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National Bank of Fujairah on Bank Street Bur Dubai. Image Credit: Clint Egbert/Gulf News

Dubai: National Bank of Fujairah (NBF) on Wednesday reported nine-month net profit of Dh511.6 million up 10.7 per cent over the corresponding period of 2018.

NBF’s operating profit for the period were up 7.2 per cent to Dh862.3 million compared to Dh804.4 million in the same period last year.

Operating profit of Dh295.3 million was posted in the third quarter of 2019, an increase of 4.7 per cent over the previous quarter, and an increase of 3.8 per cent year on year. Bank’s improved profits were also supported by higher fee income and exchange and derivatives income.

“With slow global growth, volatile geopolitical conditions and a declining interest rate environment, NBF’s resilient performance reinforces its ability to navigate through the changing operating environment with a resolute business focus coupled with healthy liquidity and strong capital adequacy,” said Easa Saleh Al Gurg, Deputy Chairman of NBF .

Operating income for the nine month period grew 8.5 per cent to Dh1.28 billion year on year. Net interest income and net income from Islamic financing and investment activities grew by 5.8 per cent and net fees, commission and other income by 14.7 per cent compared to the corresponding period of 2018.

Foreign exchange and derivatives income experienced a growth of 9.1 per cent reaching Dh112.5 million for the nine month period compared to Dh103.1 million in 2018.

Balance sheet

NBF’s total assets reached Dh42.5 billion; a rise of 6.9 per cent from Dh39.8 billion at 2018 year-end, up by 9.2 per cent from 30 September 2018. Loans and advances and Islamic financing receivables rose 5.2 per cent from Dh26.2 billion at 2018 year end to Dh27.6 billion, and up by 3.6 per cent year on year.

Customer deposits and Islamic customer deposits grew 2.4 per cent to Dh31.2 billion compared to Dh30.5 billion at 2018 year end, up by 6.8 per cent year on year.

Operating expenses increased by 11 per cent for the nine month period ended 30 September 2019 compared to the corresponding period of 2018. Cost-to-income ratio stood at 32.7 per cent compared to 31.9 per cent in the corresponding period of 2018 and 33.2 per cent for the year ended 31 December 2018.

The bank’s net impairment provisions were at Dh350.7 million for the nine month period compared to Dh342.3 million in the same period last year.

Capital adequacy and lending to stable resources ratios were at 16.3 per cent and 89.3 per cent respectively at the close of the third quarter, while the bank reported Tier 1 ratio of 15.2 per cent common equity ratio of 13.8 per cent.

In October 2019, NBF successfully completed its inaugural public issuance of Additional Tier 1 (AT1) capital securities of $ 350 million (AED 1.3 billion). “The inaugural public issuance of AT1 capital has enhanced capital adequacy, further strengthening NBF’s position to support its growth strategy and face the current market environment with confidence,” said Al Gurg.