NBF nine months period results shows strong business growth
Core operating income for nine and three months periods ended 30 September 2008 up 44% & 52% respectively whilst international market conditions restrict net profit to AED 67 million
National Bank of Fujairah PSC has announced its results for the nine month period ended 30th September 2008 recording a net profit of AED 67 million compared to the corresponding period profit of AED 228.9 million in 2007. The third quarter results were impacted by international market conditions which resulted in a net loss of AED 86.5 million as opposed to the corresponding quarter of 2007 which produced a profit of AED 76 million.
Investment fair value decline in the quarter was AED 133 million, of which AED 109.5 million was recognized through the Profit and Loss compared to Investment income of AED 55.4 million for the corresponding quarter of 2007. An additional impairment loss of AED 69.7 million has been recognized in respect of credit exposures impairment caused by the current market conditions.
"The underlying core business growth continues to be robust whilst the net results for the nine month period to 30th September 2008 were impacted by the global market conditions. Core operating income for three months and nine months periods ended September 2008 grew by 52% and 44% respectively over corresponding periods of 2007. NBF has been prudent in providing for potential impairment losses against credit exposures given current market conditions," said Steve Mullins, CEO.
For the nine months period, core operating income, excluding investment fair values, showed a growth of 44.4% compared to the corresponding period of 2007. Core businesses maintained strong growth on the back of volumes despite pressure on margins. Net interest income rose by 39.36% and fee income grew by 40.72%. NBF's foreign exchange income doubled to AED 30.75 million compared to the corresponding period of 2007.
"NBF's liquidity and capital adequacy ratios have been strengthened during the quarter on the back of subordinated debt of AED 400 million and a new syndicated loan facility of US$ 210 million equivalent which replaced the previous facility of US$ 130 million. This new funding supported the Bank in managing liquidity better during difficult market conditions and NBF remained in compliance with Central Bank regulatory ratios" added Mullins.
Total assets of AED 13.76 billion grew by 34.34% over 30 September 2007. Total shareholders' equity as of 30th September 2008 stood at AED 1.68 billion and the bank's capital adequacy ratio at period end stood at 15.5% against the Central Bank minimum of 10%.
Operating expenses increased by 34.89% largely due to investment in governance and infrastructure and strengthening of human capital. Cost to income ratio was 51.82% compared to 31.89% in the corresponding quarter of 2007 which reflects lower earning levels; however, adjusted for loss / income from investments, the ratio would be 35.56% and 38.06% for respective periods in line with management expectations.
About National Bank of Fujairah
National Bank of Fujairah started operations in 1984 in the Emirate of Fujairah. Its key shareholders include the Government of Fujairah (39%) and the Government of Dubai (10%). It is primarily a corporate bank with strong trade finance expertise, and growing businesses in Wealth Management and Commercial Banking. National Bank of Fujairah is currently deepening its product range by selectively expanding its retail banking services while continuing to build its core businesses. NBF's current branch network stands at 12.
NBF is listed on the Abu Dhabi Securities Market under the symbol "NBF".
Corporate Communications Department
Telephone: +971 4 397 1700
Facsimile: +971 4 3972 371