Dubai: National Bank of Fujairah PSC (NBF) has recorded a net profit of Dh104.3 million for the year 2009. In the corresponding period in 2008, NBF made a loss of Dh50.3 million.
The loan impairment charge for the year is Dh214.3 million compared to a charge of Dh179.7 million in the corresponding period in 2008. The charge includes an amount of Dh73 million in respect of the Bank’s exposure of Dh92 million to the Al Gosaibi and Saad Groups of Saudi Arabia.
The Bank continues to be prudent and proactive in providing for potential loan losses in view of uncertain conditions.
Operating income reduced to Dh506.5 million in comparison to the corresponding period in 2008 of Dh537.9 million reflecting the general slowdown in economic activity and higher cost of funds due to market conditions.
The liquidity cost in the market continues to be at unprecedented levels and has had a negative impact on net interest income and profit.
In line with the Bank’s strategy, investment in funds was reduced to Dh56.6 million from Dh227.4 million as at the year end.
The Portfolio saw some recovery and as a result, a gain on investment of Dh37.6 million was recognized through the statement of income, compared to a loss of Dh227.0 million for the corresponding period of 2008.
Total assets stood at Dh11.9 billion but down from Dh12.8 billion as at the year end. The reduction in the statement of financial position reflects subdued demand for credit in the corporate sector and the Bank’s prudent risk appetite.
