National Bank of Fujairah PJSC (NBF) maintains record-breaking run with 28.9% net profit growth for the first nine months of 2014
Consistent double-digit growth in the medium term reaffirms efficacy of bank’s business focus and strong service delivery
National Bank of Fujairah PJSC (NBF) is pleased to announce its results for the nine month period ended 30 September 2014.
Highlights:
- NBF recorded a net profit of AED 369.2 million compared to AED 286.4 million in the corresponding period of 2013; a jump of 28.9%.
- Operating profit was AED 465.4 million compared to AED 402.6 million in the corresponding period of 2013; a rise of 15.6%.
- Net impairment losses were AED 96.1 million compared to AED 116.2 million in the corresponding period of 2013; an improvement of 17.3%. The NPL ratio stood at 4.7% compared to 6.1% at 30 September 2013.
- Total provision coverage was 118.5% compared to 97.0% at 30 September 2013.
- Net interest income grew by 16.7% and operating income grew by 17.3% compared to the corresponding period of 2013.
- Operating expenses increased by 20.3%; reflecting on-going investment in enhancing NBF's business and service platforms. Cost-to-income ratio stood at 37.1% compared to 36.2% in the corresponding period of 2013.
- Loans and advances of AED 15.9 billion were up 14.8% from AED 13.8 billion at 2013 year end, and up by 17.2% from 30 September 2013.
- Customer deposits of AED 16.5 billion were up 9.8% from AED 15.0 billion at 2013 year end, and up by 24.2% from 30 September 2013.
- Strong capital adequacy and lending to stable resources ratios were maintained at 16.01% (Tier 1 ratio: 13.02%) and 89.1% respectively; well ahead of Central Bank minimum requirements.
- Return on average assets improved to 2.2% from 2.1% for the corresponding period in 2013.
- Return on average equity improved to 15.7% from 14.7% for the corresponding period in 2013.
- As part of ongoing efforts to broaden its suite of services, the bank recently launched NBF Islamic to provide clients with a comprehensive suite ofSharia'compliant financial solutions. It also announced the establishment of an equipment finance unit to support companies and vendors in sectors ranging from transportation and logistics to healthcare and manufacturing.
H.E. Sir Easa Saleh Al Gurg, KCVO, CBE Deputy Chairman said:
"We are happy to report once again that the bank is progressing smoothly on its growth path, with its progression underpinned by a consistent focus on core business, product and service quality and risk management. The bank's strategic initiatives, such as the recently introduced Islamic banking proposition, have started to bear fruit, and with customers' continued support, our ongoing growth is assured.
"We will continue to leverage our award-winning capabilities and investments in infrastructure and technology to take customer service levels to greater heights and maximize shareholder returns. As a bank firmly rooted in the cultural heritage and economic success of the UAE, we will continue to play our part in its ongoing progress."
About National Bank of Fujairah PJSC:
Incorporated in 1982, National Bank of Fujairah PJSC (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. Rated Baa1 / Prime-2 by Moody's and BBB+ / A-2 by Standard & Poor's, both with a stable outlook, the bank is listed on the Abu Dhabi Securities Exchange under the symbol "NBF". It has a branch network of 15 across the UAE.