NBB's net profit surges 5.2pc to $112.1 million

31/10/2014 10:11 AST

NBB's net profit rose 5.2 per cent to BD42.16 million ($112.13m) for the nine months ended September 30, compared with BD40.09m for the corresponding period of the previous year.

For the third quarter of this year, the bank recorded a net profit of BD13.42m, compared with BD13.32m for the same period last year.

The financial results were approved at a board meeting chaired by chairman Farouk Almoayyed yesterday.

He said that the board was encouraged by the steady progress achieved by the bank.

"The bank continues to focus on increasing its market presence, the results of which are reflected in growth in earning assets, particularly loans, and the underlying revenue streams," NBB chief executive and director Abdul Razzak Al Qassim said.

"While mixed signals are emerging in terms of growth prospects for the global and regional economies, we will focus on increasing our business to further consolidate our position," he added.

The net interest income for the nine months period this year was BD45.31m, compared with BD43.61m for the corresponding period of the previous year, the increase resulting from the growth in earning assets and better liability management.

Other income for the first nine months of this year showed a growth of 14.4pc to BD22.55m, compared with BD19.71m for the corresponding period last year.

The growth has been achieved as a result of increase in core banking activities, higher dividend income and increased contribution from the bank's associates.

Operating expenses increased from BD20.45m in the nine months of 2013 to BD22.04m this year mainly on account of contribution to the deposit protection scheme besides normal increases to meet ongoing business requirements. The bank took an impairment provision of BD3.06m during the current year to further strengthen the overall financial position. The bank continues to make steady progress with the total earning assets - comprising treasury bills, bank placements, loans and advances, securities and investment in associates - as on September 30 this year at BD2,759.26m, compared with BD2,514.28m in the same period last year. Customer deposits as on September 30 this year stood at BD2,184.14m, compared with BD2,118.47m in the same period last year. The earnings per share for the nine months of this year was 44.8 fils compared with 42.6 fils for the corresponding period last year.

Gulf Daily News