Dubai
National Bank of Umm Al-Qaiwain (NBQ) has reported a 9 per cent increase in net profits for the first nine months of 2017 to Dh285.89 million compared to Dh261.76 million in the same period in 2016.
For the third quarter of 2017, the bank reported a net profit of Dh75.29 million compared to Dh69 million reported in the same quarter last year.
Improved operating performance was driven by the increase in interest income, higher fee income and effective recovery strategies, the bank said in a statement.
The bank’s total assets stood at Dh14.05 billion at the close of the third quarter compared to Dh13.55 billion at the year-end 2016. Loan growth was flat during the period at Dh8.72 billion. Customer deposits marked a 5 per cent increase compared to year-end 2016.
Interest income and income Islamic financing products reported a growth of 5 per cent as compared to the same period last year. Fee and commission income increased by 6 per cent.
Cost to income ratio stood at 32 per cent during the first 9 months, reflecting the bank’s operational efficiencies and disciplined cost management.
Net provision charge for loan impairments for the first nine months of 2017 decreased by 79 per cent as compared to the same period last year. Asset quality improved as non-performing loans (NPL) ratio improved to 4.3 per cent compared to 6.9 per cent at the year-end 2016 and 8.1 per cent for the first nine months of 2016.
The bank remains well capitalised with capital adequacy ratio at 33.11 per cent and tier one ratio at 31.8 per cent at the close of the third quarter 2017.
