National Bank of Bahrain (NBB) announced a record net profit of $ 114.41 million for the year 2010 compared to a net profit of $113.89 million recorded in 2009.
The board meeting which chaired by the Chairman Farouk Yousuf Khalil Almoayyed reviewed and approved bank’s financials for the year 2010.
The board proposed a cash dividend $62 million equal to 30% (2009: 35%) and donations and contributions $ 5.7 million in addition to transferring $31 million to general reserve.
The board has also proposed to the shareholders a bonus issue of BD 7.78 million at the rate of one additional share for every ten shares held (10%). The bonus share issue is proposed to be made through utilisation of BD 7.78 million from the General Reserve, which is subject to regulatory approvals. Total cash and stock dividend payouts for 2010 amounts to 40%.
The bank also announced taking a voluntary general loan loss provision of $3.99 million in line with its policy of building a stronger balance sheet in 2010.
For the fourth quarter of 2010, the bank recorded a net profit of $ 23.91 million compared to a $ 15.61 million for the corresponding period of the previous year, an increase of 53.2%.
“The bank achieved steady growth and maintained its profitability during the year despite the challenges faced both globally and regionally in the aftermath of the financial crisis,” the bank’s Chairman Farouk Yousuf Khalil Almoayyed in a statement said.
“During the year, the bank continued its policy of supporting initiatives aimed at developments in the Kingdom of Bahrain and lead managed some important deals in client funding, both in the debt and equity markets besides expanding its retail presence,” Abdul Razak A Hassan Al Qassim, the bank’s Chief Executive Officer and Director said.
“The performance for the year is the result of the Bank’s focus on maintaining asset quality, judicious deployment of available liquidity at best possible yields and efficiently managing the operating expenses. Although there was no major deterioration in the Bank’s asset quality, the Bank on its own initiative decided to increase the level of general loan loss provisions in line with our prudent approach to risk taking into account the difficulties in the overall external credit environment.”
Total shareholders’ equity before 2010 appropriations stands at $ 699.39 million. The appropriations to donations and contributions will bring the total allocation under the programme to $72.13 million since its inception in 1980. During the year, the bank disbursed $ 2.34 million for several worthy causes in the Kingdom of Bahrain.
“The bank is conscious of its social responsibility and continues with its commitment to serve the community at large and contribute to the welfare of the citizens in the Kingdom of Bahrain,” the Chairman added.
“As we enter 2011 with hope and optimism, we are well aware of the challenges that lie ahead and are fully focused on keeping our valued customers at the centre of all our business initiatives. Over the years, we have positioned NBB to meet the growing needs of our customers and firmly believe that our well-established brand franchise in the Kingdom, liquidity position and time-tested business principles will enable us to achieve our strategic goals,” Al Qassim said.