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National Bank of Fujairah PJSC (NBF) – Q1 2020 Results NBF recorded an operating profit growth of 3.7% quarter-on-quarter and 2.9% year-on-year reaching AED 293.3 million enabling the bank to secure prudent impairment provisions in the face of the unprecedented operating environment

NBF’s robust liquidity and capital position and focused asset and liability management positions its well to navigate the uncertain environment with confidence

NBF is pleased to announce its results for the three month period ended 31 March 2020.




  • Operating income at AED 417.5 million showed marginal growth of 0.5% compared to the corresponding period of 2019. This was driven by a high level of resilience in the bank’s core business and enhanced balance sheet management seeking to mitigate the impacts of the current volatile markets. Net interest income and net income from Islamic financing and investment activities and net fees, commission and other income stood at AED 276.3 million and AED 89.3 million respectively compared to AED 280.4 million and AED 90.5 million in the corresponding period of 2019. Foreign exchange and derivatives income reached AED 37.0 million compared to AED 39.9 million in the corresponding period of 2019. Income from investments and Islamic instruments was AED 14.9 million compared to AED 4.6 million in the corresponding period of 2019.

  • Operating expenses reduced by 4.7% to AED 124.2 million compared to AED 130.4 million in the corresponding period of 2019, reflecting the measures adopted in line with the changing market demands with the prime focus on exceptional customer service through the use of digital solutions. The cost-to-income ratio improved to 29.8% from 31.4% in the corresponding period of 2019.

  • NBF achieved an operating profit of AED 293.3 million for the three month period with a growth of 2.9% compared to AED 285.1 million in the corresponding period of 2019 and 3.7% growth over Q4 2019. 

  • The operating performance supported NBF’s prudent loan loss provisioning policy in response to the current market conditions. The bank has taken the opportunity to recognize stage 3 impairment provisions towards an exceptional group exposure and enhanced stage 1 and 2 provisions for the potential impact of COVID-19. NBF secured net impairment provisions of AED 217.9 million for the three month period compared to AED 117.5 million in 2019. Total provision coverage ratio (including impairment reserves) stood at 96.3% compared to 107.3% as at 31 December 2019. The NPL ratio stood at 6.7% compared to 5.4% as at 31 December 2019.

  • NBF posted a net profit of AED 75.4 million for the three month period ended 31 March 2020, up 85.9% compared to Q4 2019 and down 55.0% compared to AED 167.6 million in the corresponding period of 2019, despite the continuing subdued business activity in the market exacerbated by the COVID-19 outbreak.

  • Loans and advances and Islamic financing receivables reached AED 27.2 billion from AED 27.1 billion at 2019 year-end, up by 3.7% from 31 March 2019. 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 32.0 billion compared to AED 31.9 billion at 2019 year end, up by 6.0% from 31 March 2019.

  • Total assets rose by 1.1% to reach AED 43.3 billion from AED 42.8 billion at 2019 year-end, up by 8.1% from 31 March 2019.

  • Shareholders’ equity stood at AED 6.2 billion compared to AED 6.4 billion at 2019 year end, up by 19.2% from 31 March 2019. The capital adequacy significantly stood at 17.3% (Tier 1 ratio of 16.2% and CET 1 ratio of 12.6%) compared to 17.8% (Tier 1 ratio of 16.6% and CET 1 ratio of 12.9%) at 2019 year-end.

  • Strong liquidity was maintained with lending to stable resources ratios at 84.9% (2019: 85.9%) and eligible liquid assets ratio (ELAR) at 18.9% (2019: 21.7%), well ahead of all CBUAE minimum requirements.

  • Return on average assets was 0.7% compared to 1.7% for the corresponding period in 2019.

  • Return on average equity was 4.8% compared to 13.0% for the corresponding period in 2019.


Dr Raja Al Gurg, Deputy Chairman said:

“Q1 2020 saw an unprecedented change to the world economy with recessionary trends building rapidly across the globe, oil prices reaching exceptionally low levels and massive government support programmes being rolled out, as global economies remain on lock-down due to the COVID-19 pandemic. Despite this backdrop, NBF achieved positive operating profit growth of 2.9% reaching AED 293.3 million underscoring the resilience of its business model and proactive asset and liability management.

NBF’s business strategy takes into consideration the challenging operating environment and is being prudently managed with a focus on long term sustainability. The bank has built solid levels of liquidity and capital adequacy which coupled with its operating performance places NBF in a very strong position to weather the current uncertainties.

The bank has taken a number of measures during these times to ensure the ongoing health and safety of its staff and customers. NBF’s success in leveraging technology continues to enhance the Group’s responsiveness and adaptability to complement its growth strategy, especially during these times where access to digital and online channels is key to delivering value. In line with the UAE government measures and Central Bank’s Targeted Economic Support Scheme (TESS) to minimize the impact of COVID-19 to businesses and individuals, NBF has been assisting and providing relief to its eligible customers.

The Board is confident that NBF will navigate through these difficult times by continuing to operate and engage with its stakeholders transparently and in a supportive and prudent manner protecting their interest and achieving long-term sustainable results.”




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 with a stable outlook and BBB+ / A-2 by Standard & Poor’s with a negative outlook, the bank is listed on the Abu Dhabi Securities Exchange under the symbol “NBF”. It has a branch network of 19 (of which 2 are electronic banking service units) across the UAE.

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