Alubaf a Bahrain- based wholesale bank, yesterday reported an increase of 35 per cent in net profit at $11.6 million for the first quarter, compared with the same period a year ago. Alubaf chief executive Hasan Abulhasan said the main driver of the increase in income was core business activity. Net interest income increased by 33pc and fee and commission income by 70pc, compared with the same period last year.

Cost to income ratio stabilised at 22pc and capital adequacy remained strong at 48pc. Loan recovery in the first quarter reduced the 'non-performing loans to gross loans ratio' to below 1pc. Loan portfolio increased by 31pc and non-trading investments grew by 14pc in the first quarter, compared with the levels as on December 31 last year.

“The first-quarter financial performance is encouraging and indicates that the bank is on the right growth path, as envisaged by the management," Mr Abulhasan said. "The bank has delivered consistent growth and return on average equity and business expansion continues," he added.