National Bank of Fujairah 2011 three months net profit up 32.8%

National Bank of Fujairah (NBF) is pleased to announce its results for the three month period ended 31 March 2011.

NBF recorded a net profit of AED 50.6 million compared to AED 38.1 million in 2010.

Results were driven by strong core business performance and robust balance sheet management in difficult credit conditions.

Loan loss provision of AED 45.1 million was marginally less compared to AED 47.6 million in the corresponding period of 2010, despite a build up of collective provisioning in line with new Central Bank requirements.

Operating profit grew by 11.7% and operating income by 10.5%.

Cost to income ratio of 38.3% (2010:37.5%) reflects further investments in initiatives to fuel the future business growth.

Strong capital adequacy and advances to deposits ratios were maintained at 21.3% (Tier 1 ratio of 13.4%) and 90.5%, well ahead of Central Bank minimum requirements.

Total assets of AED 14.1 billion were up 9.1% from AED 12.9 billion at year end.

H.E. Sir Easa Saleh Al Gurg, Deputy Chairman commented: “We are pleased to see a strong start to 2011 and an encouraging net profit growth of 32.8% despite higher regulatory provisioning requirements. This is a reflection of the Bank’s prudent management practices and solid underlying fundamentals. The Bank is using its strong liquidity and capital adequacy positions to capitalise on new business opportunities in the United Arab Emirates (UAE). The Bank will continue to improve its market position by strengthening its customer-centric approach and seek new lending opportunities as the market continues to recover.” 

National Bank of Fujairah PSC (NBF) has, for the three months of 2011, recorded a profit of AED 50.6 million compared to a profit of AED 38.1 million in the corresponding period of 2010. 

Operating profit increased by 11.7% to AED 95.7 million compared to AED 85.7 million in the corresponding period of 2010. The Bank’s operating income increased to AED 148.5 million from AED 134.4 million in the same period of 2010, showing a growth of 10.5%. This reflected a strong performance in the Bank’s core business and robust balance sheet management. Operating expenses were at AED 56.9 million, while the cost to income ratio was 38.3%. 

NBF’s net interest income of AED 98.5 million registered a growth of 12.7% over last year’s AED 87.4 million. Exchange income, which includes derivative income, witnessed a growth of 7.8% to AED 10.1 million. 

A gain on investment of AED 4.1 million was recognised through the statement of income, compared to AED 1.7 million for the corresponding period of 2010. 

The loan book grew by 3.2% in an environment of subdued credit demand. Total assets grew to AED 14.1 billion from AED 12.9 billion at the end of 2010. 

NBF continues to be one of the banks with the strongest capital adequacy ratios and liquidity positions in the UAE. As at 31 March 2011, the Bank’s total capital adequacy ratio was 21.3% and Tier 1 ratio was 13.4%. The advances to deposits ratio was 90.5%.