National Bank of Fujairah reports 28.9% net profit growth

National Bank of Fujairah PJSC (NBF) has announced its results for the nine month period ended 30 September 2014, recording a net profit of Dh 369.2 million compared to Dh 286.4 million in the corresponding period of 2013; showing a jump of 28.9 percent.
The operating profit of the bank had gone up 15.6 percent from Dh 465.4 million compared to Dh 402.6 million in the corresponding period last year.
According to the statistics, the net impairment losses during the period were Dh 96.1 million compared to Dh 116.2 million in the corresponding period; depicting an improvement of 17.3 percent. The NPL ratio stood at 4.7 percent compared to 6.1 percent at 30 September 2013.
Net interest income of the bank grew by 16.7 percent and operating income grew by 17.3 percent compared to the corresponding period. Similarly, operating expenses increased by 20.3 percent; reflecting on-going investment in enhancing NBF's business and service platforms. Cost-to-income ratio stood at 37.1 percent compared to 36.2 percent in the corresponding period.
Loans and advances of Dh 15.9 billion were up 14.8 percent from Dh 13.8 billion at 2013 year.
Customer deposits of Dh 16.5 billion were up 9.8 percent from Dh 15.0 billion at 2013 year end, and up by 24.2 percent from 30 September 2013. Strong capital adequacy and lending to stable resources ratios were maintained at 16.01 percent (Tier 1 ratio: 13.02 percent ) and 89.1 percent respectively; well ahead of Central Bank minimum requirements.
As part of ongoing efforts to broaden its suite of services, the bank recently launched NBF Islamic to provide clients with a comprehensive suite of Sharia' compliant financial solutions. It also announced the establishment of an equipment finance unit to support companies and vendors in sectors ranging from transportation and logistics to healthcare and manufacturing.
Sir Easa Saleh Al Gurg, KCVO, CBE Deputy Chairman said: "We are happy to report once again that the bank is progressing smoothly on its growth path, with its progression underpinned by a consistent focus on core business, product and service quality and risk management. The bank's strategic initiatives, such as the recently introduced Islamic banking proposition, have started to bear fruit, and with customers' continued support, our ongoing growth is assured.
"We will continue to leverage our award-winning capabilities and investments in infrastructure and technology to take customer service levels to greater heights and maximise shareholder returns. As a bank firmly rooted in the cultural heritage and economic success of the U.A.E., we will continue to play our part in its ongoing progress."