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National Bank of Fujairah PJSC (NBF) Q1 2019 net profit jumps 15% reaching AED 167.6 million

Underpinned by robust quality business growth and margin improvement, NBF’soperating profit rose 15% to reach AED 285.1 million

NBF is pleased to announce its results for the three month period ended 31 March 2019.


  • NBF recorded year-on-year growth of 15.3% to close the three month period at a net profit of AED 167.6 million compared to AED 145.4 million in the corresponding period of 2018. This exhibits the bank’s focus on exceptional customer service, improved level of resilience and proactive asset and liability management.

  • Operating profit was AED 285.1 million for the three month period compared with AED 248.0 million in 2018; a rise of 15% demonstrating its continued focus on quality core business growth and profitability.

  • Operating income at AED 415.5 million saw a growth of 12.5% compared to the corresponding period of 2018. Net interest income and net income from Islamic financing and investment activities experienced a growth of 14.7% and income from investments and Islamic instruments marked a significant bounce back compared to the corresponding period of 2018.

  • Foreign exchange and derivatives income experienced a growth of 10% reaching AED 40 million for the three month period compared with AED 36.3 million in 2018.

  • Operating expenses increased by 7.6%, reflecting NBF’s disciplined cost management alongside new investments in our businesses, systems and infrastructure. These investments include a set of digitalisation initiatives to enhance our future offerings and customer service. Cost-to-income ratio improved to 31.4% compared to 32.8% in the corresponding period of 2018, showing the productivity improvements made to date and providing good headroom to continue investing in our technological capabilities.

  • NBF recorded net impairment provisions of AED 117.5 million for the three month period compared to AED 102.6 million in 2018. Total provision coverage ratio (including impairment reserves) stood at 101.6% compared to 102.0% as at 31 December 2018. The NPL ratio was 5.17% compared to 5.13% as at 31 December 2018.

  • Loans and advances and Islamic financing receivables were sustained at the year-end 2018 level of AED 26.2 billion, up by 4% from 31 March 2018. This reflects our prudent balance sheet and credit risk management in the face of low economic activity in the market.

  • Customer deposits and Islamic customer deposits stood at AED 30.2 billion compared to AED 30.5 billion at 2018 year end, up by 8.7% from 31 March 2018.

  • Assets touched AED 40.0 billion; a rise of 0.7% from AED 39.8 billion at 2018 year-end, up by 9.4% from 31 March 2018.

  • Shareholders’ equity rose 1.1% from AED 5.1 billion at 2018 year-end to AED 5.2 billion, up by 10.0% from 31 March 2018.

  • Strong capital adequacy and lending to stable resources ratios were maintained at 15.9% (Tier 1 ratio of 14.7% and CET 1 ratio of 13.3%) and 87.1% respectively, well ahead of CBUAE minimum requirements. Further, eligible liquid assets ratio (ELAR) remains strong at 19.8%.

  • Return on average assets was 1.7%, up from 1.6% for the corresponding period in 2018.

  • Return on average equity was 13.0%, up from 12.1% for the corresponding period in 2018. 

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

“We are pleased to see a solid start to 2019 with a good set of results for the first quarter. The bank continues to be honored with prestigious awards and endorsements, underscoring NBF’s long-standing culture of service excellence and client partnership. We are particularly delighted that the bank swept multiple accolades at the Gulf Customer Experience Awards 2018 - Employee Engagement & Happiness, Employee Insights & HR Metrics and the Overall Experience Award. NBF also received the ‘Most Improved Branches Award’ by Ethos Integrated Solutions based on their analysis of 2018 Customer Experience Benchmarking Index (CEBI). NBF was also awarded at the Emirati Women's Conference organised by The Emirates Intellectual Property Society, for our commitment to empowering and supporting the success journeys of Emirati businesswomen through our Elham business segment, as the first bank in the UAE to dedicate such a focused partnership with Emirati women.

The Group’s resilience and the stable outlook for its rating from Standard & Poor’s and Moody’s is a reflection of its unwavering focus on effective risk management, sound corporate governance practices and high quality and sustainable results. NBF’s success in leveraging technology continues to enhance the Group’s responsiveness and adaptability to complement its growth strategy.

With this encouraging start to 2019, I am confident that the Group will continue to perform admirably throughout the course of the year tapping new business opportunities, including leveraging the new opportunities offered by digitalisation and demonstrably performing 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 (of which 1 is an electronic banking service unit) across the UAE.

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