Manama: National Bank of Bahrain (NBB) yesterday reported an increase of 6.9 per cent in net profit at BD31.72 million ($84.36m) for the six months ended June 30 when compared with BD29.67m ($78.91m) for the same period last year.
A statement issued after approval of the financials by the bank’s board of directors said, for the second quarter, the net profit saw a 10.4pc increase to BD13.96m from BD12.65m for the same quarter last year.
The statement quoted deputy chairman Dr Essam Abdulla Fakhro, who chaired the board meeting, as saying that the results were “excellent, particularly in such challenging times”.
Net interest income for the six month period was up by 9.3pc to BD31.82m compared with BD29.10m for the corresponding period of the previous year.
The increase was due to strong growth in loans and advances and higher yield on surplus funds.
Other income was BD19.70m as against BD21.90m earlier – the decrease due to capital gains on sale of certain fixed rate investments in the previous year which was not available this year due to prevalent market conditions. However, income from other core activities continues to show steady increase, the bank said.
In addition, NBB realised a profit of BD3.89m from sale of equity investments during the second quarter this year. Operating expenses, said the bank, continue to be closely managed.
They increased from BD15.06m for the first six months last year to BD15.86m for the same period this year, mainly to cater to increased business requirements.
The bank also took a general loan loss provision of BD1m during the second quarter to further strengthen the balance sheet.
Continued decline in stock market valuations resulted in an impairment charge on equity investments of BD2.45m for the current year.
Core business continues to show steady growth with total earning assets (comprising treasury bills, bank placements, loans and advances, investment securities and investment in associates) at BD2,817.38m as of June 30 as against BD2,731.20m as of June 30 last year, said the bank.
Similarly, customer deposits stood at BD2,195.90m as against BD2,227.68m earlier. Earnings per share for the six month period improved to 27.7 fils from 26 fils for the corresponding period of 2015.
Similarly, return on average equity improved to 17.9pc from 15.6pc earlier.
Director and chief executive Abdul Razak Al Qassim said there was a “strong growth in profitability and business” during the period under review.
“Despite difficult market conditions, the bank’s improved performance is an outcome of our ability to adapt to changing market dynamics while continuing to keep customers interest at the forefront,” he added.
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