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National Bank of Fujairah PJSC (NBF) - Q3 2017 operating profit grows 11.9% reflecting continued focus on quality core business

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


  • NBF posted an operating profit of AED 228.7 million in the third quarter of 2017, a rise of 11.9% quarter-on-quarter, and an increase of 5.2% for the nine month period compared to 2016. This reflects a high level of resilience in the bank’s core business and enhanced balance sheet management in a rising interest rate environment. On the back of a strong Q3 2017 performance, NBF reported a net profit of AED 401.4 million for the nine month period ended 30 September 2017 up 2.7% over the corresponding period of 2016.
  • Net interest income and net income from Islamic financing and investment activities for the quarter grew by 11.5%, and 6.8% for the nine month period compared with 2016.
  • Operating income for the quarter experienced a growth of 8.6% and 4.0% for the nine month period compared to 2016. Income from investments and Islamic instruments doubled to AED 14.7 million compared to the corresponding period of 2016.
  • Loans and advances and Islamic financing receivables rose 3.6% from AED 22.8 billion at 2016 year end to AED 23.6 billion, and up by 8.0% from 30 September 2016. The growth compares well relative to the marginal decline in credit growth at the industry level, reported in August 2017 in the UAE Central Bank’s statistics report.
  • Customer deposits and Islamic customer deposits increased marginally by 0.6% from AED 25.9 billion at 2016 year end to AED 26.1 billion, and up by 12.9% from 30 September 2016.
  • Shareholders’ equity of AED 4.8 billion exceeded the 2016 year end level by 5.4%, an increase of 6.7% from 30 September 2016.
  • Strong capital adequacy and liquidity levels were maintained, well ahead of Central Bank’s minimum requirements. Capital adequacy ratio was 17.95%, lending to stable resources ratio stood at 87.8% and eligible liquid assets ratio (ELAR) remains as one of the highest at the industry level at 20.8%.
  • Operating expenses increased marginally by 1.6%, 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 34.2% compared to 34.9% 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 266.0 million compared to AED 243.2 million in the corresponding period of 2016. The NPL ratio was 5.57% compared to 4.95% as at 31 December 2016. Total provision coverage ratio was 95.2% compared to 101.3% as at 31 December 2016. Total provision coverage including collaterals improved to 106.6%.
  • Return on average assets was 1.5% (31 December 2016: 1.4%) and return on average equity was 11.4% (31 December 2016: 10.4%).
  • NBF’s long term FCR was re-affirmed at A- by Capital Intelligence, 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 continued to deliver strong operating results through its focus on being the financial partner for business, and meeting our customers’ personal and professional needs. NBF’s strong Q3 results are a reflection of the bank’s underlying resilience and proactive approach to an ever changing operating environment. Maintaining a prudent and conservative approach to risk management, efficient management of liquidity and pricing, particularly on high quality liquid assets, have contributed to improvement in performance.

We are pleased with the bank’s progress in its efforts to achieve recognition for its service excellence and the ongoing attention to building sustainable growth and healthy returns for its shareholders.

We continue to tap new business opportunities keeping in view the improving liquidity, robust business sentiment and resilience of the UAE economy, underpinned by significant non-oil activity, and look forward to further success in the months ahead.”

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 18 (of which 1 is an electronic banking service unit) across the UAE.

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