NBB net profit hits BD31.74m in first half
Manama : The National Bank of Bahrain (NBB) recorded a Net Profit of BD31.74 million (US$84.41m) for the six months ended 30 June 2017 compared to BD31.72m (US$ 84.36m) for the corresponding period of 2016.
During the 1st half of 2017, the bank achieved an Operating Profit of BD38.01m (US$101.09m), an increase of 6.6 per cent over BD35.66m (US$94.84m) achieved during the corresponding period of 2016. For the second quarter of 2017, the Bank recorded a Net Profit of BD17.00m (US$45.21m), a strong increase of 21.8 per cent compared to BD 13.96m (US$37.13m) for the corresponding period of the previous year.
The financial results were approved at the Board meeting held on 19th July 2017 chaired by the Bank’s Chairman Farouk Yousuf Khalil Almoayyed.
Commenting on the Bank’s performance, Jean Christophe Durand, Chief Executive Officer said, “The Bank’s focus on new business initiatives and increasing the customer footprint resulted in a strong improvement in the Operating Profit for 2017. As a result, the Bank recorded a marginal increase in Net Profit despite the need to take impairment on certain credit exposures due to financial difficulties faced by some borrowers”.
The Net Interest Income for the six months period in 2017 was BD34.95m (US$ 92.95m) compared to BD31.82m (US$84.63m) for the corresponding period of the previous year, an increase of 9.8pc. The increase in Net Interest Income is attributed to growth in earning assets and better asset liability management leading to an improvement in net interest margin.
Other income for the six months period in 2017 was BD18.67m (US$49.65m) compared to BD19.70m (US$52.39m) for 2016. The decrease in Other Income was due to certain income from sale of investments in the previous year while such opportunities were not available during the current year.
However, core banking activities continue to show steady increase with Commission from such activities recording a strong growth of 17.1 per cent.
Operating expenses continue to be closely managed which decreased from BD15.86m (US$42.18m) for the six months period in 2016 to BD15.61m (US$41.52m) for the six months period in 2017. As a result, the Cost to Income Ratio improved from 30.8pc in 2016 to 29.1pc in 2017. The Bank took impairment provision of BD6.27m (US$16.68m) during the current year due to financial difficulties faced by some borrowers and the resultant inability to meet their obligations.
Total Earning Assets (comprising of Treasury bills, Bank placements, Loans & Advances, Investment Securities and Investment in associates) remained steady at BD 2,824.61m (US$ 7,512.26m) as at 30 June 2017 compared to BD2,817.38m (US$ 7,493.03m) as at 30 June 2016.
Customer Deposits stood at BD2,143.04m (US$ 5,699.57m) as at 30 June 2017 compared to BD2,195.90m (US$ 5,840.16m) as at 30 June 2016.
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