FUJAIRAH, 17th July, 2017 (WAM) -- National Bank of Fujairah, NBF, has announced its results for the six month period ended 30th June, 2017. It shows a net profit of AED154.9 million in the second quarter of 2017, Q2, a rise of 24.4 percent over the corresponding quarter of 2016.
On the back of a strong Q2 2017 performance, NBF reported a net profit of AED281.0 million for the half year ended 30th June, H1, up 2.2 percent over the corresponding period of 2016. Operating income for the quarter experienced a growth of 7.3 percent and for the half year a growth of 1.8 percent compared to the corresponding periods of 2016. Net interest income and net income from Islamic financing and investment activities grew by 4.4 percent and income from investments and Islamic instruments saw a growth of 113.0 percent compared to the corresponding period of 2016. Loans and advances and Islamic financing receivables rose 4.8 percent from AED 22.8 billion at 2016 year end to AED 23.9 billion, and up by 13.2 percent from 30th June 2016. Customer deposits and Islamic customer deposits declined by 2.5 percent from AED 25.9 billion at 2016 year end to AED 25.3 billion but went up by 11.8 percent from 30th June 2016. Shareholders’ equity of AED 4.7 billion exceeded the 2016 year end level by 3.4 percent, an increase of 6.6 percent from 30th June 2016. Strong capital adequacy and liquidity levels were maintained, well ahead of Central Bank’s minimum requirements. Capital adequacy ratio was 17.9 percent, lending to stable resources ratio stood at 90.3 percent and eligible liquid assets ratio (ELAR) remains as one of the highest at the industry level at 18.8 percent. ELAR industry average stood at 16.2 percent for the year-end, based on regulatory statistics. Operating expenses increased marginally by 1.3 percent, reflecting NBF’s disciplined cost management, prudent investments in our businesses, systems and infrastructure, including a set of digital initiatives to enhance our offerings and customer service. Cost-to-income ratio stood at 34.6 percent compared to 34.8 percent in the corresponding period of 2016. NBF continued with its prudent and transparent approach towards proactively recognising and providing for problem accounts. Net impairment charge was AED 157.6 million compared to AED 154.7 million in the corresponding period of 2016. The NPL ratio was 5.23 percent compared to 4.95 percent as at 31st December 2016. Total provision coverage ratio was 92.5 percent compared to 101.3 percent as at 31st December 2016. Total provision coverage including collaterals improved to 104.6 percent. Return on average assets was 1.6 percent (31st December 2016: 1.4 percent) and return on average equity was 12.1 percent (31st December 2016: 10.4 percent). NBF’s rating was re-affirmed at BBB+ / A-2 by Standard & Poor’s, with a stable outlook, highlighting the bank’s underlying strength, prudent risk management and resilience. Sir Easa Saleh Al Gurg, KCVO, CBE, Deputy Chairman, said, "NBF continues to make good progress in its principal areas of focus. The bank was honoured once again with more awards and endorsements this quarter underscoring NBF’s long-standing culture of service excellence, client partnership and being the employer of choice. We are particularly delighted as the bank was ranked 4th in the GCC and the highest in the UAE at Mediaquest’s Top CEO Awards. Also, NBF retained the Best Corporate Bank UAE and Best Commercial Bank UAE at the Banker Middle East Industry Awards together with the MENA HR Excellence Team of the Year awards. "NBF’s strong Q2 results are a reflection of the bank’s underlying resilience and proactive approach to a challenging operating environment. It is good to see our commitment to the long-term sustainability of both our business model and our customer relationships have served us well during this period. "Effective risk management, good governance and proactive business management are essential elements for ongoing success, and we remain committed to creating exceptional value for our customers and shareholders," he concluded.
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