NBF reports Dh150.5m first quarter net profit

28/04/2016 05:51 AST

National Bank of Fujairah (NBF) posted a net profit of Dh150.5 million compared to Dh149.5 million in the corresponding period of 2015, depicting a relatively growth of 0.7 per cent year on year.

The bank’s operating profit was up 18.5 per cent. Operating income experienced a growth of 14 per cent. Net interest income and net income from Islamic financing and investment activities grew by 9.2 per cent. Net fees and commission income grew by 17 per cent and foreign exchange and derivatives income marked a growth of 10.2 per cent compared to the corresponding period of 2015.

“Bank was able to deliver a solid set of results that were not just a year-on-year improvement from an exceptional first quarter for the bank in 2015, but a vast improvement to that seen at the end of December, when market conditions were arguably at their toughest for some time,” said Easa Saleh Al Gurg, Deputy Chairman of NBF.

Operating expenses increased by 6.2 per cent, reflecting ongoing investment in NBF’s business and service platforms and disciplined cost management. Cost-to-income ratio improved to 33.7 per cent from 36.2 per cent (March 2015) in 2016 on the back of operational and cost efficiencies.

Operating profit was Dh223.1 million, up 18.5 per cent compared to Dh188.3 million in the corresponding period of 2015.

Net impairment losses for the first quarter of 2016 were Dh72.6 million compared to Dh38.8 million in the corresponding period of 2015 and Dh75.8 million in the fourth quarter 2015.

The NPL ratio was 4.8 per cent compared to 4.7 per cent as at 31 December 2015. Total provision coverage ratio was maintained at 107.3 per cent as at 31 March 2016 compared to 107.7 per cent year-end 2015.

Loans and advances and Islamic financing receivables of Dh20.8 billion were up by 5.9 per cent from AED 19.7 billion at 2015 year end, and up by 17.7 per cent from 31 March 2015 Customer deposits and Islamic customer deposits of Dh23.1 billion were up by 7.1 per cent from Dh21.6 billion at 2015 year end, and up by 25.4 per cent from 31 March 2015.

Strong capital adequacy and lending to stable resources ratios were maintained at 17.9 per cent and 85.7 per cent respectively. Return on average assets was 1.9 per cent and return on average equity was 14 per cent.

Gulfnews