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National Bank of Fujairah (NBF) – Q2 2017 net profit bounces back 24.4% as a result of its resilient and adaptive business model

Solid core business and robust asset and liability management continue to underpin strong performance by the bank

National Bank of Fujairah PJSC (NBF) is pleased to announce its results for the six month period ended 30 June 2017.


  • NBF posted a net profit of AED 154.9 million in the second quarter of 2017, a rise of 24.4% over the corresponding quarter of 2016, which reflects an improvement in the impairment provisions during the current quarter and a high level of resilience in its core business. On the back of a strong Q2 2017 performance, NBF reported a net profit of AED 281.0 million for the half year ended 30 June 2017 up 2.2% over the corresponding period of 2016.
  • Operating income for the quarter experienced a growth of 7.3% and for the half year a growth of 1.8% compared to the corresponding periods of 2016. Net interest income and net income from Islamic financing and investment activities grew by 4.4% and income from investments and Islamic instruments saw a growth of 113.0% compared to the corresponding period of 2016.
  • Loans and advances and Islamic financing receivables rose 4.8% from AED 22.8 billion at 2016 year end to AED 23.9 billion, and up by 13.2% from 30 June 2016.
  • Customer deposits and Islamic customer deposits declined by 2.5% from AED 25.9 billion at 2016 year end to AED 25.3 billion but went up by 11.8% from 30 June 2016.
  • Shareholders’ equity of AED 4.7 billion exceeded the 2016 year end level by 3.4%, an increase of 6.6% from 30 June 2016.
  • Strong capital adequacy and liquidity levels were maintained, well ahead of Central Bank’s minimum requirements. Capital adequacy ratio was 17.9%, lending to stable resources ratio stood at 90.3% and eligible liquid assets ratio (ELAR) remains as one of the highest at the industry level at 18.8%. ELAR industry average stood at 16.2% for the year-end, based on regulatory statistics.
  • Operating expenses increased marginally by 1.3%, reflecting NBF’s disciplined cost management, prudent investments in our businesses, systems and infrastructure, including a set of digital initiatives to enhance our offerings and customer service. Cost-to-income ratio stood at 34.6% compared to 34.8% in the corresponding period of 2016.
  • NBF continued with its prudent and transparent approach towards proactively recognising and providing for problem accounts. Net impairment charge was AED 157.6 million compared to AED 154.7 million in the corresponding period of 2016. The NPL ratio was 5.23% compared to 4.95% as at 31 December 2016. Total provision coverage ratio was 92.5% compared to 101.3% as at 31 December 2016. Total provision coverage including collaterals improved to 104.6%.
  • Return on average assets was 1.6% (31 December 2016: 1.4%) and return on average equity was 12.1% (31 December 2016: 10.4%).
  • NBF’s rating was re-affirmed at BBB+ / A-2 by Standard & Poor’s, with a stable outlook, highlighting the bank’s underlying strength, prudent risk management and resilience.

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

“NBF continues to make good progress in its principal areas of focus. The bank was honored once again with more awards and endorsements this quarter underscoring NBF’s long-standing culture of service excellence, client partnership and being the employer of choice. We are particularly delighted as the bank was ranked 4th in the GCC and the highest in the UAE at Mediaquest’s Top CEO Awards. Also, NBF retained the Best Corporate Bank UAE and Best Commercial Bank UAE at the Banker Middle East Industry Awards together with the MENA HR Excellence Team of the Year awards.

NBF’s strong Q2 results are a reflection of the bank’s underlying resilience and proactive approach to a challenging operating environment. It is good to see our commitment to the long-term sustainability of both our business model and our customer relationships have served us well during this period.Effective risk management, good governance and proactive business management are essential elements for ongoing success, and we remain committed to creating 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 Shari’a 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 16 across the UAE.

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