NBF posts Dh126.1 million first quarter net profits

DUBAI

National Bank of Fujairah (NBF) posted a net profit of Dh126.1 million in the first quarter of 2017.

Compared to the corresponding period of 2016, net profit was lower by 16.2 per cent after absorbing provisions. However, the bank’s first quarter profits were up 81.4 per cent compared to Dh69.5 million reported in the fourth quarter of 2016, reflecting improvement in provisions.

“NBF’s resilient financial performance in a difficult environment demonstrates its strong focus on being a reliable and consistent player and re-affirmation of our credit rating by Moody’s further underscores our commitment to long-term sustainability,” said Eisa Saleh Al Gurg, Deputy Chairman of NBF.

The bank reported operating income of Dh324.6 million compared to Dh336.3 million in the corresponding period of 2016. Marginally lower operating income is attributed to one-off exceptional income recorded in the first quarter of 2016. Foreign exchange and derivatives income recorded a 13.5 per cent increase compared to the corresponding period of 2016.

At the close of the first quarter, loans and advances and Islamic financing receivables reached Dh23.2 billion, up by 1.6 per cent from Dh22.8 billion at 2016 year end, and up by 11.2 per cent reported in the first quarter of 2016.

Customer deposits including Islamic customer deposits were at Dh26.5 billion at the close of the first quarter of this year up by 2.2 per cent from Dh25.9 billion at 2016 year end, and up by 14.5 per cent from the first quarter 2016.

Net impairment charge was Dh85.9 million in the first three months of this year compared to Dh72.6 million in the corresponding period of 2016 and Dh162.3 million in the fourth quarter 2016. The NPL ratio was 5.11 per cent compared to 4.95 per cent as at year end 2016. Total provision coverage ratio was 92.1 per cent compared to 101.3 per cent as at year end 2016.

The bank continued to maintain strong capital adequacy and liquidity levels. Capital adequacy ratio was 17.5 per cent and lending to stable resources ratio stood at 84.8 per cent at the close of the first quarter.