The National Commercial Bank (NCB) has made a profit of SR 6.012 million in 2011 registering a 27.3 percent increase over 2010, a press statement of the bank said here Saturday. “Despite the prevailing low rates, the bank's net special commission income during the year increased by 5.3 percent to SAR 8,581 million,” Sheikh Abdullah Bahamdan chairman of the bank said. “The increase in shareholders' equity and customer deposits enabled the bank to increase its assets.” Shareholders' equity increased by SR 2.7 billion, or 8.3percent, to SAR 35.6 billion, while customer deposits increased by SR 10.3 billion, or 4.5 percent, to reach SAR 239.5 billion. Total assets increased by 6.7 percent to reach SR 301.2 billion. This increase was reflected in expanded lending activities, with the loan portfolio increasing by 7.7 percent to reach SR 135.3 billion. The bank continued to effectively manage its credit risk, taking provisions in 2011 in accordance with its prudent provisioning methodology. As a result, its coverage ratio increased to 140.9 percent in 2011 from 116.9percent in 2010. The bank succeeded in increasing its return on equity to 18.4 percent in 2011 from 15.6 percent in 2010. The capital adequacy ratio (tier 1 and 2) was 18.2 percent. Bahamdan attributed the bank's positive results to its success in developing suitable products for its target segments. The results also reflect its successful strategies, which enabled it to achieve its shareholders' expectations, grow and diversify its sources of revenue and build its financial and human resources to providing superior customer service. The bank also maintained its A+ rating from the global rating agencies, Standard & Poor's and Fitch Ratings. This is the highest rating given to any bank in Saudi Arabia and reflects the bank's financial strength and high liquidity levels, as well as the bank's leading local and regional position. Bahamdan expressed his gratitude to Government of the Custodian of the Two Holy Mosques and the Saudi Arabian Monetary Agency, whose financial and monetary policies contributed significantly to the improvement of the economic environment in the Saudi businesses.