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National Bank of Fujairah PJSC (NBF) – 2016 half year operating profit grows 10.1% reflecting the strength of core business

Continuing strong operating performance places the bank well for the future

National Bank of Fujairah PJSC (NBF) is pleased to announce its results for the six month period ended 30 June 2016.


  • Operating income experienced a growth of 8.5%. Net interest income and net income from Islamic financing and investment activities grew by 5.8%, net fees and commission income by 6.6%, foreign exchange and derivatives income marked a growth of 26.7% and income from investments doubled compared to the corresponding period of 2015.
  • Operating expenses increased by 5.8%, reflecting on-going investment in NBF’s business and service platforms and disciplined cost management. Cost-to-income ratio improved to 34.8% compared to 35.7% (June 2015) on the back of operational and cost efficiencies.
  • Operating profit was AED 429.8 million compared to AED 390.5 million in the corresponding period of 2015; a rise of 10.1%. Furthermore, fee to income ratio stood at 37.3% compared to 35.7% in the corresponding period of 2015.
  • Net impairment losses were AED 154.7 million compared to AED 86.9 million in the corresponding period of 2015. This reflects NBF’s prudent loan loss provisions in response to the more challenging operating environment. The NPL ratio was 4.76% compared to 4.72% as at 31 December 2015. Total provision coverage ratio improved to 109.1% compared to 107.7% as at 31 December 2015.
  • NBF posted a net profit of AED 275.1 million compared to AED 303.6 million in the corresponding period of 2015, depicting a decline of 9.4% year-on-year against an exceptionally strong first half of 2015 and to secure prudent provisions in view of the credit stress in the market.
  • Loans and advances and Islamic financing receivables of AED 21.1 billion were up by 7.3% from AED 19.7 billion at 2015 year end, and up by 14.6% from 30 June 2015.
  • Customer deposits and Islamic customer deposits of AED 22.6 billion were up by 4.7% from AED 21.6 billion at 2015 year end, and up by 16.2% from 30 June 2015.
  • Shareholders’ equity of AED 4.4 billion was up by 3.8% from 2015 year end, and up by 9.2% from 30 June 2015.
  • Strong capital adequacy and lending to stable resources ratios were maintained at 17.9% and 86.3% respectively, well ahead of Central Bank’s minimum requirements.
  • Return on average assets was 1.8% and return on average equity was 12.6%.
  • NBF surpassed itself when the bank was voted “Best Corporate Bank UAE” and “Best Commercial Bank UAE” at this year’s Banker Middle East Industry Awards. This latest victory at the BME Awards marks the second year that NBF has retained the best local corporate bank trophy, and more impressively, defended its best domestic commercial bank title for five years in a row. Such market endorsements serve to reaffirm our strategic business focus and the strong support that we are privileged to receive from our clients over the years.  

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

“It is great to see NBF maintain its growth momentum in the current environment through the staunch attention to its core business focus and the related treasury, retail and investment businesses. The bank has delivered a good set of results in the face of rapidly-changing market conditions, underpinned by its strong focus and commitment to long term sustainability. We are also delighted to see the growing market recognition for NBF that stems from its industry specialisations and constant efforts to build on the bank’s service excellence. It is also encouraging to witness the steady growth achieved by NBF Islamic, the bank’s Shariah-compliant window, launched in response to customer demand as well as to complement the recent focus on developing the Islamic economy in the UAE.  

“NBF’s resilient operating performance enables it to face the uncertain operating environment confidently and provides a strong base for future growth. Effective risk management, good governance and proactive business management are vital elements for ongoing success, and we remain committed to create exceptional value for our customers and 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 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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