Dubai:National Bank of Fujairah (NBF) on Monday reported a net profit of Dh239.5 million for the first half of 2014, up 30.5 per cent compared to Dh183.5 million in the corresponding period of 2013.
The bank’s operating profit was up 17.8 per cent Dh304.6 million compared to Dh260.3 million in the first half of 2013. Net interest income grew by 20.2 per cent in the same period.
For the second quarter of the year, the bank reported Dh124.2 million net profits up 33.8 per cent compared to Dh92.8 million in the same period last year. Operating profit for the second quarter of 2014 was up 15.3 per cent Dh153.14 million compared to Dh132.78 million in the same quarter last year.
In the first half of this year, net impairment losses declined 15.2 per cent to Dh65.1 million in the first half of 2014 compared to Dh76.8 million in the same period last year. The non-performing loans (NPL) ratio stood at 4.7 per cent at the close of the first half of this year compared to 6.7 per cent at 30 June 2013 with the total provision coverage improving to 118.5 per cent compared to 91.1 per cent at the close of the first half of 2013.
During the first six months of this year NBF’s operating expenses increased by 19.1 per cent; reflecting ongoing investment in enhancing NBF’s business and service platforms. Cost-to-income ratio stood at 36.8 per cent compared to 36.4 per cent in the corresponding period of 2013.
The bank’s total assets were up 9.4 per cent at Dh23.5 billion at the close of the first half of this year from Dh21.5 billion at 2013 year end, and up by 27.8 per cent from 30 June 2013. Loans and advances during the first half of the year grew 7 per cent to Dh15.3 billion from Dh14.3 billion at 2013 year end.
Customer deposits were up 10.9 per cent to Dh16.6 billion compared to Dh15 billion at 2013 year end, and up by 33.8 per cent from 30 June 2013.
While the bank maintained capital adequacy ratio of 16.9 per cent and tier 1 ratio of 13.8 per cent in the first half of 2014, advances-to-deposits ratio was at 80.5 per cent at June 30, 2014.
“NBF’s solid set of financial results, healthy liquidity, strong capital adequacy and prudent business strategy continue to form the foundation of its future growth. We remain focused on supporting the development of the UAE economy and enhancing the bank’s position as the partner-of-choice for businesses in the country, and look forward to capitalising on new market opportunities,” Easa Saleh Al Gurg, Deputy Chairman of NBF.
At close of the first half of 2014 the bank’s return on average assets improved to 2.13 per cent compared to 2.04 per cent for the corresponding period in 2013. Return on average equity improved to 15.6 per cent from 14.4 per cent in the same period last year.
