Dubai: National Bank of Fujairah (NBF) yesterday reported a net profit of Dh64.5 million, up 27.3 per cent for the first quarter of the year, compared to Dh50.6 million reported in the corresponding quarter of 2011.
The bank said the results were driven by strong core business performance and effective asset and liability management.
NBF reported loan loss provisions of Dh43.4 million compared to Dh45.1 million in the corresponding quarter of 2011.
The bank's operating income grew 18.3 per cent and operating profit by 12.7 per cent. Exchange income, including derivative income, saw a growth of 25 per cent.
Cost-to-income ratio was up at 39.2 per cent which the bank attributed to ongoing investment in new initiatives and an operating platform.
"The bank will continue to leverage its strong liq-uidity and capital position to capitalise on opportunities in the UAE for further success," Easa Saleh Al Gurg, deputy chairman of the bank, said in a statement.
Total assets
At the close of the quarter the bank's total assets were Dh15.6 billion, up 4.7 per cent from Dh14.9 billion at year end and up 10.9 per cent from March 31, 2011.
Loans and advances increased 5.2 per cent to Dh11 billion from Dh10.5 billion at end-2011 and up 22.8 per cent from the corresponding quarter last year.
NBF's deposits grew 5.1 per cent in the first quarter to Dh10.9 billion from Dh10.3 billion at year-end and up 19.2 per cent over the first quarter of last year.
While the return on average assets was 1.7 per cent compared to 1.5 cent for the corresponding period in 2011, return on average equity was 12.6 per cent compared to 11 per cent in the same period last year.
