(MENAFN - Khaleej Times) The bank's net profit rose to Dh393.1 million in 2013 from Dh305.8 million in the previous year and operating profit rose 16.9 per cent to Dh560.7 million from Dh479.5 million in 2012, the bank said in a statement.
Last year's profit growth marked NBF's best full-year performance to date, the bank said in a statement.
Loan loss provision fell to Dh167.6 million, showing an improvement of 3.5 per cent from Dh173.7 million in 2012. The non-performing loan ratio also improved to 4.6 per cent from 7.6 per cent, NBF said.
Operating income grew by 16.5 per cent while foreign exchange and derivatives income rose12.3 per cent. Operating expenses rose by 15.7 per cent in 2013 owing to the bank's investment in improving its businesses and services, NBF said.
Total assets amounted to Dhs21.5 billion at the end of 2013, up 22.3 per cent year-on-year.
Shaikh Saleh bin Mohamed bin Hamad Al Sharqi, NBF chairman, said the bank has not only demonstrated resilience during the recent market crisis but its focus on core business, service quality and prudent risk management has enabled it to outperform the industry average for a fourth year running to achieve its best profit ever. "Most importantly, as market sentiment improves, the bank has established a firm foundation and stands ready to leverage the exciting developments in the regional economy for further growth."
"In view of the bank's record performance I, on behalf of the board of directors, am pleased to recommend an increase in dividend of 25 per cent and propose a distribution of profits, in the form of cash dividends, of 12.5 per cent (2012: 10 per cent) of paid-up capital," he said.
Easa Saleh Al Gurg, the bank's deputy chairman, said NBF's consistently strong performance underscored its focus on delivering long term sustainable results, while the market recognition it has garnered over the years is reaffirmation of the bank's commitment to its client relationships and the development of the local banking sector. "With positive developments, such as the Dubai Expo and the ongoing infrastructure based investment in Abu Dhabi and Fujairah, providing momentum for the next leg of the UAE's growth journey, NBF foresees even more positive conditions going forward."
NBF's total assets of Dh21.5 billion were up 22.3 per cent from Dh17.5 billion at 2012 year end, loans and advances reached Dh14.3 billion, up 17.5 per cent from Dh12.2 billion at the end of 2012. Customer deposits touched Dh15 billion, up 24.6 per cent from Dh12 billion in 2012.