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National Bank of Fujairah PJSC (NBF) - 2017 operating profit up 5.5% underpinned by stable business growth and robust balance sheet management

National Bank of Fujairah PJSC (NBF) is pleased to announce its results for the year ended 31 December 2017 in accordance with the approval received from the Central Bank of the United Arab Emirates (CBUAE).



  • NBF posted an operating profit of AED 913.6 million, a growth of 5.5% compared to AED 866.0 million in 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.
  • Operating income at AED 1.4 billion saw a growth of 4.5% compared to 2016. Income from investments and Islamic instruments increased to AED 19.3 million compared to AED 11.1 million in 2016, a growth of 73.6%.
  • Net interest income and net income from Islamic financing and investment activities for the year grew by 8.2% to AED 917.6 million compared to 2016.
  • Operating expenses increased by 2.6%, reflecting NBF’s disciplined cost management, prudent investments in our businesses, systems and infrastructure, including a set of digital initiatives to enhance our future offerings and customer service. Cost-to-income ratio stood at 33.7% compared to 34.4% in 2016.
  • NBF’s prudent loan loss provisioning policy resulted in net impairment losses of AED 441.7 million compared to AED 405.5 million in 2016. The NPL ratio was 5.53% compared to 4.95% as at 31 December 2016. Total provision coverage ratio stood at 89.5% compared to 101.3% as at 31 December 2016.
  • NBF strong operating profit enabled it to absorb elevated level of impairment losses and record a growth in net profit of 2.5%. NBF reported net profit of AED 471.9 million compared to AED 460.4 million in 2016.
  • Loans and advances and Islamic financing receivables rose 5.5% from AED 22.8 billion at 2016 year end to AED 24.1 billion.
  • Customer deposits and Islamic customer deposits increased by 7.4% from AED 25.9 billion at 2016 year end to AED 27.9 billion.
  • Investments and Islamic instruments were up 7.3% representing 5.2% of total assets.
  • Shareholders’ equity of AED 4.9 billion showed an increase of 6.8% from the 2016 year end.
  • Strong capital adequacy and lending to stable resources ratios were maintained at 17.5% (Tier 1 ratio of 15.1%) and 86.9% respectively, well ahead of Central Bank’s minimum requirements. The bank continues to maintain a high eligible liquid assets ratio at 24.1% and its Basel III net stable funding ratio stood at 107.1%, while its liquidity coverage ratio was 270.0%.
  • Return on average assets was 1.3% (31 December 2016: 1.4%) and return on average equity was 10.0% (31 December 2016: 10.4%).
  • Taking into account the 2017 performance, a distribution of profits of 15% (2016: 15%) has been recommended in the form of cash dividends of 7.5% (2016: 7.5%) and bonus shares of 7.5% (2016: 7.5%) of the paid-up capital.


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

 “NBF has delivered strong performance through its renewed focus on being the financial partner for business, and meeting its customers’ professional and personal needs. NBF’s customer centric business philosophy, successful track record of execution and adaptability to change enables it to achieve exceptional client satisfaction and generate exceptional shareholder value. The Board is encouraged by the continued development and success of the NBF franchise.

 We were honoured with our highest number of prestigious awards and endorsements through-out 2017, further underscoring NBF’s long outstanding culture of service excellence and client partnership.

On behalf of the Board, we would like to take this opportunity to thank both our clients and our shareholders for their continued support and our employees for their dedication and commitment over the years.”

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

NBF’s solid performance was achieved in the face of the ongoing challenges in the business environment, underlining its focus on true value creation, exceptional customer service and the development of an agile business model. Prudent risk management and corporate governance practices, strong capital adequacy, healthy liquidity and success in leveraging technology continue to enhance the Group’s ability to navigate through times of uncertainty and allow us to emerge stronger for future growth.”

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 across the UAE.


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