 stood at BD2,143.16m (US$5,699.89m) compared to BD2,216.81m (US$5,895.77m) as at 31 Mar 2016.
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