NBF reports 35% growth in profit

National Bank of Fujairah shareholders yesterday approved a rights issue and bonus issue, raising the bank's issued share capital to Dh905 million and total shareholders' funds to Dh1.2 billion.

National Bank of Fujairah (NBF) has reported a 35 per cent increase in its 2004 profit over the previous year.

NBF must keep its growth rate high, said Shaikh Saleh Bin Mohammad Al Sharqi, Chairman of the Fujairah Department of Industry and Economy and Chairman of NBF.

Shaikh Saleh spoke at the annual meeting of the bank's board of directors, held yesterday at Al Diar Siji Hotel in Fujairah.

NBF's shareholders approved a bonus share issue of Dh150 million, Shaikh Saleh said. The rights issue raised Dh225 million, he said.

"We are determined to see NBF grow. This further strengthening of our capital gives us a very strong base on which we can build," Shaikh Saleh said.

"With total equity of more than Dh1.2 billion, we are well-placed … to see the bank's activities not only grow in terms of size, but also in terms of the breadth of our business," he said.

Profits in 2004 increased to Dh125.48 million and are now four times the level of 1999, Shaikh Saleh said. Assets grew to Dh4.2 billion, representing an increase of some 32 per cent. Deposits grew to Dh2.7 billion, an increase of almost 25 per cent.

"We are recommending the 2004 profits be distributed by way of bonus shares. We are also recommending that we add to this through a further bonus issue, to make the total bonus issue Dh150 million," Shaikh Saleh said.

As a result, the balance sheet shows total shareholders' funds of Dh985.5 million, he said. At the end of 1999, shareholders' funds were set at Dh457 million.

All sections of NBF contributed to the bank's 2004 results, Shaikh Saleh said.

"This year has started well. We plan to open two branches this year," while additional branches are at the planning stage, he said.