National Bank of Fujairah PJSC (NBF) Q1 2014 net profit jumps 27.1%
Performance reflects solid progression of core business
National Bank of Fujairah PJSC (NBF) is pleased to announce its results for the three month period ended 31 March 2014.
Highlights:
- NBF recorded a net profit of AED 115.3 million compared to AED 90.7 million in the corresponding period of 2013; an improvement of 27.1%.
- Operating profit was AED 151.5 million compared to AED 127.5 million in the corresponding period of 2013; an improvement of 18.8%.
- Net impairment losses were AED 36.2 million compared to AED 36.8 million in the corresponding period of 2013; an improvement of 1.7%. The NPL ratio also improved to 4.3% from 4.6% at 31 December 2013 and 7.2% at 31 March 2013.
- Total provision coverage was 121.7%; a steady improvement from 118.4% at 31 December 2013 and 86.9% at 31 March 2013.
- Net interest income grew by 24.0% and operating income grew by 20.2% compared to the corresponding period of 2013.
- Operating expenses increased by 22.6%, reflecting ongoing investment in enhancing NBF's business and service platforms. Cost-to-income ratio stood at 36.9% compared to 36.2% in the corresponding period of 2013.
- Strong capital adequacy and advances-to-deposits ratios were maintained at 17.5% (Tier 1 ratio: 14.3%) and 86.1% respectively, well ahead of Central Bank minimum requirements.
- Total assets of AED 22.7 billion were up 5.7% from AED 21.5 billion at 2013 year end, and up by 27.4% from 31 March 2013.
- Loans and advances of AED 15.5 billion were up 8.1% from AED 14.3 billion at 2013 year end, and up by 24.1% from 31 March 2013.
- Customer deposits of AED 15.9 billion were up 6.0% from AED 15.0 billion at 2013 year end, and up by 38.7% from 31 March 2013.
- Return on average assets improved to 2.09% compared to 2.05% for the corresponding period in 2013.
- Return on average equity improved to 15.3% compared to 14.5% for the corresponding period in 2013.
- NBF's Baa1 / Prime-2 deposit rating from Moody's and BBB+ / A-2 rating from Standard & Poor's reaffirm the success of the bank's strategy, customer focus and commitment to sustainable shareholder returns. Both set of investment grade ratings, NBF's first from the two agencies, carry a stable outlook.
H.E. Sir Easa Saleh Al Gurg, KCVO, CBE Deputy Chairman said:
"NBF's strong start to 2014 highlights not just the success of the bank's strategy of steady and sustainable growth, but the renewed optimism that has started to take root in the country.
Our performance, evidenced in the growth in operating income, operating profit and net profit, is testament to the strength and sustainability of our core business. Re-invigorated by a respectable external rating profile and backed by robust liquidity, stronger capital position and prudent policies, we are confident that we will be able to partner our customers to achieve greater heights together with the strong support of our shareholders."
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. It is listed on the Abu Dhabi Securities Exchange under the symbol "NBF" and has a branch network of 14 across the UAE.