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National Bank of Fujairah PJSC (NBF) Reports Nine Months 2020 Results

NBF posted operating income of AED 1.1 billion and net profit of AED 66.3 million, continuing to build substantial impairment provisions on account of the challenges associated with the persistence of COVID-19

Robust capital adequacy and liquidity levels coupled with effective cost management position the bank well for a strong recovery as conditions improve


NBF announces its results today for the nine month period ended 30 September 2020.



  • Operating income stood at AED 1.1 billion down 17.1% compared to AED 1.3 billion in the corresponding period of 2019 reflecting the difficult operating environment. Declining interest rates, sluggish economic activity and contraction in the loan book impacted the operating performance mitigated by management focus on protecting the core business, adapting its investment strategy and achieving operating efficiencies on the back of its digitalization efforts. Net interest income and net income from Islamic financing and investment activities and net fees, commission and other income stood at AED 722.1 million and AED 222.3 million respectively compared to AED 859.4 million and AED 300.7 million in the corresponding period of 2019. Foreign exchange and derivatives income reached AED 99.1 million compared to AED 112.5 million in the corresponding period of 2019. Income from investments and Islamic instruments marked a significant bounce back from the corresponding period of 2019 to AED 18.6 million during the nine month period ended 30 September 2020. Unrealised gain on fair value through other comprehensive income (FVOCI) investments stood at AED 49.6 million.

  • Operating expenses reduced by 15.3% to AED 354.8 million compared to AED 418.6 million in the corresponding period of 2019, reflecting the measures adopted in line with the changing market demands and the significant move towards the use of digital solutions to maintain the bank’s exceptional customer service. The cost-to-income ratio stood at 33.4% compared to 32.7% in the corresponding period of 2019 reflecting the lower operating income.

  • NBF achieved an operating profit of AED 707.3 million for the nine month period ended 30 September 2020 compared to AED 862.3 million in the corresponding period of 2019.

  • NBF maintained its policy of prudent and transparent recognition of problem accounts and has also taken the opportunity to enhance net impairment losses in response to the potential impact of COVID-19 and the current market conditions. NBF secured net impairment provisions of AED 641.0 million for the nine month period compared to AED 350.7 million in 2019. During the nine month period ended 30 September 2020, the bank’s impairment reserve reduced by AED 13.3 million to AED 349.8 million from AED 363.1 million at 2019 year-end. Total provision coverage ratio (including impairment reserves) stood at 81.4% compared to 107.3% as at 31 December 2019. The NPL ratio stood at 8.5% compared to 7.5% as at 30 June 2020; 6.7% as at 31 March 2020 and 5.4% as at 31 December 2019 evidencing both the expected deterioration in credit quality and a reduction in the loan book.

  • NBF posted a net profit of AED 66.3 million for the nine month period ended 30 September 2020, down 87.0% compared to AED 511.6 million in the corresponding period of 2019 after absorbing the substantial increase in provisions. While, NBF’s other comprehensive income increased by AED 18.2 million and AED 18.5 million for the nine and three months period ended 30 September 2020 respectively on the back of improvement in investments designated as fair value through other comprehensive income (FVOCI).

  • Loans and advances and Islamic financing receivables stood at AED 25.4 billion compared to AED 27.1 billion at 2019 year-end and AED 27.6 billion as at 30 September 2019. High quality liquid assets stood at AED 7.2 billion compared to AED 7.9 billion at 2019 year-end and AED 7.4 billion as at 30 September 2019. This reflects on-going prudent balance sheet and liquidity management actions.

  • Customer deposits and Islamic customer deposits stood at 30 September 2019 level of AED 31.2 billion compared to AED 31.9 billion at 2019 year-end. Current and Saving Accounts (CASA) deposits increased by AED 372.0 million from 2019 year-end, a 3.8% increase to AED 10.0 billion as at 30 September 2020. CASA deposits improved to 32.2% of total customer deposits compared to 30.3% as at 31 December 2019.

  • Total assets reached AED 41.8 billion (AED 42.8 billion at 2019 year-end).

  • Shareholders’ equity stood at AED 6.2 billion compared to AED 6.4 billion at 2019 year-end, up by 12.4% from 30 September 2019. The capital adequacy ratio remains very strong and stood at 19.1% (Tier 1 ratio of 18.0% and CET 1 ratio of 14.0%) compared to 17.8% (Tier 1 ratio of 16.6% and CET 1 ratio of 12.9%) at 2019 year-end, significantly ahead of regulatory requirements.

  • Ample liquidity was maintained with lending to stable resources ratios at 80.6% (2019: 85.9%) and eligible liquid assets ratio (ELAR) at 20.4% (2019: 21.7%), well ahead of all CBUAE minimum requirements.

  • Return on average assets was 0.2% compared to 1.7% for the corresponding period in 2019.

  • Return on average equity was 1.4% compared to 12.8% for the corresponding period in 2019.


Dr Raja Al Gurg, Deputy Chairman said:

“All the way through the exceptionally challenging 2020 with all the volatility and uncertainty that the COVID-19 pandemic has brought and the on-going geopolitical tensions, rising cost of risk and continued headwinds of lower oil prices and interest rates, NBF has maintained its resolute focus on the execution of its strategic priorities of delivering exceptional customer service, spearheading digital innovation, maintaining financial stability, continuing to meet compliance and regulatory standards and supporting communities.

NBF continues to invest in digitization and digitally enabled services to proactively manage business and differentiate its operating platform for future growth. The Group also successfully upgraded various systems including its core banking system regardless of the lock down and work from home arrangements, with no break in service availability, demonstrating the competence and commitment of our people and serving to prove the resilience of the brand.

The Board is confident that the fundamental strength of our franchise remains intact despite the immediate challenges to profitability. Our strong capital and liquidity position enables us to proactively deal with the situation and will allow us to emerge stronger than ever. We appreciate the UAE government’s timely support measures aimed at the protection, safety and sustenance of the country’s people and institutions and likewise are proud of NBF’s efforts to support our impacted customers through appropriate relief measures whilst taking care of the well-being and security of our staff members.”





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 negative outlook, the bank is listed on the Abu Dhabi Securities Exchange under the symbol “NBF”. It has a branch network of 15 (of which 1 is an electronic banking service unit) across the UAE.


For further information, please contact: 

Strategic Marketing and Communications Department


Telephone: +971 4 507 8351 and +971 4 507 8576

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