Thursday 20, April 2017 by Nabilah Annuar

National Bank of Bahrain reports BHD 14.74 million in profits for the first quarter

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.

National Bank of Bahrain recorded a Net Profit of BHD 14.74 million ($39.20 million) for the first quarter of 2017 compared to BHD 17.76 million ($47.23 million) for the corresponding period of the previous year, a decrease of 17.0 per cent.

 

The Bank achieved an Operating Profit of BHD 19.05 Million ($50.66 Million) for the first quarter of 2017, an increase of 3.8 per cent over BHD 18.36 million ($48.83 million) achieved during the first quarter of 2016.

 

The financial results were approved at the Board meeting held on 19 April 2017 chaired by the Bank’s Chairman, Farouk Yousuf Khalil Almoayyed. Expressing his satisfaction on the improvement in the core business and operating profitability of the Bank, the Chairman 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.

 

Almoayyed thanked the Bank’s customers for their continued support and confidence in the Bank while appreciating the efforts of the Bank’s executive management team and the employees for their dedication.

 

Commenting on the Bank’s performance and future outlook, Jean Christophe Durand, Chief Executive Officer said, “The Bank’s strategy of actively pursuing growth objectives through diligent deployment in the local economy is progressing as planned with growth in the underlying business and revenue streams. While the external environment continues to be challenging, we will actively pursue new business opportunities by capitalising on our strong domestic franchise, capital base and liquidity”.

 

The Net Interest Income for the three months period in 2017 was BHD 17.11 million ($45.50 million) compared to BHD 15.78 million ($41.97 million) for the corresponding period of the previous year. The increase of 8.4 per cent is on account of growth in business and better yield on assets. Other income for the three months period in 2017 was BhD 9.60 million ($25.53 million) compared to BHD 10.47 million ($27.85 million). 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 BHD 7.89 million ($20.98 million) for the three months period in 2016 to BHD 7.66 million ($20.37 million) 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 30.1 per cent in 2016 to 28.7 per cent in 2017. The Bank took impairment provision of BHD 4.31 million ($11.46 million) 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 BHD 2,784.19 million ($7,407.76 million) as at 31 March 2016 to BHD 2,808.96 million ($7,470.64 million) as at 31 March 2017. Of particular importance is the growth in Loans & Advances by 8.4 per cent during the 1st quarter of 2017 to reach BHD 1,118.85 million ($ 2,975.66 million) as the Bank focuses on supporting domestic growth. Customer Deposits as at 31 March 2017 stood at BHD 2,143.16 million ($5,699.89 million) compared to BHD 2,216.81 million ($ 5,895.77 million) as at 31 March 2016.

 

The Earnings per share for the three months of 2017 was 11.7 fils compared to 14.1 fils for the corresponding period of 2016.

Features & Analyses