MANAMA: National Bank of Bahrain (NBB) has achieved a net profit of BD13.22 million ($35.16m) for the first quarter of this year compared to BD13.70m ($36.44m) for the first three months of last year.
"The bank achieved satisfactory results in the context of banks aggressively competing for liquidity and against the backdrop of the negative developments in the financial sector consequent to the global financial crisis," said chief executive officer Abdul Razak Abdulla Hassan Al Qassim.
"The bank's steady performance, despite the 3.5 per cent reduction in net profit over the same period last year, is a testimony to our business strategies, adoption of longer-term view of business and our commitment to a sustainable business model in the interest of all our stakeholders."
The net interest income for the three months was BD11.71m ($31.14m) compared to BD12.42m ($33.03m) for the corresponding period the previous year.
The decline is attributable to lower yields on surplus liquidity consequent to a fall in market interest rates.
Other income increased by 2.7pc to BD8.02m ($21.33m).
While other income from core business activities continues to show growth, income from syndications and participation business declined due to a slowdown in market activities.
Operating expenses increased marginally from BD6.36m ($16.91m) to BD6.46m ($17.18m) as a result of growth in the underlying business activities.
On the business banking front, the bank focused more on increasing its exposure to the active sectors of the domestic economy.
As a result, loans and advances as on March 31 stood at BD1,108.63m ($2,948.48m) compared to BD1,102.45m ($2,932.05m) in the first quarter of last year. Customer deposits increased from BD1,437.08m ($3,822.02m) to BD1,560.76m ($4,150.96m), up 8.6pc.
The deposit products continue to offer competitive returns to customers, along with the convenience of banking with the largest network of branches and ATMs in the kingdom. Investment securities portfolio was BD408.29m ($1,085.88m) compared to BD446.40m ($1,187.23m) a year ago Earnings per share were 17 fils compared to 17.6 last time.