Fujairah bank’s 9-month profit rises 23 per cent to Dh453.8m

National Bank of Fujairah (NBF) recorded a net profit of Dh453.8 million in the first nine months of 2015 compared to Dh369.2 million in the corresponding period of 2014; an increase of 22.9 per cent.

Operating profit was Dh586.1 million compared to Dh465.4 million in the corresponding period of 2014; a rise of 25.9 per cent.

The bank said net impairment losses were Dh132.3 million compared to Dh96.1 million in the corresponding period of 2014.

This includes the increase in the bank's loan book and the collective impairment provision required by International Financial Reporting Standards (IFRS) and the Central Bank. Nevertheless, the bank's NPL ratio improved from 4.6 per cent in 2014 to 3.7 per cent.

Total provision coverage improved to 137.4 per cent from 118.5 per cent at 30 September 2014.

Operating income experienced a growth of 23.5 per cent. Net interest income grew by 21.9 per cent, net fees and commission income by 27.9 per cent and foreign exchange and derivatives income marked a growth of 32.2 per cent compared to the same period in 2014.

Operating expenses increased by 19.3 per cent, reflecting on-going investment in NBF's business and service platforms. Cost-to-income ratio improved to 35.9 per cent from 37.1 per cent over the same period in 2014.

Loans and advances of Dh19.4 billion were up by 18.9 per cent from Dh16.3 billion at 2014 year end, and up by 21.7 per cent from 30 September 2014.

Customer deposits of Dh20.2 billion were up by 12.8 per cent from Dh17.9 billion at 2014 year end, and up by 22.8 per cent from 30 September 2014.

Shareholders' equity went up by 24.2 per cent to Dh4.2 billion compared to Dh3.4 billion at 2014 year end. Strong capital adequacy and lending to stable resources ratios were maintained at 18.7 per cent (Tier 1 ratio: 16.0 per cent) and 88.7 per cent respectively, well ahead of Central Bank minimum requirements.

Return on average assets was 2.3 per cent, up from 2.2 per cent over the same period in 2014.

Return on average equity was 16.0 per cent, up from 15.7 per cent over the same period in 2014.

Easa Saleh Al Gurg, Deputy Chairman, said: "This latest set of results is once again a firm endorsement of NBF's resolute focus on its core business and discipline in maintaining strong credit quality, healthy liquidity and exceptional service delivery. We are particularly pleased to see the bank maintain its strong growth momentum despite the rapidly-changing operating environment. Such consistency in focus and performance gives us great confidence in the bank's ability to overcome whatever challenges the market may present to achieve greater levels of success.

"We will continue our efforts to strengthen the bank's foundation for success. We will seize opportunities whenever they arise and invest in the necessary platforms to better support our clients, as can be seen with our recent launch of a business unit supporting the business aspirations of Emirati women. As we move closer to the anniversary of the founding of our glorious nation, we would like to express our deep gratitude for being given the privilege to serve the country and look forward to contributing to its economic success for many years to come."