National Bank of Umm Al Qaiwain achieves record net profit of Dh502.61million in 2023
Net interest income and operating income soared by 52% and 63% respectively
Umm Al Quwain: National Bank of Umm Al Qaiwain (NBQ) announces its exceptional financial performance for the fiscal year 2023, marked by a record net profit of Dh502.61 million, reflecting a remarkable 38% year-on-year increase. This milestone not only highlights NBQ's financial strength but also underscores its unwavering commitment to delivering value and excellence to its stakeholders.
Financial overview
In 2023, NBQ witnessed significant growth across key financial metrics. Net interest income and operating income soared by 52% and 63%, reaching Dh606 million and Dh 618 million, respectively. Total assets expanded to Dh14.8 billion, with gross loans and advances at Dh 7.2 billion and customer deposits at Dh 8.7 billion.
Adnan Al Awadhi, Chief Executive Officer, National Bank of Umm Al Qaiwain, remarked on the financial success, "The year 2023 has been truly exceptional for NBQ, as reflected in our record-breaking net profit. Our strategic focus on prudent risk management, innovation, and operational excellence has not only driven substantial growth but has solidified our position as a leading player in the banking sector."
Factors driving profit growth
NBQ attributed its annual profit growth to strategic loan expansion, innovative revenue streams, improved profit margins, and effective cost optimization. Al Awadhi provided further insights, stating, "Our commitment to diversification, technological advancements, and customer-centric solutions played pivotal roles in achieving these outstanding results. We navigated challenges with resilience and embraced opportunities, positioning NBQ for sustained success."
Key financial indicators
NBQ reported a net interest margin improvement to 4.8%, resulting in a return on average assets of 3.5% and a return on average equity of 9.2%, showcasing the bank's efficient management of costs and favorable interest rate environment.
Customer-centric initiatives
Throughout 2023, NBQ focused on enhancing customer experience through digital initiatives, strategic partnerships, and specialized services. Al Awadhi emphasized, "Customer satisfaction remains at the core of our strategy. Our commitment to innovation and customer-centric solutions positions us as a preferred banking partner in the UAE. As we continue to invest in technology, NBQ aims to set new benchmarks in customer service excellence."
Future strategies and vision
Looking ahead, NBQ outlined plans to sustain and enhance profitability by financing non-real estate businesses, expanding retail loan distribution networks, and prioritizing digitalization and automation.
Al Awadhi shared his vision for the future, stating, "Our core strategy centers around strategic growth, diversification, and staying ahead of market dynamics. We are confident that our focus on conservative risk policies, technological innovation, and customer satisfaction will propel NBQ to even greater heights in the coming years. Our goal is not just to meet expectations but to exceed them, becoming the bank of choice for individuals and businesses across the UAE."
The bank's stellar financial performance is attributed to strategic loan expansion, diversified revenue streams, and robust risk management practices. NBQ's commitment to customer-centric initiatives, technological advancements, and regulatory compliance positions it as a leading force in the UAE banking sector. Looking ahead, the bank aims to sustain and enhance profitability through strategic growth, diversification, and a continued focus on innovation, cementing its role as a trusted financial partner and propelling NBQ towards new heights in the years to come.