National Bank of Fujairah PJSC (NBF) Q1 2015 net profit up by 29.6%
Continued growth momentum maintained on the back of bank’s solid business focus and service delivery
National Bank of Fujairah PJSC (NBF) is pleased to announce its results for the three month period ended 31 March 2015.
Highlights:
- NBF recorded a net profit of AED 149.5 million compared to AED 115.3 million in the corresponding period of 2014; a jump of 29.6%.
- Operating profit was AED 188.3 million compared to AED 151.5 million in the corresponding period of 2014; a rise of 24.3%.
- Net impairment losses were AED 38.8 million compared to AED 36.2 million in the corresponding period of 2014. The large portion of the charge now represented by mandatory general provision was a reflection of strong growth in the loan book. The quality of assets continues to improve as evidenced by the reduction in the NPL ratio from 4.5% to 3.9%.
- Total provision coverage improved to 133.1% from 121.7% at 31 March 2014.
- Operating income experienced a growth of 22.9%. Net interest income grew by 19.1% and foreign exchange and derivatives income marked a growth of 42.0% compared to the corresponding period of 2014.
- Operating expenses increased by 20.5%, reflecting on-going investment in NBF's business and service platforms. Cost-to-income ratio improved to 36.2% from 36.9% in the corresponding period of 2014.
- Loans and advances of AED 17.7 billion were up by 8.5% from AED 16.3 billion at 2014 year end, and up by 20.9% from 31 March 2014.
- Customer deposits of AED 18.5 billion were up by 2.9% from AED 17.9 billion at 2014 year end, and up by 16.1% from 31 March 2014.
- Shareholders' equity went up by 16.4% to AED 3.9 billion compared to 2014 year end. The bank issued the second tranche of Tier 1 capital amounting to AED 500 million in line with its growth plans, thus enhancing its Tier 1 capital ratio and quality of capital. Strong capital adequacy and lending to stable resources ratios were maintained at 18.4% (Tier 1 ratio: 15.6%) and 88.3% respectively, well ahead of Central Bank minimum requirements.
- Return on average assets was 2.3%, up from 2.1% for the corresponding period in 2014.
- Return on average equity was 16.4%, up from 15.3% for the corresponding period in 2014.
H.E. Sir Easa Saleh Al Gurg, KCVO, CBE Deputy Chairman said:
"The bank's positive start to 2015 continues to reaffirm the efficacy of our long term strategies and our solid financial position. That we were able to maintain good growth in net and operating profits just goes to show that there are still good opportunities in the market, and the success of our recent private placement is an encouraging reminder of the market's confidence in us. We look forward to leveraging the growing levels of support to propel the bank to greater success.
"Backed by a stronger capital position, robust liquidity and prudent policies, we will maintain an unwavering focus on sustainable growth, client relationships and supporting the long-term development of the local economy."
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 and Shariah compliant services. 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 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.