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21 April 2024

NBF returns to profitability

By Staff Writer

National Bank of Fujairah PSC (NBF) has recorded a net profit of Dh 104.3 million for the year 2009. The bank made a loss of Dh 50.3 million during the corresponding period in previous year. 

The bank’s chairman said it would pursue “selective opportunities” in future to attain steady growth.

“This is a solid set of results in one of the most challenging economic environments we have ever seen. Following the full year loss in 2008, these results mark a welcome return to profitable operations. The Bank will continue its prudent approach in these unprecedented market conditions and will pursue selective opportunities for achieving steady growth and adding value for its shareholders,”  said Sheikh Saleh Bin Mohammed Al Sharqi, Chairman of NBF.

NBF saw its operating income reduce to Dh 506.5 million compared to Dh 537.9 million in the corresponding period in 2008 “reflecting the general slowdown in economic activity and higher cost of funds due to market conditions.”

It increased its loan impairment charge by Dh 34.6 million to Dh 214.3 million in 2009 compared to previous year. The charge  includes an amount of Dh 73 million in respect of the bank’s exposure of Dh 92 million to the Al Gosaibi and Saad Groups of Saudi Arabia.

The bank said it continues to be prudent and proactive in providing for potential loan losses in view of uncertain conditions.

Total assets stood at Dh 11.9 billion but down from Dh 12.8 billion as at the year end. “The reduction in the statement of financial position reflects subdued demand for credit in the corporate sector and the bank’s prudent risk appetite,” it said.