Dubai: National Bank of Fujairah (NBF) on Wednesday reported Dh167.6 million net profits for the first three months of 2019 up 15.3 per cent compared to Dh145.4 million reported in the corresponding period of 2018.

Operating profit rose 15 per cent to Dh285.1 million in the first quarter compared with Dh24 million in the same period in2018.

“With this encouraging start to 2019, I am confident that the Group will continue to perform admirably throughout the course of the year tapping new business opportunities, including leveraging the new opportunities offered by digitalisation and demonstrably performing our role in the development of the UAE economy,” said Easa Saleh Al Gurg, Deputy Chairman of NBF.

Operating income at Dh415.5 million saw a growth of 12.5 per cent compared to the corresponding period of 2018. Net interest income and net income from Islamic financing and investment activities grew 14.7 per cent year on year and income from investments and Islamic instruments marked a significant bounce back compared to the corresponding period of 2018.

Foreign exchange and derivatives income grew 10 per cent reaching Dh40 million for the three-month period compared with Dh36.3 million in 2018.

Operating expenses increased by 7.6 per cent, reflecting the bank’s new investments in our businesses, systems and infrastructure. Cost-to-income ratio improved to 31.4 per cent compared to 32.8 per cent in the corresponding period of 2018.

Balance sheet

Total assets touched Dh40 billion at the close of the first quarter 2019, up 0.7 per cent from Dh39.8 billion at 2018 year-end and up by 9.4 per cent from 31 March 2018.

Loans and advances and Islamic financing receivables were sustained at the year-end 2018 level of Dh26.2 billion and up by 4 per cent first quarter end 2018. Customer deposits and Islamic customer deposits stood at Dh30.2 billion, compared to Dh30.5 billion at year-end 2018 and up by 8.7 per cent from 31 March 2018.

NBF recorded net impairment provisions of Dh117.5 million for the three-month period compared to Dh102.6 million in 2018. Total provision coverage ratio including impairment reserve stood at 101.6 per cent compared to 102 per cent as at 31 December 2018. The NPL ratio was 5.1 per cent compared to 5.13 per cent as at 31 December 2018.

The bank’s profitability improved year on year in the first quarter with return on average assets at 1.7 per cent up from 1.6 per cent for the corresponding period in 2018 and return on average equity to 13 per cent, up from 12.1 per cent in the same period last year.

NBF continued to maintain strong capital adequacy of 15.9 per cent with tier 1 ratio at 14.7 per cent and common equity tier 1 ratio at 13.3 per cent. Lending to stable resources ratio stood at 87.1 per cent at the close of Q1 2019.