BD 23.26 million (US$ 61.86 million) NBB Net Profit for 1st half of 2010

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11 July 2010
National Bank of BahrainNational Bank of Bahrain announced its financial results for the six months ended 30 June 2010. The Bank achieved a Net Profit of BD 23.26 million (US$ 61.86 million) for the six months of 2010 compared to BD 25.60 million (US$ 68.09 million) for the corresponding period of the previous year.

For the second quarter of 2010, the Bank recorded a Net Profit of BD 10.04 million (US$ 26.70 million) compared to BD 11.90 million (US$ 31.65 million) for the corresponding period of the previous year.

Mr. Abdulla Ali Kanoo, the Chairman of the Board, expressed his satisfaction with the results achieved by the Bank in the current challenging business environment despite a drop of 9.1 % in the Net Profit. He thanked the Bank's customers for their continued support and executive management and employees for their commitment and contribution to the Bank's success.

Commenting on the Bank's performance and future outlook, Mr. Abdul Razak Abdulla Hassan Al Qassim, Chief Executive Officer & Director said, "The overall financial performance of the Bank continues to be steady given the current environment. Profitability indicators remained strong with an Annualised Return on Equity of 19.3 % and Return on Asset of 2.1 %. NBBNBB continues to benefit from its prudent risk management, outstanding asset quality and sound liquidity position. The re-affirmation of all ratings by Capital Intelligence during the current quarter is a further testimony to our sound financial position. Our strong liquidity position coupled with a good growth in the deposit base places us in an advantageous position to capitalize on new business opportunities as they emerge in the future".

The Net Interest Income for the six months period in 2010 was BD 23.48 million (US$ 62.45 million) compared to BD 25.14 million (US$ 66.86 million) for the corresponding period of the previous year. The decline in the Net Interest Income is attributable to lower yield on surplus liquidity consequent to fall in market interest rates. Other income increased by 2.8 % to BD 13.69 million (US$ 36.41 million). Income from core business activities continues to show growth as a result of increase in the underlying business activities.

Operating expenses increased marginally from BD 12.69 million (US$ 33.75 million) for the six months period in 2009 to BD 12.85 million (US$ 34.18 million) for the six months period in 2010 as a result of growth in the underlying business activities.

The Bank continues to focus on the active sectors of the domestic economy while selectively seeking regional business. As a result, Loans and advances as at 30^th June 2010 stood at BD 1,107.17 million (US$ 2,944.60 million) compared to BD 1,153.22 million (US$ 3,067.07 million) as at 30^th June 2009. An enlarged and diversified customer base led to a strong growth in Customer deposits which increased from BD 1,433.77 million (US$ 3,813.22 million) as at 30^th June 2009 to BD 1,826.65 million (US$ 4,858.11 million) as at 30^th June 2010, a growth of 27.4%. The Bank's investment securities portfolio as at 30^th June 2010 was BD 476.76 million (US$ 1,267.98 million) compared to BD 376.21 million (US$ 1,000.56 million) as at 30^th June 2009.

The Earnings per share for the six months of 2010 was 29.9 fils compared to 32.9 fils for the six months of 2009.

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About National Bank of BahrainNational Bank of Bahrain:
National Bank of BahrainNational Bank of Bahrain was established in 1957 as the first indigenous bank in Bahrain. A nation-wide network of 24 branches, 54 ATMs in addition to our branches in Abu Dhabi and Riyadh makes NBBNBB the leading provider of commercial and retail banking services in Bahrain.

For more information please contact:
Tuhin Roy Chowdhury
Sahar Mandeel
Corporate Communications Dept.,
tel: (00973) 17 228800 ext. 5405,
fax: (00973) 17 211307,
email: nbb@nbbonline.com
website: www.nbbonline.com.

© Press Release 2010