MANAMA: National Bank of Bahrain (NBB) is seeking investment opportunities beyond Bahraini market, thanks to the excess liquidity the bank enjoys, according to a top board official.
“The bank has excess liquidity and is seeking to lend money to any profitable project in Bahrain or in the GCC,” Farouq Almoayyed Chairman NBB board of directors on the sidelines of the Bank’s 58th annual general assembly (AGM) told The24X7News Bahrain (www.twentyfoursevennews.com) on Wednesday.
In his speech he told the shareholders that the bank had maintained growth momentum and achieved a net profit of BD53.44 million for the year 2014 compared to BD51.36 million for the previous year, an increase of 4 percent.
The AGM was attended by 85.6 per cent of the bank’s shareholding approved the financial statement as well as the payment of the cash dividend of BD23.5 million or equal to 25 fils per share for 2014.
The financials reflect the sustained progress made by the Bank and our ability to enhance returns to our shareholders. Return on equity at 14.42 percent and Return on Assets at 1.95 percent remains strong by regional and international standards. The Bank is well capitalized with strong liquidity and a diversified asset portfolio.
The Chairman said that the bank was exploring avenues of merger or acquisition and opening up branches in Abu Dhabi and Saudi Arabia.
“NBB is also looking at the sub-continent to seize any potential opportunities,” he added.
Customer deposits continue to show steady growth and stands at BD 2,154.85 million as at 31 December 2014 compared to BD 2,083.54 million as at 31 December 2013, reflecting a growth of 3.4%. Total Earning Assets stood at BD 2,580.92 million as at 31 December 2014 compared to BD 2,596.84 million as at the previous year end. The Bank continues to have a well-diversified portfolio of assets. Capital Adequacy continues to remain at a healthy level of 34.3 percent before the proposed appropriations.
NBB’s continues to actively support the development of the Kingdom’s economy. In meeting with this objective, the Bank took several initiatives during the year. The focus of Personal Banking was to expand the distribution network and offer products and services in line with the changing preferences of our customers mainly in the area of technology initiatives besides strengthening customer relationships. The focus of the Business Banking was to support the corporate and commercial business segments by structuring suitable products and services to meet their business requirements. Regionally, the Bank’s strategy of selective expansion at Abu Dhabi and Riyadh is progressing as planned. Treasury & Investment Group played a major role during the year by deploying the surplus liquidity in several domestic and regional issues.
The prospects for 2015 appear to be challenging given the current global economic situation and the significant drop in the oil prices in over the last few months. The board of directors takes this opportunity to reaffirm their commitment to meet the expectations of all stakeholders while maintaining the highest standards of corporate governance in all its business dealings.
The board is recommending the allocation of BD2.67 million to the donations and contributions programme, representing 5 per cent of 2014 profits available for distribution. The cumulative allocation under the programme, since its inception in 1980, is now BD37.01 million.
The board recognizes that good governance is a vital ingredient in the success of any organization and is fully committed to protect the interest of all its stakeholders. The Bank is in compliance with the requirements of the Code of Corporate Governance issued by the Ministry of Industry and Commerce and the CBB’s Rulebook.
The Directors, on behalf of the shareholders, take this opportunity to express their gratitude and sincere appreciation to His Majesty King Hamad bin Isa Al Khalifa – the King of Bahrain, to His Royal Highness Shaikh Khalifa bin Salman Al Khalifa – the Prime Minister, to His Royal Highness Shaikh Salman bin Hamad Al Khalifa – the Crown Prince, Deputy Supreme Commander and First Deputy Prime Minister, Government ministries and institutions – especially the Ministry of Finance and the Central Bank of Bahrain, for their guidance, kind consideration and support.
The Directors would like to take this opportunity to welcome Sheikh Rashid Bin Salman Al Khalifa as a member of the Board of Directors and look forward to his contribution towards the continued success of the Bank.
The Directors also extend their thanks and appreciation to the staff of the Bank whose dedicated service and commitment has played a vital role in the achievements of the Bank over the years and to all our valued customers and friends for their continuous support and the confidence reposed by them in the National Bank of Bahrain.