NBF H1 net profit declines 60% to Dh60.7 million

National Bank of Fujairah (NBF) has recorded a 60 per cent decline in its net profit to Dh60.7 million for the first half of 2009 from Dh153.5 million in the corresponding period of last year. "This decline in profit reflects difficult credit and liquidity conditions and the general economic slow down," said the bank. Operating income reduced to Dh239.9m in comparison to Dh266.4m in Q2 2008, reflecting the general slowdown in economic activity and higher cost of funds due to market conditions. The liquidity cost in the market continues to be at unprecedented levels and has had a negative impact on net interest income and profit. Easa Saleh Al Gurg, Deputy Chairman of NBF, said: "I am pleased with the bank's performance during these most challenging times and amidst the global economic down turn. The build-up in provisioning levels will ensure the bank is able to face uncertain credit conditions in the Gulf with confidence. The bank will continue to focus on financial stability and will pursue selective opportunities for achieving steady growth and adding value for its shareholders." The investment [funds] portfolio reduced to Dh95.5m from Dh227.4m at December 2008. The bond portfolio saw some recovery and as a result, a gain on investment of Dh32.3m was recognized through the statement of income, compared to a loss of Dh19.6m for the corresponding quarter of 2008. Total assets stood at Dh12.4bn, up from Dh11.9bn at Q1 2009 but down from Dh12.8bn at the year end. Keep up with the latest business news from the region with the Emirates Business 24|7 daily newsletter. To subscribe to the newsletter, please click here .