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28 February 2024

NBF 2011 profit surges 64.4%

By Staff

The Abu Dhabi-listed National Bank of Fujairah (NBF) has announced a 64.4 per cent surge in its net profits for 2011, from Dh170.9m in 2010 to Dh280.9m last year.

In a media statement announcing the same, the bank said these results were driven by strong core business performance, effective asset and liability management and a reduction in loan loss provisions.

Contrary to the growing provisioning levels at some of the other UAE banks, NBF reported a 45 per cent decline in loan loss provisions, from Dh205m in 2010 to was Dh113.3m in 2011.

HH Sheikh Saleh Bin Mohammed Al Sharqi, Chairman of NBF, said: “The bank’s resilient performance is a resounding endorsement of its well-balanced growth strategy. Despite the prevailing market, the bank has managed to grow core earnings which, coupled with a sharper focus on balance sheet management and reduction in credit losses, helped produce one of the strongest sets of results in its operating history.”

The bank’s operating income grew by 14.1 per cent from Dh568m in 2010 to Dh648.3m in 2011 while its exchange income, including derivative income, saw a growth of 18.1 per cent to a record high of Dh50m.

“The board of directors, management and staff can rightly feel proud of these results. I, on behalf of the board of directors, am therefore pleased to recommend a distribution of profits in the form of cash dividends of 10 per cent of the paid-up capital,” the chairman added.

“Backed by prudent policies and strong liquidity and capital positions, the bank was able to grow its operating profit to a record high of Dh394.3m and loan book by 20.5 per cent, which is significantly greater than the industry average,” said HE Sir Easa Saleh Al Gurg, KCVO, CBE Deputy Chairman.

“NBF is committed to the growth of Fujairah and the UAE. Despite the wider global challenges, good opportunities still exist and we will continue to leverage them for the continued success of the bank and the future of the UAE,” he added.

Some of the other highlights of NBF’s 2011 results are:

•Cost-to-income ratio of 39.4% (2010: 35.6%) reflects investment in new growth initiatives

•Strong capital adequacy and advances-to-deposits ratios were maintained at  20.3% (Tier 1 ratio of 12.8%) and 84.8% respectively, well ahead of Central Bank minimum requirements

•Total assets of AED 14.9 billion were up 15.5% from AED 12.9 billion at year end

•Total loans and advances of AED 10.5 billion were up 20.5% from AED 8.7 billion at year end

•Return on average assets was 2.0% compared to 1.4% in 2010

•Return on average equity was 14.4% compared to 9.7% in 2010

•Cash dividends of 10.0% of paid-up capital has been recommended