The National Bank of Bahrain (NBB) reported a 7.7 percent net profit rise during the first quarter of 2004 reaching 8.28 million Bahraini dinars ($21 million) against BD 7.69 million for the first quarter of 2003.
The previous year's comparable period net income includes BD 1.27 million of non-repetitive income arising from reversal of liabilities relating to a dispute with the main contractor of the new NBB Tower building. Due to an amicable settlement of all pending disputes with the contractor, these liabilities ceased to exist and were reversed and recognized as income, stated a press release. The year-on-year increase in the bank's net income, ignoring this non-repetitive income, is BD 1.86 million, an increase of 29 percent.
Continued expansion in the bank's loan and deposits book resulted in an increase of net interest income from BD 5.73 million during the first quarter of 2003 to BD 6.26 million in the first three months of 2004. However, in an all time low short-term interest rate environment, yield on the bank's surplus liquidity deployment remained low. Other income increased to BD 5.63 million from the previous year's level of BD 4.97 million. The increase in other income is attributable to good commission income from our core businesses, a good treasury performance and success in our investment advisory activities.
NBB was established in 1957 as the first indigenous bank in Bahrain. A nation-wide network of 25 branches, 38 ATMs and over 2,500 Point of Sale terminals makes NBB one of the leading providers of commercial and retail banking services in the Kingdom. — (menareport.com)
© 2004 Mena Report (www.menareport.com)
