National Bank of Fujairah PJSC (NBF) 2013 half year profit saws by 35.5%
Progress reaffirms bank’s ongoing focus on its core businesses and service delivery
National Bank of Fujairah PSC (NBF) is pleased to announce its results for the half year ended 30 June 2013.
- NBF recorded a net profit of AED 183.5 million compared to AED 135.5 million in the corresponding period of 2012.
- Operating profit was AED 260.3 million compared to AED 219.0 million in the corresponding period of 2012.
- Loan loss provision was AED 76.8 million compared to AED 83.6 million in the corresponding period of 2012, an improvement of 8.1%. NPL ratio improved to 6.7% from 11.5% at 30 June 2012 and 7.6% at year end.
- Total provision coverage improved to 91.1% from 50.4% at 30 June 2012 and 79.7% at 31 December 2012.
- Operating income grew by 15.4% and foreign exchange and derivatives income experienced a growth of 27.3%.
- Operating expenses increased by 9.7%, which reflected ongoing investment in new initiatives and operating platforms to enhance NBF's customer service experience. Cost-to-income ratio improved to 36.4% compared to 38.3% in the corresponding period of 2012.
- Strong capital adequacy and advances-to-deposits ratios were maintained at 18.7% (Tier 1 ratio: 15.2%) and 89.3% respectively; well ahead of Central Bank minimum requirements.
- Total assets of AED 18.4 billion were up 4.6% from AED 17.5 billion at year end and up 15.6% from 30 June 2012.
- Loans and advances of AED 13.3 billion were up 9.2% from AED 12.2 billion at year end and up 15.7% from 30 June 2012.
- Shareholders' equity (excluding dividends) of AED 2.8 billion was up 31.2% from AED 2.2 billion at year end and up 35.3% from 30 June 2012.
- Return on average assets was 2.0% compared to 1.8% for the corresponding period in 2012.
- Return on average equity was 14.4% compared to 13.0% for the corresponding period in 2012.
H.E. Sir Easa Saleh Al Gurg, KCVO, CBE Deputy Chairman said: "We are pleased to report that the bank's unwavering focus on its core businesses and service delivery has continued to strengthen its financial position and enhanced its capacity for further growth. We continue to augment our service channels for the benefit of our customers, while recent industry recognition of our core strengths in commercial banking, treasury and trade finance reaffirms their ongoing faith and support for the bank.
"Our consistent financial results, strong capital position, robust liquidity and prudent business policies continue to form the bedrock of the bank's future growth. The bank remains committed to achieving its long-term vision of becoming the preferred business bank of the UAE by capitalising on new market opportunities, maximising shareholder returns and partnering customers in their ongoing success."
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 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, Easa Saleh Al Gurg Company LLC and Investment Corporation of Dubai. It is listed on the Abu Dhabi Securities Exchange under the symbol "NBF" and has a branch network of 14 across the UAE.