National Bank of Fujairah PSC (NBF) 2010 First Quarter Profit up 25.7%
Results reflect sustained core business growth
National Bank of Fujairah PSC (NBF) is pleased to announce its results for the first quarter, 2010.
Highlights:
- NBF recorded net profit of AED 38.1 million compared to AED 30.3m in 2009
- Results were driven by core operations despite higher loan losses. Net Loan portfolio grew by AED 275 million.
- Loan loss provision for the first quarter was AED 47.6 million compared to AED 24.2m in 2009. Portfolio loan loss provision of AED 145.2 million maintained at March 2010.
- Investment income of AED 1.7m compared to loss of AED 0.8m in 2009.
- Cost to income ratio improved to 37.5% from 51.6% in Q1 2009.
- Strong capital adequacy and advances to deposits ratios maintained at 23.2% (Tier 1: 14.7%) and 82.8% well ahead of Central Bank minimum requirements.
- Total assets of AED 11.8 billion and total shareholders' equity of AED 1.7 billion.
H.E. Sir Easa Saleh Al Gurg, KCVO, CBE, Deputy Chairman commented:
"Our strategy of financial stability with an enhanced focus on sustained business growth in the UAE is showing results. The Bank saw a profit growth of 25.7% in the first quarter of 2010, despite providing for higher credit losses, on the back of strong growth in core business operations. The Bank's liquidity and capital adequacy ratios are stronger which coupled with the build-up in provisioning levels will enable stable growth of the Bank."
National Bank of Fujairah PSC (NBF) has, for the first quarter of 2010, recorded a net profit of AED 38.1 million compared to a net profit of AED 30.3 million in the corresponding period of 2009.
Operating income increased to AED 134.4 million in comparison to Q1 2009 of AED 114.1 million reflecting growing business volumes and balance sheet management. The liquidity cost in the market continues to be at unprecedented high levels and has had an impact on net interest income and profit.
Net interest income of AED 87.4 million registered a growth of 14.1% over Q1 2009 net interest income of AED 76.6 million. Non-interest income of AED 46.9 million is 25.2% higher than Q1 2009 non-interest income of AED 37.5 million.
In line with the Bank's strategy, the investment (funds) portfolio was reduced to AED 49.5 million from AED 56.6 million as at 31 December 2009. A gain on investment of AED 1.7 million was recognized through the statement of income, compared to a loss of AED 0.8 million for the corresponding period of 2009.
Operating expenses of AED 50.4 million were 14.3% lower than Q1 2009 operating expenses of AED 58.8 million reflecting effective cost control. Cost to income ratio improved to 37.5% compared to 51.6% in 2009.
Total assets stood at AED 11.8 billion.