(MENAFN - Bahrain Tribune) Bahrain's first bank, National Bank of Bahrain yesterday said it would increase its authorised capital from BD100 million to BD150 million to aid its strategic expansion plans and requirements in the finance and investment domains.
The authorised capital of the bank would be raised from BD100 million (1 billion shares of 100 fils each) to BD150 million (1.5 billion shares of 100 fils each). The bank will issue 129.6 million equity shares at a price of 645 fils (face value of 100 fils) on a rights basis to existing shareholders in the ratio of 1 share for every 6 shares, thereby raising a total amount of BD83.6 Million. The plan for the increase in the authorised capital is to be presented to the shareholders at an extraordinary general meeting to be held on October 12 for approval and subject to all necessary regulatory approvals.
The bank's Board of Directors at its meeting yesterday passed a resolution recommending the increase in authorised capital and issuance of 129.6 million equity shares. "This capital increase is in accordance with the future strategic plan of the Bank and the expansion requirements in the various fields of finance and investment," the bank said.
This follows the decision taken at the board meeting of National Bank of Bahrain on June 23 to increase the capital and to appoint an Advisor and Issue Manager for the purpose.
The bank's net income for the first six months of the year rose to BD25.57 million (68.01 million), compared to BD22.54 million (59.95 million) for the corresponding period last year, up by 13.5 per cent. Shareholders returns for the period also moved up with earnings per share of 32.9 fils compared to 29 fils for the corresponding period last year.
The annualised return on average equity during the first half of the year was put at 21.26 per cent as against 20.31 per cent last year. Customers' deposits of Bahrain's premier financial institution - the first to be listed on the Bahrain bourse with shareholding primarily by Bahraini citizens (51 per cent) and the Government of Bahrain (49 per cent) - stood at a staggering BD1369.80 million (3643.09 million), higher by 9.2% compared to BD1254.41 million as at 30 June 2007.