Dubai: National Bank of Fujairah (NBF) on Sunday posted a net profit of Dh281 million in the first half of 2017 compared to 275.1 million reported in the same period last year.
For the second quarter of the year, the bank reported Dh154.9 million net profits up 24.4 per cent compared to the corresponding quarter of 2016, driven by an improvement in the impairment provisions and a high level of resilience in its core business.
“NBF’s strong second quarter results are a reflection of the bank’s underlying resilience and proactive approach to a challenging operating environment. It is good to see our commitment to the long-term sustainability of both our business model and our customer relationships have served us well during this period,” stated Easa Saleh Al Gurg, Deputy Chairman of NBF.
Operating income for the quarter experienced a growth of 7.3 per cent and for the half year a growth of 1.8 per cent compared to the corresponding periods of 2016.
Net interest income and net income from Islamic financing and investment activities grew by 4.4 per cent from Dh413 million in the first half of last year to Dh431 million in the same period this year.
Net non-interest income and net income from Islamic financing and investment activities was Dh239.3 million in the first half of this year, down 2.6 per cent from Dh246 million in the same period last year.
Strong capital adequacy
Loans and advances and Islamic financing receivables rose 4.8 per cent from Dh22.8 billion at 2016 year end to Dh23.9 billion, and up by 13.2 cent from the close of the first half of 2016. Customer deposits and Islamic customer deposits declined by 2.5 per cent from Dh25.9 billion at 2016 year end to Dh25.3 billion but went up by 11.8 per cent year on year.
The bank maintained strong capital adequacy ratio was 17.9 per cent, lending to stable resources ratio stood at 90.3 per cent and eligible liquid assets ratio (ELAR) remains of 18.8 per cent.
Operating expenses increased marginally by 1.3 per cent and the cost-to-income ratio stood at 34.6 per cent compared to 34.8 per cent in the corresponding period of 2016.
Net impairment charge was Dh157.6 million in the first half of 2017 compared to Dh154.7 million in the corresponding period of 2016. The NPL ratio was 5.23 per cent compared to 4.95 per cent as at year-end 2016. Total provision coverage ratio was 92.5 per cent compared to 101.3 per cent as at year in end 2016.
“Effective risk management, good governance and proactive business management are essential elements for ongoing success, and we remain committed to creating exceptional value for our customers and shareholders,” Al Gurg said.
