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National Bank of Fujairah PJSC (NBF) – NBF delivered strong nine months profit of AED 511.6 million, up 10.7% demonstrating good business momentum

NBF is pleased to announce a robust set of results for the nine month period ended 30 September 2019.


  • NBF posted its best ever nine months net profit of AED 511.6 million for the period ended 30 September 2019, a rise of 10.7% over the corresponding period of 2018, reflecting its focus on quality growth in a challenging operating environment.
  • Supported by higher fee income and exchange and derivatives income, NBF also achieved strong operating profit of AED 862.3 million which increased by 7.2% compared to AED 804.4 million in the corresponding period of 2018. Operating profit of AED 295.3 million was posted in the third quarter of 2019, a rise of 4.7% over the previous quarter, and an increase of 3.8% for the same three months in 2018.
  • Operating income for the nine month period at AED 1.28 billion saw a growth of 8.4% compared to the corresponding period of 2018. This was driven by a high level of resilience in the bank’s core business with good volume growth, enhanced balance sheet management and effective pricing strategies. Net interest income and net income from Islamic financing and investment activities grew by 5.8% and net fees, commission and other income by 14.7% compared to the corresponding period of 2018. Income from investments and Islamic instruments marked a significant bounce back; fair value gain on fair value through profit or loss (FVTPL) and fair value through other comprehensive income (FVOCI) investment portfolio also improved by AED 60.7 million during the nine month period ended 30 September 2019.
  • Foreign exchange and derivatives income experienced a growth of 9.1% reaching AED 112.5 million for the nine month period compared to AED 103.1 million in 2018.
  • Operating expenses increased by 11.0% for the nine month period ended 30 September 2019 compared to the corresponding period of 2018, reflecting NBF’s investments in multiple digital initiatives and infrastructure to improve customer service and competitiveness in line with changing market demands. Cost-to-income ratio stood at 32.7% compared to 31.9% in the corresponding period of 2018 and 33.2% for the year ended 31 December 2018.
  • NBF secured net impairment provisions of AED 350.7 million for the nine month period compared to AED 342.3 million in 2018, as the bank has used the improved operating performance to increase its overall coverage levels in view of the continued slow-down and credit stress in the market. Total provision coverage ratio (including impairment reserves) improved to 107.8% from 102.0% as at 31 December 2018. The NPL ratio remained stable at 5.1% at the December 2018 position.
  • Loans and advances and Islamic financing receivables rose 5.2% from AED 26.2 billion at 2018 year end to AED 27.6 billion, and up by 3.6% from 30 September 2018.
  • Customer deposits and Islamic customer deposits depicted a growth of 2.4% at AED 31.2 billion compared to AED 30.5 billion at 2018 year end, up by 6.8% from 30 September 2018.
  • Assets reached AED 42.5 billion; a rise of 6.9% from AED 39.8 billion at 2018 year-end, up by 9.2% from 30 September 2018.
  • Shareholders’ equity rose 7.9% from AED 5.1 billion at 2018 year-end to AED 5.5 billion, up by 10.7% from 30 September 2018.
  • Strong capital adequacy and lending to stable resources ratios were maintained at 16.3% (Tier 1 ratio of 15.2% and CET 1 ratio of 13.8%) and 89.3% respectively, well ahead of CBUAE minimum requirements. Further, eligible liquid assets ratio (ELAR) and advances to deposits ratio remained strong at 20.1% and 88.3% respectively.
  • Return on average assets was 1.66%, up from 1.63% for the corresponding period in 2018.
  • Return on average equity was 12.81%, up from 12.47% for the corresponding period in 2018.
  • In October 2019, NBF successfully completed its inaugural public issuance of Additional Tier 1 (AT1) capital securities of US$ 350 million (AED 1.3 billion) which was very well received by the investors and resulted in an order book in excess of US$ 1.5 billion (AED 5.5 billion). The purpose of the AT1 issuance is to strengthen and optimize NBF’s capital base and to diversify the bank’s capital and investor base. NBF has also completed the early buy-back of existing privately placed AT1 capital notes of AED 500 million in October 2019. Following these capital changes, NBF’s capital adequacy ratio will be in the range of 18 – 19% and Tier 1 ratio in the range of 17 – 18%.

NBF achieved an exceptional performance winning the following eight trophies at this year’s Banker Middle East Awards:

  • Best Customer Service – Corporate / Investment Banking UAE
  • Best Treasury Management
  • Best SME Internet Banking Service
  • Best SME Loan
  • Best SME Trade Finance
  • Best Ladies Proposition – NBF Elham
  • Best Premium Banking Services – NBF Priority
  • Best Mobile Banking Service UAE - Retail


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

“We are extremely pleased with this strong set of results, particularly in an economic environment where uncertainties are weighing on market sentiments. With slow global growth, volatile geopolitical conditions and a declining interest rate environment, NBF’s resilient performance reinforces its ability to navigate through the changing operating environment with a resolute business focus coupled with healthy liquidity and strong capital adequacy.


  • The Board believes in ongoing investment in the Group to support future growth and preserving strong capital ratios. The inaugural public issuance of AT1 capital has enhanced capital adequacy, further strengthening NBF’s position to support its growth strategy and face the current market environment with confidence.
  • We were also honoured with a number of afore-mentioned prestigious industry and product awards, highlighting the enduring quality of our customer focus.


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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