MANAMA: With real estate is on the rebound in the Kingdom of Bahrain, the NBB Chairman on Monday confirmed that the bank was expecting to generate BD13million at an initial investment of BD42 million in Riffa Views project.
The bank’s Chairman Farouk Yousuf Khalil Almoayyed on the sidelines of the NBB Annual General Meeting (AGM) told The24X7News (www.twentyfoursevennews.com) that the bank had invested BD42 million in Riffa Views.
“NBB has 170 units in Riffa Views and we are seeking the completion of some units as quickly as possible and wants to exit from this project,” he added.
“With real estate demand is on the rise, NBB feels it is a right time to exit with expected total income of BD55million, which includes BD13million projected as interest income,” Almoayyed said.
Talking about the expansion plans, he said that the bank had applied for opening branches in all GCC countries but so far NBB Riyadh and NBB Abu Dhabi branches were opened.
“Our Saudi operations have been exceptionally well and Abu Dhabi business is yet to reach at a full throttle by the year end,” Almoayyed, added.
“National Bank of Bahrain achieved strong financial results for 2013 with the Net Profit increasing by 8.1 percent to reach BD 51.36 million (US$ 136.60 million) compared to BD 47.50 million (US$ 126.33 million) for the previous year. These strong results demonstrate successful implementation of the Bank’s business strategies in the interest of all our stakeholders. Return on Equity at 15.06 percent and Return on Assets at 1.90 percent remains strong by regional and international standards. The Bank is well capitalized with strong liquidity and a diversified asset portfolio,” Almoayyed told the shareholders.
The shareholders approved the distribution of Cash Dividend of 35 percent amounting to BD 32.93 million (US$ 87.58 million).
“The year 2013 was another successful year for National Bank of Bahrain with record profitability backed by steady progress in the underlying business of the Bank. Key performance indicators continue to be healthy as the Bank progresses with implementation of its strategic plan by offering enhanced products and services to its customers,” Abdul Razak Al Qassim, Chief Executive Officer and Director, said.
“The growth prospects for the global and regional economies are cautiously optimistic. Additionally, Bahrain’s economy is expected to benefit from increased government spending and deployment of GCC Development Fund. The Economic Development Board forecasts 4.4 percent non-oil sector growth and 3.7 percent headline growth in 2014. The increased focus on infrastructure and other social development projects will provide additional lending opportunities for the domestic financial institutions. NBB with a strong capital base, adequate liquidity and the largest distribution network is well positioned to capitalize on increased business opportunities against the backdrop of an anticipated recovery in the global and domestic economy. We reaffirm our strong commitment to meet the expectations of our customers while reassuring our shareholders of continued progress in the years ahead,” Al Qassim, added.