National Bank of Fujairah PSC (NBF) 2011 half year profit soars 51%
Results underpinned by solid core business performance Growing loan book establishes a strong platform for future growth
National Bank of Fujairah PSC (NBF) is pleased to announce its results for the half year ended 30 June 2011.
Highlights:
- NBF recorded a net profit of AED 125.2 million compared to AED 83.0 million in 2010
- Results were driven by strong core business performance, effective balance sheet management and reduction in loan loss provision
- Loan loss provision was AED 62.5 million compared to AED 97.2 million in the corresponding period of 2010
- Operating income grew by 8.1%
- Cost-to-income ratio of 38.9% (2010: 36.7%) reflects investment in new initiatives to fuel growth
- Strong capital adequacy and advances-to-deposits ratios were maintained at 21.5% (Tier 1 ratio of 13.5%) and 85.0%, well ahead of Central Bank minimum requirements
- Total assets of AED 14.0 billion were up 8.3% from AED 12.9 billion at year end and 12.0% up from June 2010
- Total loans and advances of AED 9.5 billion were up 8.9% from AED 8.7 billion at year end and 15.4% up from June 2010
- Return on assets was 1.8% compared to 1.3% for the corresponding period in 2010
- Return on equity was 13.1% compared to 9.4% for the corresponding period in 2010
H.E. Sir Easa Saleh Al Gurg, Deputy Chairman commented:
"We are pleased that these results are starting to show the progress the bank is making. They clearly indicate the success of our strategy of sustained core business growth in the UAE. Our focus on financial stability helped the Bank emerge much stronger from the financial crisis and our sustained market presence undoubtedly contributed to the Bank's solid half year profit growth of 50.9%. Going forward, the bank will continue to leverage its strong liquidity and capital adequacy positions to capitalise on new business opportunities in the UAE."
National Bank of Fujairah PSC (NBF) has, for the six months of 2011, recorded a profit of AED 125.2 million compared to a profit of AED 83.0 million in the corresponding period of 2010.
Operating income increased by 8.1% to AED 301.2 million compared to AED 278.5 million in the corresponding period of 2010. NBF's net interest income of AED 198.9 million registered a growth of 13.6% over the last year's AED 175.1 million. This reflected a strong performance in the Bank's core business and effective balance sheet management. Operating expenses rose by 14.4% from AED 102.3 million to AED 117.1 million as a result of greater investment in new initiatives. The cost to income ratio was 38.9%.
A gain on investment of AED 3.6 million was recognised through the statement of income, compared to AED 3.9 million for the corresponding period of 2010.
The loan book grew by 8.9% in an environment of subdued credit demand. Total assets grew to AED 14.0 billion from AED 12.9 billion at the end of 2010.
NBF continues to have one of the strongest capital adequacy ratios and liquidity positions in the UAE. As at 30 June 2011, the Bank's total capital adequacy ratio was 21.5% and Tier 1 ratio was 13.5%. The advances-to-deposits ratio was 85.0%.
About National Bank of Fujairah PSC:
Incorporated in 1982, the National Bank of Fujairah (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, KCVO, CBE. It is listed on the Abu Dhabi Securities Exchange under the symbol "NBF" and has a branch network of 13 across the UAE.