Noor Bank's 9-month profit jumps 43% to Dh451m

19/11/2015 08:02 AST

Dubai's Shariah-compliant Noor Bank posted a net profit of Dh451 million for the nine months ended September 30, 2015, an increase of 43 per cent from the same period last year.

Earnings were bolstered by a 41 per cent increase in net income from Islamic financing and a 44 per cent jump in net fees and other income generated across all business segments.

The bank witnessed a significant growth in balance sheet with total assets increasing by 34 per cent to Dh38.9 billion compared with Dh29 billion at the end of 2014, whilst customer financing increased by Dh5.5 billion during the first 9 months.

While recording a growth in customer financing, the Bank has not only been able to maintain one of the lowest advances to deposits ratio of 76 per cent across UAE banking sector but has also successfully reduced impaired financing ratio to 4.7 per cent with a coverage ratio of 109 per cent.

Hussain Al Qemzi, CEO of Noor Bank, said the bank has consistently been able to deliver strong financial results through well-diversified growth across all of key operating business segments while maintaining focus on asset quality and robust liquidity position.

Customer deposits remain to be Noor Bank's primary source of funding which witnessed an increase of 29 per cent to Dh30.8 billion during the first 9 months. The Bank successfully issued its inaugural $500 million five-year Sukuk during this year in order to achieve diversification of funding mix and improve its liability maturity profile.

The Bank's return on equity increased to 18 per cent compared to 16.2 per cent in the same period last year whereas capital adequacy ratio stands at 15 per cent as of September 30, 2015.

Emirates 24|7