National Bank of Fujairah PJSC (NBF) marks its best full-year performance ever with a 28.6% growth in net profit in 2013
Board recommends a 25% increase in dividends
National Bank of Fujairah PSC (NBF) is pleased to announce its results for the year ended 31 December 2013, which have been submitted to the Central Bank for approval.
- NBF recorded a net profit of AED 393.1 million compared to AED 305.8 million in 2012; its highest ever.
- Operating profit was AED 560.7 million compared to AED 479.5 million in 2012.
- Loan loss provision was AED 167.6 million compared to AED 173.7 million in 2012; an improvement of 3.5%. The NPL ratio improved to 4.6% from 7.6% in the same period.
- Total provision coverage improved to 118.4% from 79.7% in 2012.
- Operating income grew by 16.5% and foreign exchange and derivatives income experienced a growth of 12.3%.
- Operating expenses increased by 15.7%; reflecting ongoing investment in enhancing NBF's business and service platforms. Nonetheless, cost-to-income ratio improved to 36.6% from 36.9% in 2012, reflecting the bank's emphasis on customer service and process efficiencies.
- Strong capital adequacy and advances-to-deposits ratios were maintained at 17.8% (Tier 1 ratio: 14.4%) and 84.0% respectively; well ahead of Central Bank minimum requirements.
- Total assets of AED 21.5 billion were up 22.3% from AED 17.5 billion at 2012 year end.
- Loans and advances of AED 14.3 billion were up 17.5% from AED 12.2 billion at 2012 year end.
- Customer deposits of AED 15.0 billion were up 24.6% from AED 12.0 billion at 2012 year end.
- Shareholders' equity of AED 3.0 billion, achieved through a combination of the bank's profit retention as well as the AED 500 million of Tier 1 capital notes it issued in Q1 2013, was up 33.5% from AED 2.3 billion at 2012 year end.
- Return on average assets was 2.0% compared to 1.9% in 2012.
- Return on average equity was 14.8% compared to 14.1% in 2012.
- Cash dividends of 12.5% (2012: 10%) of paid-up capital have been recommended; a growth of 25% from 2012.
H.H Sheikh Saleh Bin Mohamed Bin Hamad Al Sharqi, NBF Chairman said:
"National Bank of Fujairah has every reason to be proud of its success. Not only has it demonstrated resilience during the recent market crisis, the bank's focus on its core business, service quality and prudent risk management has enabled it to outperform the industry average for a fourth year running to achieve its best profit ever. Most importantly, as market sentiment improves, the bank has established a firm foundation and stands ready to leverage the exciting developments in the regional economy for further growth.
"In view of the bank's record performance I, on behalf of the Board of Directors, am pleased to recommend an increase in dividend of 25% and propose a distribution of profits, in the form of cash dividends, of 12.5% (2012: 10%) of paid-up capital."
H.E. Sir Easa Saleh Al Gurg, KCVO, CBE Deputy Chairman said:
"NBF's consistently strong performance underscores its focus on delivering long term sustainable results, while the market recognition it has garnered over the years is reaffirmation of the bank's commitment to its client relationships and the development of the local banking sector.
"With positive developments, such as the Dubai Expo and the ongoing infrastructure based investment in Abu Dhabi and Fujairah, providing momentum for the next leg of the UAE's growth journey, NBF foresees even more positive conditions going forward. As NBF commemorates its 30th anniversary this year, we would like to take this opportunity to thank our customers, shareholders and business partners for their support, without which the bank's success would not have been possible. We look forward to scaling new heights together."
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.