National Bank of Fujairah PJSC (NBF) caps off a successful 2014 with its highest-ever net profit of AED 505.4 MILLION, A 26.8% increase over the previous year
Board of Directors recommends a 20% increase in dividends amounting to 15% of paid-up capital
National Bank of Fujairah PJSC (NBF) is pleased to announce its results for the year ended 31 December 2014, which have been submitted to the Central Bank of the UAE for approval.
Highlights:
- 2014 net profit grew 28.6% from AED 393.1 million in 2013 to AED 505.4 million, improving the bank's return on average assets to 2.2% from 2.0%.
- Operating profit was AED 637.8 million compared to AED 560.7 million in 2013; a growth of 13.8%.
- Net impairment losses were AED 132.4 million compared to AED 167.6 million in 2013; an improvement of 21.0%. The NPL ratio improved to 4.4% from 4.7% in 2013.
- Total provision coverage improved to 121.4% from 118.4% in 2013.
- Operating income grew by 15.9% and net interest income experienced a growth of 17.0% compared to 2013, reflecting robust asset and liability management.
- Operating expenses increased by 19.6% to AED 387.4 million as a result of the bank's efforts to develop new business streams and enhance operating platforms. Cost to income ratio, whilst increasing from 36.6% to 37.8%, is expected to normalise when the bank reaps further benefits from such investments in the years ahead.
- Loans and advances of AED 16.3 billion were up 17.8% from AED 13.9 billion in 2013.
- Customer deposits of AED 17.9 billion were up 19.6% from AED 15.0 billion in 2013.
- Strong capital adequacy and lending to stable resources ratios were maintained at 17.6% (Tier 1 ratio: 14.6%) and 87.0% respectively, well ahead of Central Bank's requirements.
- Return on average equity improved to 15.8% compared to 14.8% in 2013.
- A dividend of 15% of the paid-up capital has been recommended, an increase of 20%, in the form of cash dividends of 7.5% (2013: 12.5%) and bonus shares of 7.5% (2013: nil) of paid-up capital.
H.H. Sheikh Saleh Bin Mohamed Bin Hamad Al Sharqi, Chairman said:
"It brings me great pleasure to share the bank's excellent progress in 2014. The past year has seen us successfully adapting our business and operating platforms to better serve clients, deliver long term growth for the bank and enhance shareholder returns. Through this remarkable performance, the bank has not only outperformed the industry for a fifth consecutive year, but further established itself as one of the leading banks for business in the UAE and a source of pride for Fujairah.
"Taking into account our record-breaking performance, I, on behalf of the Board of Directors, am pleased to recommend a 20% increase in dividend distribution and propose a distribution of profits of 15% (2013: 12.5%); in the form of cash dividends of 7.5% (2013: 12.5%) and bonus shares of 7.5% (2013: nil) of the paid-up capital. I will also like to take this opportunity to thank our clients, shareholders, and last but not least, our staff, for their support, without whom the bank's unprecedented success would have been impossible."
H.E. Sir Easa Saleh Al Gurg, KCVO, CBE Deputy Chairman said:
"2014 was indeed a year of remarkable progress for the bank and there was much to be happy about our performance. In addition to achieving its highest profit ever in its 30 year operating history, the bank received its debut investment grade credit ratings from Moody's and Standard and Poor's, whilst the industry accolades that are regularly awarded to the bank further reaffirms NBF's reputation for service excellence and quality governance. The bank's new lines of business, from NBF Capital and NBF Islamic to its equipment finance unit, will no doubt play a significant role in the bank's ongoing success in the years ahead.
"As the UAE navigates its way to further success in the new year, we look forward to building on our distinctive competitive position and tremendous progress to better support the aspirations of the country as well as our customers."
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.