National Bank of Fujairah PSC (NBF) 2010 nine months profit surges 86.3%
Results reflect strong growth in operating profit from core business
National Bank of Fujairah PSC (NBF) is pleased to announce its results for the nine months ended 30 September 2010.
Highlights:
- NBF recorded net profit of AED 130.8 million compared to AED 70.2 million in 2009
- Loan loss provision was AED 148.5 million compared to AED 159.7 million in 2009
- Operating income grew by 14.9% and operating costs reduced by 12.4%
- Exchange income, including derivative income, was AED 32.3m compared to AED 26.5m in 2009
- Cost to income ratio improved from 48.3% in 2009 to 36.8%
- Strong capital adequacy and advances to deposits ratios were maintained at 22.2% (Tier 1 Ratio of 14.0%) and 78.8% well ahead of Central Bank minimum requirements
- Total assets of AED 12.5 billion and total shareholders' equity of AED 1.8 billion
- Capital Intelligence maintained the Bank's credit rating A-
- Management Trainee Program for UAE nationals was launched as part of the Bank's commitment to emiratisation
H.E. Sir Easa Saleh Al Gurg, KCVO, CBE, Deputy Chairman commented:
"We are pleased to see the Bank's strong progress towards exceeding its target operating performance on the back of cautious growth in its core business while making prudent provisions for loan losses in stressed credit conditions. The strong liquidity and capital adequacy positions place the Bank in a good position to capitalize on new business opportunities in the UAE. The maintenance of the Bank's credit rating by Capital Intelligence also re-affirms the success of its strategy and focus on financial stability."
National Bank of Fujairah PSC (NBF) has, for the nine months of 2010, recorded a profit of AED 130.8 million compared to a profit of AED 70.2 million in the corresponding period of 2009.
Operating income increased to AED 421.7 million from AED 367.2 million in the corresponding period of 2009 showing a growth of 14.8% despite the impact of unprecedented higher liquidity cost.
Net interest income of AED 266.0 million registered a growth of 13.6% over 2009 net interest income of AED 234.2 million. Non-interest income of AED 155.7 million is 17.1% higher than 2009 of AED 133.0 million. Exchange income, including derivative income, at AED 32.3m saw a growth of 21.8%.
In line with the Bank's strategy, the investment in funds was reduced to AED 43.7 million from AED 56.6 million as at 31 December 2009. A gain on investment of AED 12.7 million was recognised through the statement of income, compared to AED 40.0 million for the corresponding period of 2009.
Operating expenses of AED 155.2 million are 12.4% lower than 2009 operating expenses of AED 177.2 million. Cost to income ratio improved to 36.8% as compared to 48.3% in 2009.
Total assets grew to AED 12.5 billion from AED 11.9 billion at the end of 2009.
As part of NBF's commitment to emiratisation and the development of banking talent in the UAE, the Bank received its first batch of management trainees on 3 October. These 25 UAE nationals were selected out of 130 candidates and are currently undergoing a 6-to-12 month job rotation programme aimed at familiarising them to the Bank's business operations before they take their permanent roles with the Bank.
About National Bank of Fujairah PSC:
Incorporated in 1982, National Bank of Fujairah PSC (NBF) is a full services corporate bank with strong wholesale banking and trade finance expertise. Leveraging its deep banking experience and market insight within Fujairah and the UAE, NBF is well-positioned to build lasting relationships with its clients and help them achieve their business goals.
NBF's key shareholders include the Government of Fujairah, the Government of Dubai and business pioneer and community leader H.E. Sir Easa Saleh Al Gurg. It is listed on the Abu Dhabi Securities Exchange under the symbol "NBF" and has a branch network of 12 across the UAE.