Dubai: National Bank of Fujairah (NBF) on Wednesday reported Dh505.4 million net profit for 2014, up 28.6 per cent compared to Dh393.1 million in 2013.

NBF’s operating profit for 2014 was up 13.8 per cent at Dh637.8 million compared to Dh560.7 million in 2013.

“The past year has seen us successfully adapting our business and operating platforms to better serve clients, deliver long term growth for the bank and enhance shareholder returns,” said Shaikh Saleh Bin Mohammad Bin Hamad Al Sharqi, Chairman of NBF.

The bank’s operating income grew by 15.9 per cent and net interest income experienced a growth of 17 per cent compared to 2013, reflecting robust asset and liability management.

Operating expenses increased by 19.6 per cent to Dh387.4 million as a result of the bank’s efforts to develop new business streams and enhance operating platforms. Cost to income ratio, while increasing from 36.6 per cent to 37.8 per cent, is expected to normalise when the bank reaps further benefits from such investments in the years ahead.

NBF’s loans and advances were up 17.8 per cent to Dh16.3 billion in 2014 compared to Dh13.9 billion in 2013. On the liability side, customer deposits surged 19.6 per cent to Dh17.9 billion last year from Dh15 billion in 2013.

Return on average assets

Net impairment losses declined 21 per cent to Dh132.4 million in 2014 compared to Dh167.6 million in 2013. The NPL ratio improved to 4.4 per cent from 4.7 in the previous year. At the close of 2014, the bank’s total provision coverage improved to 121.4 per cent from 118.4 per cent at the year end 2013.

Last year the bank improved its return on average assets to 2.2 per cent compared to 2 per cent in the previous year, while return on average equity improved to 15.8 per cent compared to 14.8 per cent in 2013.

At the close of the year 2014, NBF maintained a strong capital adequacy ratio of 17.6 per cent and a lending to stable resources ratio of 87 per cent. The board has recommended a dividend of 15 per cent of the paid-up capital.

“As the UAE navigates its way to further success in the new year, we look forward to building on our distinctive competitive position and tremendous progress to better support the aspirations of the country as well as our customers,” said Easa Saleh Al Gurg, Deputy Chairman of NBF.