NBF profit for 2007 up 36.3%

National Bank of Fujairah (NBF) yesterday said unaudited results for 2007 showed a profit increase of 36.3 per cent from Dh237.6 million to Dh323.8m, the fourth consecutive year that profit increased by more than 35 per cent.

“NBF continues to reap benefits of its ‘build and diversify’ strategy by leveraging its expertise in corporate, trade finance and treasury business and making headway in SME and wealth management segments,” General Manager Asad Ahmed said in a statement.

Fee income saw a growth of 23.2 per cent on the back of strong performance from wealth management and financial institution business coupled with diversification into syndication. During 2007, NBF launched its syndication desk and successfully closed transactions totaling Dh500m in its capacity as lead manager, the bank statement said.

Assets and liabilities grew by 42.5 and 48.8 per cent to Dh12.3 billion and Dh10.5bn, respectively.

Earnings per share increased to Dh0.29 from Dh0.22 in 2006. Return on average equity rose from 16 per cent in 2006 to 19.2 per cent while return on average assets stood marginally lower at 3.1 per cent for the year as opposed to 3.2 per cent in 2006. Shareholders’ equity as of December 31 (prior to dividend distribution) stood at Dh1.8bn and the capital adequacy ratio stood at 14.69 per cent against the Central Bank minimum of 10 per cent.

Operating expenses increased by 44 per cent and cost to income ratio at 30.6 per cent was marginally up compared to 29 per cent last year. “This largely reflects strategic investment in new business initiatives, strengthening of human capital, enhanced focus on control and governance and expansion of distribution network, and partly attributable to inflationary pressures.

“Number of staff of the Group has grown from 399 in 2006 to 511,” the bank statement said.