National Bank of Bahrain's first quarter profits up by 11 percent
The National Bank of Bahrain (NBB) has announced its financial results for the first quarter of the year 2002, which ended March 31. The Bank maintained good earnings growth with net income for the first quarter of 2002 rising to 7.23 million Bahraini dinars ($19.15 million), an increase of 11.4 percent against first quarter 2001 net income of BD6.49 million.
Net income before provisions also grew by 16.5 percent from BD6.49 million in the first quarter of 2001 to BD 7.56 million in the first quarter of 2002.
BBK Managing Director Hassan Juma attributed the growth in net income mainly to an increase in total income from BD9.97 million to BD10.98 million, resulting from higher other income which increased from BD3.97 million in the first quarter of 2001 to BD4.75 million in the first quarter of 2002 and higher net interest income which increased by 3.8 percent from six million BD in the first quarter of 2001 to BD 6.23 million in the first quarter of 2002.
“The increase in other income is attributable to good commission income from our core businesses, a good treasury performance and revival of our investment advisory and assets management activities,” Juma stated
He added that “the first issue of Capital Protected Note received an overwhelming response from our customers. We have recently launched another series of such notes. The increase in net interest income resulted from continued expansion of the Bank's core businesses, namely retail and corporate banking and improvement in interest rate spreads.”
Loans and advances at March-end 2002 stood at BD446.03 million as compared to BD454.07 million March 31, 2001. This marginal decrease is a result of a conscious reduction in the Bank's exposures to certain market segments in accordance with the Bank's credit risk strategies, according to a company press release which went on to say: “We remain set to participate in the major projects expected to take off this year in Bahrain.”
The customers' deposits as of March 31, 2002, stood at BD685.93 million, higher by 2.5 percent as compared to BD669.33 million at March 31, 2001. On the investing activities, against a background of uncertain international markets, the Bank reduced its investment securities portfolio from BD183.98 million as at March 31, 2001, to BD 163.76 million as at March-end 2002.
The Bank's results reflected an improved return for the shareholders, with an earnings per share of 18.1 fils for the first quarter of 2002, as compared to 16.2 fils for the first quarter of the previous year. The annualized return on average equity during the first quarter of 2002 amounted to 20 percent. — (menareport.com)
© 2002 Mena Report (www.menareport.com)