Dubai: National Bank of Fujairah reported a net profit of Dh390.9 million for the first nine months of 2016, down 13.9 per cent from Dh453.8 million in the same period in 2015.

The bank’s operating income grew 6.7 per cent as its net interest income and net income from Islamic financing and investment activities grew by 4.8 per cent, net fees and commission income by 6 per cent, foreign exchange and derivatives income was up by 13.7 per cent and income from investments doubled compared to the corresponding period of 2015.

“NBF continued to deliver strong operating results despite the challenging operating environment. Resilient performance is attributed to core business focus, prudent growth strategy and efficient operating model; while maintaining robust capital and liquidity positions,” said Easa Saleh Al Gurg, Deputy Chairman of NBF.

Operating expenses during the nine-month period was up by 3.9 per cent, reflecting ongoing investment in NBF’s business and service platforms and disciplined cost management. Cost-to-income ratio improved to 34.9 per cent compared to 35.9 per cent in the same period last year on the back of operational efficiencies.

Operating profit was Dh634.2 million compared to Dh586.1 million in the corresponding period of 2015; a rise of 8.2 per cent. Fee to income ratio stood at 35.4 per cent compared to 34.2 per cent in the corresponding period of 2015.

“Our ongoing bank-wide cost management initiatives helped us to maintain a healthy cost to income ratio; whilst ensuring that we continue to invest in our businesses for the future,” Al Gurg said.

NBF’s net impairment losses were Dh243.2 million at the close of the third quarter compared to Dh132.3 million in the corresponding period of 2015. The bank’s NPL ratio was 4.77 per cent at the close of the quarter compared to 4.72 per cent at year-end 2015. Total provision coverage ratio improved to 111.6 per cent compared to 107.7 per cent the end of 2015.

Loans and advances and Islamic financing receivables of Dh21.9 billion were up by 11.2 per cent from Dh19.7 billion at 2015 year end, and up by 12.8 per cent from September 30, 2015. Customer deposits and Islamic customer deposits of Dh23.1 billion were up by 7 per cent from Dh21.6 billion at 2015 year end, and up by 14.2 per cent year-on-year.