National Bank of Fujairah PSC Q1 Results 2009
First Quarter Results reflect return on prudent policies and suggests solid basis for ongoing growth.
National Bank of Fujairah PSC is pleased to announce its results for the first quarter, 2009.
- NBF returns to profitability with net profit of AED 30.3 million, Q1 2009
- Strong capital adequacy and advances to deposits ratios of 19% and 85% well above Central Bank minimum requirements
- Total assets of AED 11.9 billion and total shareholders' equity of AED 1.6 billion
H.E. Sir Easa Saleh Al Gurg, Deputy Chairman commented:
"This is a solid set of results in one of the most challenging economic environments we have ever seen. Following the full year loss of 2008, these results mark a welcome return to profitable operations. The Bank will continue its prudent approach in the unprecedented market conditions and will pursue selective opportunities for achieving steady growth and adding value for its shareholders."
National Bank of Fujairah PSC (NBF) has, for the three month period ended 31st March 2009, recorded a net profit of AED 30.3 million. In the corresponding period in 2008, NBF returned a profit of AED 55.4 million. The decline in profit reflects deteriorated credit and strained liquidity conditions and general economic slow down.
The loan loss charge for the quarter is AED 24.2 million compared to a net recovery of AED 0.6 million in the first quarter of 2008. The Bank continues to be prudent in providing for potential impairment losses against credit exposures.
Operating income reduced marginally to AED 114.1m in comparison to Q1 2008 of AED 122.3m reflecting the general slowdown in economic activity and higher cost of funds due to market conditions. The liquidity cost in the market has been unprecedently higher and has impacted net interest income and profit, despite the Bank's prudent liquidity management. Net interest income and foreign exchange income rose by 2.2% and 1.5% respectively compared to the corresponding period of 2008.
In line with the bank's strategy, the investment (funds) portfolio was reduced to AED 144.3m from AED 227.4m as at 31 December 2008. As a result, a modest loss on investment of AED 0.8 million, was recognized through the Profit and Loss Account, compared to a loss of AED 30.3 million for the corresponding quarter of 2008.
Total assets stood at AED 11.9 billion, down from AED 12.8 billion at the year end. The reduction in the balance sheet reflects the Bank's risk appetite and prudent liquidity and capital management. Advances to deposits ratio was prudently managed at 84.6% at 31 March 2009. The Bank's capital adequacy ratio at the end of the quarter stood at 18.6% against the Central Bank minimum requirement of 10%.
Operating expenses increased by 33.0% largely due to investment in infrastructure and strengthening of human capital. The cost to income ratio, excluding loss on investments, was 51.6% compared to 36.2% in the corresponding quarter of 2008, which reflects lower earnings level.
For further information, please contact:
John Hobday +971504648706
Hugh Barker +971502487620
About National Bank of Fujairah:
National Bank of Fujairah was founded in 1984 in the Emirate of Fujairah. Shareholders include the Government of Fujairah (39%) and the Government of Dubai (10%).
NBF's core activity is corporate banking, with strong trade finance expertise. The Bank has growing commercial banking and treasury facilities.
National Bank of Fujairah is continuing to build its core businesses. NBF's current branch network stands at 12.
NBF is listed on the Abu Dhabi Securities Exchange under the symbol "NBF".