National Bank of Fujairah reported net profit of Dh60.4 million in Q1 2022, a 43.7 per cent growth compared to the year-ago period.
Compared to the preceding quarter, net profit was up 143.3 per cent.
Supported by higher fee, exchange and investment income, operating profit stood at Dh293.2 million for the three-month period, up 18.2 per cent.
Operating income reached Dh412.8 million, up 14.6 per cent compared to Dh360.2 million in the corresponding period of 2021 and up 15.5 per cent compared to Q4 2021.
Net interest income and net income from Islamic financing and investment activities climbed 4.8 per cent, and net fees, commission and other income were 35 per cent compared to the corresponding period of 2021, reaching Dh238.6 million and Dh105.8 million, respectively, a growth of 2.9 per cent and 14.3 per cent, respectively, compared to Q4 2021.
Operating expenses increased by 6.6 per cent, reflecting NBF’s new investments in its businesses, systems and infrastructure. These investments include a set of digitalisation initiatives to enhance the bank’s focus on exceptional customer service through digital adoption and innovation.
“Despite the evolving global landscape being dominated by significant geopolitical tensions, volatility and turbulence, the UAE has moved steadily forward and the economic outlook is revealing positive signs of sustained recovery. The UAE achieved 3.8 per cent GDP growth in 2021; and is expected to witness economic growth of 4.2 per cent this year despite growing inflationary pressures, according to the Central Bank of the UAE. With air travel rebounding, the real estate sector on an upward trajectory and oil prices staying high, NBF is well poised to benefit from the growth that should continue for some time,” said Raja Easa Al Gurg, Deputy Chairperson.
Cost-to-income ratio improved to 29 per cent compared to 31.1 per cent in the corresponding period of 2021.
The capital adequacy ratio (CAR) stood at 18.7 per cent (Tier 1 ratio of 17.5 per cent and CET 1 ratio of 13.5 per cent) compared to 19.1 per cent (Tier 1 ratio of 18.0 per cent and CET 1 ratio of 13.8 per cent) at 2021 year-end.
Loans and advances and Islamic financing receivables rose by 6.2 per cent to reach Dh27.2 billion compared to Dh25.6 billion at 2021 year-end, up by 8.7 per cent from March 31, 2021.
Customer deposits and Islamic customer deposits stood at Dh32.17 billion compared to Dh32.20 billion at 2021 year-end, up by 13.6 per cent from March 31, 2021. Current and Saving Accounts (CASA) deposits increased by Dh415.0 million from 2021 year-end, a 2.7 per cent increase to Dh15.8 billion as at March 31, 2022.
CASA deposits improved to a record 49.2 per cent of total customer deposits compared to 47.9 per cent as at December 31, 2021 and 39.8 per cent as at March 31, 2021, cushioning the impact from the prevailing lower interest rates.
Total assets reached Dh42.6 billion compared to Dh42.9 billion at 2021 year-end, up by 8.9 per cent from March 31, 2021.
