National Bank of Fujairah PSC's (NBF) Q1 2013 net profit jumps 40.7%
Results reflect strong ongoing core business performance. AED 500 million Tier 1 capital notes issued to augment growth strategy
National Bank of Fujairah PSC (NBF) is pleased to announce its results for the three month period ended 31 March 2013.
Highlights:
- NBF recorded a net profit of AED 90.7 million compared to AED 64.5 million in the corresponding period of 2012.
- Operating profit was AED 127.5 million compared to AED 107.8 million in the corresponding period of 2012.
- Loan loss provision was AED 36.8 million compared to AED 43.4 million in the corresponding period of 2012, an improvement of 15.1%. NPL ratio improved to 7.2% from 11.1% at 31 March 2012 and 7.6% at year end.
- Total provision coverage improved to 86.9% from 53.4% at 31 March 2012 and 79.7% at 31 December 2012.
- Operating income grew by 12.6%. Our award winning treasury unit had a record quarter with a growth of 49.3%.
- Operating expenses increased by 3.7%, which reflected ongoing investment in new initiatives and operating platforms to enhance NBF's customer service experience. Cost-to-income ratio improved to 36.2% compared to 39.2% in the corresponding period of 2012.
- The bank strengthened its capital structure by issuing Tier 1 capital instruments in line with growth plans, thus enhancing its Tier 1 capital ratio and quality of capital. Strong capital adequacy and advances-to-deposits ratios were maintained at 19.9% (Tier 1 ratio: 16.2%) and 85.5% respectively, well ahead of Central Bank minimum requirements.
- Total assets of AED 17.8 billion were up 1.5% from AED 17.5 billion at year end, up 14.0% from 31 March 2012. The growth was achieved after absorbing the impact of the advance repayment of the AED 643 million subordinated facility from the UAE Ministry of Finance.
- Loans and advances of AED 12.5 billion were up 2.2% from AED 12.2 billion at year end, up 12.9% from 31 March 2012.
- Shareholders' equity (excluding dividends) of AED 2.8 billion was up 27.4% from AED 2.2 billion at year end, up 36.2% from 31 March 2012.
- Return on average assets was 2.1% compared to 1.7% for the corresponding period in 2012.
- Return on average equity was 14.5% compared to 12.6% for the corresponding period in 2012.
H.E. Sir Easa Saleh Al Gurg, KCVO, CBE Deputy Chairman said: "The local economy is showing signs of recovery and the bank's solid start to 2013 is in line with the gradual return of confidence to the marketplace. The commendable growth in the bank's net and operating profits once again demonstrates the bank's strong core business performance and improving credit profile. Backed by a stronger capital position, robust liquidity and prudent policies, we will continue to maintain our focus on sustainable growth, customer satisfaction and shareholder returns by leveraging the new found optimism within the UAE."
About National Bank of Fujairah PSC:
Incorporated in 1982, National Bank of Fujairah PSC (NBF) is a full services corporate bank with strong corporate and commercial banking, treasury and trade finance expertise as well as an expanding suite of personal banking options. Leveraging its deep banking experience and market insight withinFujairahand 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, Easa Saleh Al Gurg Company LLC and Investment Corporation ofDubai. It is listed on the Abu Dhabi Securities Exchange under the symbol "NBF" and has a branch network of 14 across the UAE.