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NBF’s operating profit grows 20.2% reflecting the strength of our core business

Loans and deposits show similar increase, positioning the bank well for the future

National Bank of Fujairah PJSC (NBF) is pleased to announce its results for the year ended 31 December 2015, which have been submitted to the Central Bank of the UAE for approval.


  • Operating income experienced a growth of 18.3%. Net interest income grew by 17.7%, net fees and commission income by 16.7% and foreign exchange and derivatives income marked a growth of 28.5% as compared to 2014.
  • Operating expenses increased by 15.2%, reflecting on-going investment in NBF's business and service platforms. Cost-to-income ratio improved to 36.8% from 37.8% in 2015 on the back of operational and cost efficiencies.
  • Operating profit was AED 766.9 million compared to AED 637.8 million in 2014; a rise of 20.2%.
  • Net impairment losses were AED 208.1 million compared to AED 132.4 million in 2014. The NPL ratio was 4.7% compared to 4.4% in 2014. This reflects NBF's prudent and transparent approach towards loan loss provisions in response to a noticeable slowdown in the operating environment and rising levels of credit stress in the second half of the year. Specific provision coverage ratio improved to 63.8% from 56.6% in 2014.
  • NBF recorded its best net profit of AED 558.8 million compared to AED 505.4 million in 2014; an increase of 10.5%.
  • Loans and advances of AED 19.7 billion were up by 20.6% in 2015 from AED 16.3 billion at 2014 year-end.
  • Customer deposits of AED 21.6 billion were up by 20.5% from AED 17.9 billion at 2014 year end.
  • Shareholders' equity went up by 27.2% to AED 4.3 billion compared to AED 3.4 billion at 2014 year-end.
  • Strong capital adequacy and lending to stable resources ratios were maintained at 18.4% and 88.7% respectively, well ahead of Central Bank minimum requirements. During the year, the bank issued its second tranche of tier 1 capital amounting to AED 500 million which improved its Tier 1 capital ratio to 15.7% from 14.6% in 2014.
  • Return on average assets was 2.1% and return on average equity was 14.6%.
  • A distribution of profits of 15% has been recommended in the form of cash dividends of 7.5% (2014: 7.5%) and bonus shares of 7.5% (2014: 7.5%) of the paid-up capital.

H.H. Sheikh Saleh Bin Mohamed Bin Hamad Al Sharqi, Chairman said:

"I am pleased to inform you that the bank continues to make outstanding progress towards becoming one of the most well-respected banks in the UAE. NBF capped off an exceptional 2015 with a series of industry awards acknowledging its leadership in the local banking sector. It won "Best Commercial Bank - UAE" and "Best Corporate Bank - UAE" at the Banker Middle East Industry Awards (BME) whilst NBF Capital was awarded "Best Corporate Advisory Service" - achievements made all the more significant by the fact that winners are selected through public voting. NBF was also named "Best Local Bank - UAE" at the EMEA Finance ME Banking Awards. The past year has seen us build on our strong position by concentrating on our core business relationships and developing innovative ways to deliver exceptional service to our customers. Such ongoing efforts at raising the bar in terms of customer service have helped NBF grow its net profit and raise its profile as a reliable and consistent partner.

"Taking into account our outstanding performance, I, on behalf of the Board of Directors, am pleased to propose a distribution of profits of 15% (2014: 15%) in the form of cash dividends of 7.5% (2014: 7.5%) and bonus shares of 7.5% (2014: 7.5%) 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 not have been possible."

H.E. Sir Easa Saleh Al Gurg, KCVO, CBE Deputy Chairman said:

"NBF's best-ever performance was achieved in the face of difficult market conditions, underlining its focus on true value creation, connecting customers to opportunities and ensuring the long-term sustainability of its model. That the bank was able to achieve such a praiseworthy performance despite deteriorating market conditions is due to the hard work and dedication of its staff as well as the leadership's unwavering attention to prudent risk management and long-term growth. We remain optimistic of NBF's prospects and will continue to adopt sound asset and liability management, embrace market best practices and practise robust risk management and good governance to secure its future. With this in mind, I would like to personally thank the people at NBF for their efforts and look forward to another successful year for the bank."

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 for deposits and A3 for counterparty risk assessment 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.

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