NBF posts Dh401.4m 9-month net profit

Dubai: National Bank of Fujairah (NBF) has reported a Dh401.4 million net profit for the nine-month period ended September 30, 2017, up 2.7 per cent over the corresponding period of 2016.

For the third quarter of the year, the bank reported a net profit of Dh120 million, up 3.9 per cent compared to Dh116 million the same quarter in 2016.

The bank posted an operating profit of Dh228.7 million in the third quarter of 2017, up 11.9 per cent year on year, and an increase of 5.2 per cent for the nine month period compared to 2016.

Net interest income and net income from Islamic financing and investment activities for the quarter grew by 11.5 per cent, and 6.8 per cent for the nine-month period compared with 2016.

Operating income for the quarter experienced a growth of 8.6 per cent and 4 per cent for the nine-month period compared to 2016. Income from investments and Islamic instruments doubled to Dh14.7 million compared to the corresponding period of 2016.

“NBF’s strong third quarter results are a reflection of the bank’s underlying resilience and proactive approach to an ever changing operating environment. Maintaining a prudent and conservative approach to risk management, efficient management of liquidity and pricing, particularly on high quality liquid assets, have contributed to improvement in performance,” said Eisa Saleh Al Gurg, Deputy Chairman of NBF.

Bank’s loans and advances and Islamic financing receivables rose 3.6 per cent from Dh22.8 billion at 2016 year end to Dh23.6 billion, and up by 8 per cent from 30 September 2016. Customer deposits and Islamic customer deposits increased marginally by 0.6 per cent from Dh25.9 billion at yearend 2016 to Dh26.1 billion, and up by 12.9 per cent from end of third quarter 2016.

Net impairment charge was Dh266 million at the close of the third quarter of 2017 compared to Dh243.2 million in the corresponding period of 2016. Total provision coverage including collaterals improved to 106.6 per cent at the close of the third quarter. Capital adequacy ratio was 17.95 per cent at third quarter end.