NIB posts Dhs85 million net profit

Noor Islamic Bank (NIB) recorded a net operating profit of Dhs207 million for the first six months of 2011, on a revenue base of Dhs386 million. Net profit for the period ending June 30th was Dhs85 million. The bank remains adequately capitalised with a capital adequacy ratio of 18.36 per cent. Sheikh Ahmed Bin Mohammed Bin Rashid Al Maktoum, Chairman of Noor Islamic Bank said: “Our robust performance in the first half of the year is a direct result of the strategic initiatives and business model realignment that we have been undertaking within the bank over the past 18 months.” “Our efforts to focus our expertise on niche business opportunities are reflected in our earnings momentum,” he added. “We will maintain a prudent approach in our growth strategy. The bank’s capital adequacy ratio remains robust at 18.36 per cent. We remain confident and positive about our future and are well positioned to continue to provide consistent performance, both financially and operationally, and to maximise opportunities as the economic situation improves.” Noor Islamic Bank’s improved results are underpinned by increased operating revenues and earnings stemming from the strategic consolidation drive adopted in 2010. Cost reductions were implemented with minimal impact on the bank’s overall business objectives and by continuingly exercising disciplined risk management practices, the bank was able to deliver strong financial results. Hussain AlQemzi, Chief Executive Officer, Noor Islamic Bank and Group CEO Noor Investment Group said: “We have been able to realise strong operating results as a consequence of remaining focussed on executing against our stated strategy of playing to our strengths and leveraging on our areas of expertise, across the UAE and regionally.” “The past six months of this year have shown steady growth in our net revenues of Dhs386 million, whilst simultaneously generating an improvement of 7 per cent in our expense base against the same period last year,” AlQemzi added. “Against an operating loss of Dhs9 million at the end of the first half of 2010, we have realised an operating profit of Dhs207 million and a net profit of Dhs85 million. We will continue to remain focussed on our fundamentals of capital and liquidity management whilst continuously identifying opportunities to optimise our costs in order to ensure we deliver sustainable results,” he added. He also said: “Our deposit base has grown by 40 per cent over same period in 2010, on a client base that has grown by 21 per cent. We will continue to invest in our core franchise proposition through enhancing our transactional and institutional banking, trade finance and wealth management capabilities.” “Our geographic footprint continues to remain focussed on deepening our relationships with our clients in Abu Dhabi as well as extending the reach of our corporate advisory, capital market and structuring capabilities across the region,” AlQemzi added. “On the retail side of our franchise, we are firmly committed towards continuing to invest in our sales and distribution strategy of enhancing our client experience by introducing more benefits to our products and more functionality across our customer touch points.” In addition to its UAE based operations, Noor Islamic Bank has executed mandates to lead manage multiple syndications valued at $1.1 billion in Turkey during the past 18 months. There is a pipeline of another $600 million, the latest of which is a $150 Million equivalent Dual-Currency Syndicated Murabaha Financing Facility for AlbarakaTürk, one of Turkey’s leading Islamic banks. The facility was launched into general syndication on June 29, with banks from across the globe invited to participate. NIB is also active in GCC and Mena region markets. Established in 2007 in Dubai, Noor Islamic Bank is a full service bank delivering the broadest range of products for its clients, with an emphasis on unique and personalized services. Noor Islamic Bank’s products and services are governed by a Shari’a Board, comprising leading Islamic scholars with extensive experience and expertise in legal, financial and banking-related matters. Noor Islamic Bank has locations across the UAE in the Emirates of Abu Dhabi, Dubai and Sharjah, and has a representative office in Tunisia which is managed out of Dubai. From / Gulf Today