National Bank of Fujairah’s 9-month net profit up 29%

Dubai: National Bank of Fujairah’s (NBF) net profit for the first nine months of this year grew 28.9 per cent to Dh369.2 million compared to Dh286.4 million in the corresponding period of 2013.

The bank’s operating profit was up 15.6 per cent Dh465.4 million in the same period.

For the third quarter of the year, the bank reported a net profit of Dh129.75 million, up 26 per cent compared to Dh102.89 million in the third quarter of last year.

NBF’s net interest income for the first three quarters grew by 16.7 per cent and operating income grew by 17.3 per cent compared to the corresponding period of 2013. Operating expenses increased by 20.3 per cent reflecting ongoing investment in enhancing the bank’s business and service platforms. Cost-to-income ratio stood at 37.1 per cent compared to 36.2 per cent in the corresponding period of 2013.

“The bank is progressing smoothly on its growth path. The bank’s strategic initiatives, such as the recently introduced Islamic banking proposition, have started to bear fruit, and with customers’ continued support, our ongoing growth is assured,” said Easa Saleh Al Gurg, Deputy Chairman of NBF.

The bank reported healthy asset growth in the first nine months of the year with loans and advances expanding by 14.8 per cent to Dh15.9 billion from Dh13.8 billion at the year-end 2013. On the liability side, NBF’s customer deposits surged 9.8 per cent to Dh16.5 billion from Dh15 billion at 2013 year end.

The bank reported significant improvement in its asset quality with net impairment losses at Dh96.1 million, down by 17.3 per cent compared to Dh116.2 million in the corresponding period of 2013. The NPL ratio stood at 4.7 per cent at the close of the third quarter compared to 6.1 per cent at 30 September 2013. Total provision coverage was 118.5 per cent compared to 97 per cent in the same period.

The continued to maintain strong capital adequacy of 16.01 per cent and tier 1 ratio of 13.02 per net with lending to stable resources ratio at 89.1 per cent.

Return on average assets improved to 2.2 per cent from 2.1 per cent for the corresponding period in 2013. Return on average equity improved to 15.7 per cent from 14.7 per cent in the same period.