National Bank of Fujairah net profit surges by 31.3 percent

WAM FUJAIRAH, 24th October, 2013 (WAM) — The National Bank of Fujairah PSC has announced its financial results for the nine month period, which ended on 30th September 2013.

The bank recorded a net profit of AED 286.4 million compared to AED 218.1 million in the corresponding period of 2012. Similarly the operating profit of the bank was AED 402.6 million compared to AED 341.4 million in the corresponding period of last year.

Loan loss provision was AED 116.2 million compared to AED 123.3 million in 2012, an improvement of 5.8 percent. Non-performing loan ratio improved to 5.9 percent from 8.4 percent at 30 September 2012 and 7.6 percent at year end.

Total provision coverage improved to 97.0 percent from 72.1 percent at 30th September 2012 and 79.7 percent at 31st December 2012.

The operating income of the bank grew by 16.2 percent and foreign exchange and derivatives income experienced a growth of 15.7 percent, the operating expenses increased by 13.2 percent, which reflected ongoing investment in new initiatives and operating platforms to enhance NBF’s customer service experience. Cost-to-income ratio also improved to 36.2 percent compared to 37.2 percent in the corresponding period of 2012.

Strong capital adequacy and advances-to-deposits ratios were maintained at 15.9 percent (Tier 1 ratio: 14.6 percent) and 86.3 percent respectively, well ahead of Central Bank minimum requirements.

Some of the highlights show that total assets of AED 19.6 billion were up 11.7 percent from AED 17.5 billion at year end and up 22.0 percent from 30th September 2012. Loans and advances of AED 13.9 billion were up 14.0 percent from AED 12.2 billion at year end and up 20.1 percent from 30th September 2012.

Likewise customer deposits of AED 13.3 billion were up 6.6 percent from AED 12.4 billion at year end and up 18.2 percent from 30th September 2012.

Easa Saleh Al Gurg, KCVO, CBE, and Vice Chairman of NBF, said, “We are pleased to highlight once again the growth momentum of the bank, as can be seen through the steady growth of its loans and advances, customer deposits, operating profit and net profit. Improvement in the NPL ratio will further augment the bank’s underlying performance.

“Customer service delivery remains the cornerstone of the bank’s high quality performance, as well as efforts to raise its public profile to better leverage opportunities in the improving regional economy. NBF also remains committed to the aspirations of the U.A.E. and will continue to play a role in the country’s growth through ongoing talent development efforts within the bank and regular investment in the local community,” he added.

WAM/AM/CM

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