National Bank of Fujairah net profit increases 26.7%Staff writer ▼ | July 13, 2015
National Bank of Fujairah PJSC (NBF) announced its results for the half year ended June 30, 2015. Net profit was AED 303.6 million compared to AED 239.5 million in the corresponding period of 2014; an increase of 26.7%.
National Bank of Fujairah Operating profit was AED 390.5 million
Net impairment losses were AED 86.9 million compared to AED 65.1 million in the corresponding period of 2014. This largely reflects the increase in the loan book and includes the collective impairment provision required by International Financial Reporting Standards (IFRS) and the Regulator.
The quality of assets continues to improve as evidenced by the reduction in the NPL ratio from 4.8% to 3.5%.
Total provision coverage improved to 146.6% from 118.5% at 30 June 2014.
Operating income experienced a growth of 26.0%. Net interest income grew by 21.9%; net fees and commission income by 39.2% and foreign exchange and derivatives income marked a growth of 26.1% compared to the same period in 2014.
Operating expenses increased by 22.2%, reflecting on-going investment in NBF's business and service platforms. Cost-to-income ratio improved to 35.7% from 36.8% over the same period in 2014.
Loans and advances of AED 18.4 billion were up by 12.8% from AED 16.3 billion at 2014 year end, and up by 24.5% from 30 June 2014.
Customer deposits of AED 19.5 billion were up by 8.5% from AED 17.9 billion at 2014 year end, and up by 17.0% from 30 June 2014
Shareholders' equity went up by 20.9% to AED 4.1 billion compared to AED 3.4 billion at 2014 year end. Strong capital adequacy and lending to stable resources ratios were maintained at 18.4% (Tier 1 ratio: 15.7%) and 86.9% respectively, well ahead of Central Bank minimum requirements.
Return on average assets was 2.3%, up from 2.1% over the same period in 2014.
Return on average equity was 16.3%, up from 15.6% over the same period in 2014.
The bank was voted "Best Corporate Bank UAE" and "Best Commercial Bank UAE" at the Banker Middle East Industry Awards. This marks the fourth consecutive year that NBF has retained the best domestic commercial bank title. ■