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National Bank of Fujairah PJSC (NBF) - Operating profit of first nine months of 2016 grows 8.2% demonstrating its continued focus on quality core business growth and agile operating platform

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


  • Operating income experienced a growth of 6.7%. Net interest income and net income from Islamic financing and investment activities grew by 4.8%, net fees and commission income by 6.0%, foreign exchange and derivatives income marked a growth of 13.7% and income from investments doubled compared to the corresponding period of 2015.
  • Operating expenses increased by 3.9%, reflecting on-going investment in NBF’s business and service platforms and disciplined cost management. Cost-to-income ratio improved to 34.9% compared to 35.9% (September 2015) on the back of operational efficiencies.
  • Operating profit was AED 634.2 million compared to AED 586.1 million in the corresponding period of 2015; a rise of 8.2%. Furthermore, fee to income ratio stood at 35.4% compared to 34.2% in the corresponding period of 2015.
  • Net impairment losses were AED 243.2 million compared to AED 132.3 million in the corresponding period of 2015. This reflects NBF’s prudent loan loss provisioning policy in response to the ongoing credit stress being experienced in the market. The bank’s NPL ratio was 4.77% compared to 4.72% as at 31 December 2015. Total provision coverage ratio improved to 111.6% compared to 107.7% as at 31 December 2015.
  • NBF posted a net profit of AED 390.9 million compared to AED 453.8 million in the corresponding period of 2015, depicting a decline of 13.9% as a result of the elevated level of provisions.
  • Loans and advances and Islamic financing receivables of AED 21.9 billion were up by 11.2% from AED 19.7 billion at 2015 year end, and up by 12.8% from 30 September 2015.
  • Customer deposits and Islamic customer deposits of AED 23.1 billion were up by 7.0% from AED 21.6 billion at 2015 year end, and up by 14.2% from 30 September 2015.
  • Shareholders’ equity of AED 4.5 billion was up by 5.7% from 2015 year end, and up by 8.3% from 30 September 2015.
  • Strong capital adequacy and lending to stable resources ratios were maintained at 18.0% and 88.4% respectively, well ahead of Central Bank’s minimum requirements.
  • Return on average assets was 1.7% and return on average equity was 11.8%.

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

“NBF continued to deliver strong operating results despite the challenging operating environment. Resilient performance is attributed to core business focus, prudent growth strategy and efficient operating model; while maintaining robust capital and liquidity positions. Our ongoing bank-wide cost management initiatives helped us to maintain a healthy cost to income ratio; whilst ensuring that we continue to invest in our businesses for the future. Enhancing the NBF brand, launching a new priority banking and investment proposition, tapping on new quality opportunities and digitizing various offerings continue to be among principal priorities for sustainable growth and healthy returns for shareholders. We are confident that the bank is well positioned to continue its growth journey in the coming years and emerge much stronger from the current market conditions.

 We are also pleased to announce that global rating agency, Moody’s re-affirmed its rating on NBF, dated 16 October 2016, at Baa1 / Prime-2 for deposits and A3 for counterparty risk assessment with a stable outlook, driven by the bank’s solid profitability, sound capital buffers, as well as stable funding and liquidity profile; a testament to the efforts made by the management of the bank during these challenging market conditions.”

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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