National Bank of Fujairah’s first quarter net profit jumps 27.1%

Dubai: National Bank of Fujairah (NBF) on Wednesday reported a net profit of Dh115.3 million, up 27.1 per cent compared to Dh90.7 million reported in the corresponding period last year.

The bank’s operating profit was up 18.8 per cent year on year at Dh151.5 million in the first quarter of this year.

NBF’s total assets surged 27.4 per cent to Dh22.7 billion in the first quarter of this year compared to the same period last year and was up 5.7 per cent from the year end 2013.

Loans and advances were up 8.1 per cent to Dh15.5 billion from Dh14.3 billion at 2013 year end as customer deposits grew 6 per cent to Dh15.9 billion in the same period.


Renewed optimism

“NBF’s strong start to 2014 highlights not just the success of the bank’s strategy of steady and sustainable growth, but the renewed optimism that has started to take root in the country,” said Easa Saleh Al Gurg, Deputy Chairman of NBF.

NBF’s net interest income grew by 24 per cent in the first quarter of this year and operating income grew by 20.2 per cent compared to the corresponding period of 2013.

Operating expenses increased by 22.6 per cent. Cost-to-income ratio stood at 36.9 per cent compared to 36.2 per cent in the corresponding period of 2013.

Improving business environment is reflected in a decline in impairment losses. The bank’s net impairment losses were at Dh36.2 million at the end of the first quarter of this year compared to Dh36.8 million in the corresponding period of 2013. 
The non-performing loans (NPL) ratio also improved to 4.3 per cent from 4.6 per cent at December 31, 2013, and 7.2 per cent at March 31, 2013.

Total provision coverage was 121.7 per cent; a steady improvement from 118.4 per cent at December 31, 2013, and 86.9 per cent at March 31, 2013.

Strong capital adequacy and advances-to-deposits ratios were maintained at 17.5 per cent and 86.1 per cent respectively. At the close of the quarter, return on average assets improved to 2.09 per cent compared to 2.05 per cent for the corresponding period in 2013. Return on average equity improved to 15.3 per cent compared to 14.5 per cent for the corresponding period in 2013.

“Re-invigorated by a respectable external rating profile and backed by robust liquidity, stronger capital position and prudent policies, we are confident that we will be able to partner our customers to achieve greater heights together with the strong support of our shareholders,” said Al Gurg.