National Bank of Bahrain profit hits record $44.6m

National Bank of Bahrain yesterday said its net profit increased to a record level of $44.60 million, and declared 30 per cent dividend. The bank said it maintained profit growth with net income rising from $43.37 million in 1999 to $44.60 million last year. The performance resulted from higher revenues from the core commercial banking business, reflected in continued growth in retail and corporate loans and deposits.

However, the higher income from the core business was partly offset by lower profits from trading and investment activities owing to the high volatility in international financial markets and reduced level of treasury activity within the bank. Operating expenses remained tightly controlled, rising marginally by $0.99 million, or 3 per cent over the previous year to $33.78 million. As a result, net income before provisions was $45.52 million for the year 2000 as against $49.33 million the previous year.

The bank's managing director Hassan Ali Juma, said, "the successful implementation of strategic plans and growth in core business, has enabled the bank to continue to maintain its growth momentum in 2000, though performance was partly impacted by lower income from treasury related activities."

The bank has also been successful in raising the level of return for the shareholders, as reflected in an increase in the earnings per share to 42 fills per share, as compared with 41 fills per share in the previous year. At the year-end, the bank's total assets stood at $2,753.38 million, an increase of 5 per cent compared with $2,628.09 million in 1999.

The growth of total assets resulted from an expansion of the loans and advances portfolio in Bahrain and the Gulf and an increase in the investment securities portfolios in international markets. Customer deposits registered an increase of 11 per cent to $1,780.73 million due to higher retail and corporate deposits. After taking the appropriations into account, the total shareholders' equity will amount to $286.09 million.