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NBF achieved record Nine Months profit of AED 462.1 million, up 15.1% exhibiting robust quality business growth

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


  • NBF posted an operating profit of AED 284.5 million in the third quarter of 2018, a rise of 24.4% quarter-on-quarter, and an increase of 20.5% for the nine month period at AED 804.4 million compared to 2017. 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 solid Q3 2018 operating performance, NBF reported a net profit of AED 462.1 million for the nine month period ended 30 September 2018 up 15.1% over the corresponding period of 2017.

  • Operating income for the nine month period at AED 1.2 billion saw a growth of 16.6% compared to the corresponding period of 2017. This was achieved by strong core business growth, efficient management of liquidity, margins improvement and enhanced focus on return on capital.

  • Net interest income and net income from Islamic financing and investment activities for the nine month period grew by 20.7% to AED 812.6 million compared to 2017.

  • Foreign exchange and derivatives income experienced an exceptional growth of 45.3% at AED 103.1 million for the nine month period compared with AED 71.0 million in 2017.

  • Operating expenses increased by 8.9%, reflecting NBF’s disciplined cost management, prudent investments in our businesses, systems and infrastructure, including a set of digitalisation initiatives to enhance our future offerings and customer service. Cost-to-income ratio improved to 31.9% compared to 34.2% in the corresponding period of 2017, providing headroom to continue investing for growth and technological capabilities.

  • NBF secured prudent net impairment provisions of AED 342.3 million for the nine month period compared to AED 266.0 million in 2017, as the bank has used the improved operating performance to increase its overall coverage levels for troubled accounts. Total provision coverage ratio (including credit risk reserve) improved to 97.9% from 89.5% as at 31 December 2017. The coverage ratio improves to 120.2% after taking benefit of eligible collaterals. The NPL ratio stood at 5.52% compared to 5.53% as at 31 December 2017.

  • Loans and advances and Islamic financing receivables rose 10.6% from AED 24.1 billion at 2017 year end to AED 26.6 billion, and up by 12.6% from 30 September 2017.

  • Customer deposits and Islamic customer deposits stood at AED 29.2 billion compared to AED 27.9 billion at 2017 year end, and up by 11.9% from 30 September 2017.

  • Shareholders’ equity stood at AED 5.0 billion compared to AED 4.89 billion at 2017 year end, and up by 3.4% from 30 September 2017.

  • Strong capital adequacy and lending to stable resources ratios were maintained at 16.6% (Tier 1 ratio of 14.3%) and 90.8% respectively, well ahead of Central Bank’s minimum requirements. Further, eligible liquid assets ratio (ELAR) remains strong at 19.0%.

  • Return on average assets improved to 1.6% from 1.5% for the corresponding period in 2017; and return on average equity was 12.5%, up from 11.4% for the corresponding period in 2017.

  • Following the approval of Annual General Assembly Meeting and Regulatory Authorities, NBF has successfully completed its conversion of tier 1 capital notes of AED 500 million into ordinary paid-up share capital which has augmented its common equity tier 1 ratio (CET 1) from 11.9% as at 31 December 2017 to 12.9%.

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

“We are extremely pleased with the record set of results delivered by NBF. NBF’s best result to date for the period is underpinned by higher operating income and improving margins coupled with healthy liquidity and strong capital adequacy.

These results are testament to NBF’s resilient business and proactive approach to an ever changing operating environment. Overall income levels continue their upward trajectory and the franchise remains committed to exceptional customer service.

The Board believes in ongoing investment in the brand to support future growth and preserving strong capital ratios. The conversion of tier 1 capital notes into ordinary paid-up share capital has enhanced the CET 1 ratio which further strengthens NBF’s position to support its growth strategy. We will continue to tap new business opportunities keeping in view the UAE’s growth forecast and significant non-oil activity for further success in the months ahead and play our role in the development of the UAE economy.”

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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