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National Bank of Fujairah PJSC (NBF) – H1 2018 net profit up 10.4% as a result of its resilient business strategy

Impressive growth underpinned by solid business fundamentals and focus on asset and liability management helped the bank to achieve record half year results

National Bank of Fujairah PJSC (NBF) is pleased to announce its results for the six month period ended 30 June 2018.


  • NBF posted a net profit of AED 164.8 million in the second quarter of 2018, a rise of 13.4% over the first quarter of 2018, which reflects a high level of resilience in its core business. On the back of a strong Q2 2018 performance, NBF reported a net profit of AED 310.2 million for the half year ended 30 June 2018 up 10.4% over the corresponding period of 2017.

  • Operating profit recorded a year-on-year growth of 18.5% reaching AED 519.9 million compared to AED 438.6 million in the corresponding period of 2017. Demonstrating its continued focus on quality core business growth and profitability, NBF’s operating profit for the three month period was AED 271.9 million compared with AED 226.6 million in 2017; a jump of 20.0%.

  • Operating income for the six month period at AED 768.7 million saw a growth of 14.6% compared to the corresponding period of 2017. This was achieved by enhanced balance sheet management in a rising interest rate environment, efficient management of liquidity and effective pricing strategies that helped in improving margins and return on capital.

  • Net interest income and net income from Islamic financing and investment activities for the six month period grew by 21.7% to AED 525.1 million compared to 2017.

  • Foreign exchange and derivatives income experienced an outstanding growth of 36.7% at AED 70.0 million for the six month period compared with AED 51.2 million in 2017.

  • Operating expenses increased by 7.2%, 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 32.4% compared to 34.6% in the corresponding period of 2017.

  • NBF’s prudent provisioning policy resulted in net impairment losses of AED 209.7 million for the six month period compared to AED 157.6 million in 2017. The NPL ratio improved to 5.29% from 5.53% as at 31 December 2017. Total provision coverage ratio (including credit risk reserve) improved to 99.2% from 89.5% as at 31 December 2017.

  • Loans and advances and Islamic financing receivables rose 8.2% from AED 24.1 billion at 2017 year end to AED 26.0 billion, and up by 8.9% from 30 June 2017. The growth compares well relative to the marginal increase in credit growth at the industry level, reported in April 2018 in the UAE Central Bank’s statistics report.

  • Customer deposits and Islamic customer deposits stood at AED 28.2 billion compared to AED 27.9 billion at 2017 year end, and up by 11.5% from 30 June 2017.

  • Shareholders’ equity stood at AED 4.87 billion compared to AED 4.89 billion at 2017 year end, and up by 2.9% from 30 June 2017.

  • Strong capital adequacy and lending to stable resources ratios were maintained at 16.8% (Tier 1 ratio of 14.4%) and 90.4% respectively, well ahead of Central Bank’s minimum requirements. Further, eligible liquid assets ratio (ELAR) remains strong at 18.8%.

  • Return on average assets was 1.7%, up from 1.6% for the corresponding period in 2017; and return on average equity was 12.7%, up from 12.1% for the corresponding period in 2017.

  • NBF’s rating was re-affirmed at 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, highlighting the bank’s underlying strength, prudent risk management and resilience.

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

“It gives us immense pleasure to see NBF maintain its growth trajectory through an unwavering focus on its core businesses, service capabilities and constant innovation to meet the changing needs of customers. Re-iterating that the financial performance has been a vast improvement to that seen at the end of December 2017, we are confident that the bank will overcome any further short-term challenges and perform commendably throughout the course of the year.

The bank was honoured once again with awards and endorsements this quarter underscoring NBF’s long-standing culture of service excellence and client partnership; including winning the “Best Corporate Bank UAE” and “Best Commercial Bank UAE” awards at the 2018 Banker Middle East Industry Awards. This marks the seventh year that NBF has retained the best commercial bank, and the fourth time in a row it has received the accolade for the best corporate bank. NBF’s progressive human resources practices are increasingly being recognised externally and are now benchmarked with global high performing organisations. In 2018, noteworthy recognitions were in the form of Winner of HR Team of the Year, Best Nationalization Program and Best Employee Experience at the Gulf Employee Experience Awards 2018.

NBF’s impressive financial results, healthy liquidity, strong capital adequacy and prudent business strategy shape a strong foundation for growth for the rest of the year and beyond. Being the financial partner for business, focused on our customers’ personal and professional needs, our prospects are inextricably linked to the UAE and we remain committed to exploring opportunities that 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 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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