The National Bank of Bahrain (NBB) had no exposure to the subprime market, which has devastated banks across the globe.

That was the message from outgoing chief executive officer and managing director Hassan Ali Juma at the bank's general assembly yesterday (Sunday).

Arab Banking Corporation (ABC) recently announced it received a $230 million blow from subprime-based investments.

NBB chairman Abdulla Ali Kanoo said that the bank pursued prudent policies, risk management strategies and tactical business plans to overcome the turmoil in global financial markets since July last year, caused by the subprime mortgage crisis, the housing market meltdown in the US and liquidity concerns.

"The pace of global economic growth continued albeit at a slower pace as fears of slowing down in major economies due to high energy prices loomed over the horizon.

"In the GCC, governments made further progress on the path of economic and political reforms," he said.

"The high levels of oil and gas prices led to significant fiscal and current account surpluses for the GCC states and also translated into larger investments in infrastructure projects and boosted regional business confidence.

"The GCC states continued to progress towards economic integration and taking further steps towards making the GCC a single market and economic bloc."

"This year's financial results were gratifying, given external headwinds our industry faced last year," he said.

"As a result, we were successful in achieving higher returns for our shareholders. Net Income improved last year by BD12.8 per cent to BD41.56 million ($110.53 million) from BD36.86 million in the previous year, as reflected in the increase in earnings per share to 64.1 fils, as compared to 56.9 fils in the previous year.

"The improvement in net income is mainly attributable to an increase in net interest income from BD38.59 million in 2006 to BD42.17 million last year.

"The bank has now opened its first branch in Riyadh and is looking to open new branches in both Dubai and Qatar," Kanoo said.

Having spent 29 years with the bank Juma said he felt it was time to move on, though he will remain on the bank's board.

He added that he saw his move to ABC as a challenge. "While we extend great gratitude to Mr Juma for his fruitful efforts and unlimited dedication over 29 years of working for the bank, we would like to commend his effective leading role during his tenure as managing director and chief executive of NBB," said Kanoo.-TradeArabia News Service