Dubai: National Bank of Fujairah (NBF) on Thursday reported a net profit of Dh149.5 million, up 29 per cent compared to Dh115.3 million in the corresponding period of 2014.

Operating profit was up 24.3 per cent up at Dh188.3 million compared to Dh151.5 million in the same quarter of 2014.

While operating income grew 22.9 per cent, net interest income grew by 19.1 per cent and foreign exchange and derivatives income marked a growth of 42 per cent year on year.

“The bank’s positive start to 2015 continues to reaffirm the efficacy of our long term strategies and our solid financial position. That we were able to maintain good growth in net and operating profits just goes to show that there are still good opportunities in the market, and the success of our recent private placement is an encouraging reminder of the market’s confidence in us,” said Easa Saleh Al Gurg, Deputy Chairman of NBF.

Net impairment losses were marginally up at Dh38.8 million in the first quarter compared to Dh36.2 million in the corresponding period of 2014. The large portion of the charge now represents mandatory general provision, reflecting strong growth in the loan book.

Asset quality is seen improving the non-per forming loan (NPL) ratio declined from 4.5 per cent at the close of the first quarter of 2014 to 3.9 per cent at the first quarter end 2015. Total provision coverage improved to 133.1 per cent at the close of the first quarter of 2015 from 121.7 per cent as the March 31 2014.

Cost-to-income ratio

Loans and advances grew by 8.5 per cent to Dh17.7 billion. Customer deposits of Dh18.5 billion were up by 2.9 per cent from Dh17.9 billion at 2014 year end, and up by 16.1 per cent the close of first quarter of 2014.

Operating expenses increased by 20.5 per cent. Cost-to-income ratio improved to 36.2 per cent from 36.9 per cent in the corresponding period of 2014.

Shareholders’ equity went up by 16.4 per cent to Dh3.9 billion year on year. The bank issued the second tranche of Tier 1 capital amounting to Dh500 million enhancing its Tier 1 capital ratio and quality of capital.

Capital adequacy and lending to stable resources ratios were at 18.4 per cent and 88.3 per cent respectively, while the Tier 1 ratio was at 15.6 per cent at the close of the first quarter.

Profitability matrix of the bank showed clear improvements with return on average assets at 2.3 per cent, up from 2.1 per cent for the corresponding period in 2014. Return on average equity was 16.4 per cent, up from 15.3 per cent for the corresponding period in 2014.