National Bank of Fujairah PSC shareholders approve 2009 Annual Report
National Bank of Fujairah PSC (NBF) held its Annual Ordinary General Meeting today at Al Diar Siji Hotel in Fujairah. The shareholders considered and approved the Chairman’s report on the Bank’s activities and its consolidated financial statements for the year ended 31 December 2009.
The Bank posted a solid set of results in one of the most challenging economic environments we have ever seen and marked a welcome return to profitable operations. The Bank recorded a profit of AED 104.3 million for the year compared to a loss of AED 50.3 million for 2008. The results reflect the strength of the Bank's core customer base and were achieved despite difficult credit conditions. The provision for possible loan losses was AED 214.3 million for the year compared to AED 179.7 million for 2008. These provisions include an amount of AED 73.5 million in respect of the Bank's exposure of AED 91.8 million to the Al Gosaibi and Saad Groups of Saudia Arabia. The Bank continues to be prudent and proactive in providing for potential loan losses in view of continuing uncertain market conditions. Financial stability was underpinned by further strengthening of the capital adequacy ratio to 22.4% (Tier 1 Ratio: 14.2%) and the advances to deposits ratio to 78.4% which are among the strongest in the UAE banking sector. In order to competitively position the Bank in current market conditions and to increase long term shareholder value, the Bank retained 100% of 2009's profit.
The Bank also embarked upon its renewed vision which was announced by HH Sheikh Saleh Bin Mohammed, Chairman of the Bank:
"The Bank for Business in the UAE and the Pride of Fujairah."
The Chairman added:
"We are pleased to see the Bank's return to profitable operations and the new vision re-affirms our commitment to grow the Bank's operations and play our role in the development of the local economy".
HE Sir Easa Saleh Al Gurg, Deputy Chairman commented:
"The Bank's strategy going forward is to leverage its current strong position by growing its business prudently and efficiently in the local economy in existing core areas of Corporate and Commercial Banking, Trade Finance and Treasury. Our broader proposition in the Fujairah Region will continue to be developed in line with the Bank's diversification strategy for achieving steady growth and adding value for its shareholders."