National Bank of Fujairah PSC (NBF) recorded a net profit of Dhs64.5m for the three month period ended 31 March 2012, compared to Dhs50.6m in the corresponding period of 2011. Results were driven by strong core business performance and effective asset and liability management. Loan loss provision was Dhs43.4m compared to Dhs45.1m in the corresponding period of 2011.
Operating income grew by 18.3% and operating profit by 12.7%. Exchange income, including derivative income, saw a growth of 25.0%. Cost-to-income ratio of 39.2% reflects ongoing investment in new initiatives and operating platform to enhance customer service experience. Strong capital adequacy and advances-to-deposits ratios were maintained at 20.6% (Tier 1 ratio of 13.2%) and 87.0% respectively, well ahead of Central Bank minimum requirements.
Total assets of Dhs15.6bn were up 4.7% from Dhs14.9bn at year end and up 10.9% from 31 March 2011. Loans and advances of Dhs11.0bn were up 5.2% from Dhs10.5bn at year end and up 22.8% from 31 March 2011. Deposits of Dhs10.9bn were up 5.1% from Dhs10.3bn at year end and up 19.2% from 31 March 2011. Return on average assets was 1.7% compared to 1.5% for the corresponding period in 2011. Return on average equity was 12.6% compared to 11.0% for the corresponding period in 2011
Easa Saleh Al Gurg, KCVO, CBE Deputy Chairman said, “We are pleased to see consistent and resilient business growth which has provided the Bank with a solid start to 2012 despite challenging market conditions. The Bank recorded a net profit growth of 27.3%, reflecting strong core business performance, prudent management practices and effective asset and liability management. The Bank will continue to leverage its strong liquidity and capital position to capitalize on opportunities in the UAE for further success.”