National Bank of Fujairah PSC (NBF) 2010 net profit surges 64% to AED 170.9 million
National Bank of Fujairah PSC (NBF) 2010 net profit surges 64% to AED 170.9 million
National Bank of Fujairah PSC (NBF) is pleased to announce its results for 2010 which are being submitted for Central Bank's approval
Highlights:
- NBF recorded a profit of AED 170.9 million compared to AED 104.3 million in 2009
- Results were driven by strong core business performance and robust cost and balance sheet management in difficult credit conditions
- Operating income grew by 12.2% and operating costs were reduced by 7.9 %
- Exchange income of AED 42.3 million compared to AED 35.3 million
- Cost to income ratio improved from 44.5% to 36.6 %
- Additional loan loss provision of AED 205.0 million was made compared to AED 214.3 million in 2009
- Strong capital adequacy and advances to deposits (AD) ratios of approximately 21% (Tier 1 Ratio:14%) and 87.2% are well ahead of Central Bank minimum requirements
- Total assets of AED 12.9 billion and total shareholders' equity of AED 1.8 billion
- Cash dividend of 6.2% of paid-up capital has been recommended
H.H. Sheikh Saleh Bin Mohammed Al Sharqi, Chairman commented
"We are pleased to see the Bank make strong progress in achieving its best operating performance ever during these challenging times. The Bank has grown its core earnings which, coupled with a sharper focus on costs and balance sheet management, has helped absorb credit losses and grow profitable operations. I, on behalf of the Board of Directors, am pleased to recommend a distribution of profits by way of cash dividends of 6.2% of the paid-up capital."
H.E. Sir Easa Saleh Al Gurg, >KCVO, CBE ,Deputy Chairman commented:
"The Bank's performance is a testament to the success of its well-balanced strategy in these difficult times. The Bank leveraged its strong liquidity and capital position and grew its business prudently and efficiently in the local economy. Our business in Fujairah, in particular, saw a record growth in 2010. The Bank will continue to improve its market position by strengthening its customer-centric approach and product focus, and will continue to seek new lending opportunities as the market continues to recover."
National Bank of Fujairah PSC (NBF) recorded its highest operating profit of AED 375.9 million in 2010 compared to AED 318.6 million in 2009. The Bank recorded a profit of AED 170.9 million for the year compared to a profit of AED 104.3 million for 2009, a solid 64% growth in net profit driven mainly by its core business.
The provision for loan losses was AED 205.0 million for the year compared to AED 214.3 million for 2009. The Bank continues to be prudent and proactive in providing for potential loan losses in view of ongoing uncertain market conditions.
Operating income increased by 12.2% to AED 568.0 million in comparison to AED 506.5 million for 2009, reflecting strong core business performance and balance sheet management. Operating expenses of AED 207.7 million were 7.9% lower than 2009 operating expenses of AED 225.5 million. The Bank's cost to income ratio improved to 36.6% as compared to 44.5% in 2009.
Net interest income grew by 10.2% to AED 360.1 million compared to AED 326.9 million in 2009. Non-interest income, at AED 207.9 million, was 15.8% higher than the AED 179.6 million in 2009. Exchange income, including derivative income, saw a growth of 20.0% to AED 42.3 million.
A gain on investment of AED 15.7 million was recognised through the statement of income, compared to AED 37.6 million for the corresponding period of 2009. The decline is in line with the Bank's strategy to reduce market risk and an enhanced focus on its core business. Investment in funds was reduced to AED 42.3 million.
The loan book grew by 11.5% in an environment of subdued credit demand and reflected the Bank's strong relationships with its core customers. Total assets grew to AED 12.9 billion from AED 11.9 billion at the end of 2009.
NBF's capital adequacy ratio and liquidity position continues to be one of the strongest in the UAE. As of 31 December, the Bank's AD ratio was 87.2% after absorbing a 6% drop in syndicated borrowing as its maturity falls within six months. NBF's syndicated borrowing amounting to USD 210 million is set to mature on 25 June 2011.
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. It is listed on the Abu Dhabi Securities Market under the symbol "NBF" and has a branch network of 12 across the UAE