(MENAFN- Khaleej Times) National Bank of Fujairah, or NBF, posted on Sunday 26.7 per cent jump in half-yearly net profit to Dh303.6 million on the back of core business growth, improving asset quality, and disciplined cost management.
In a statement, the bank said operating income experienced strong growth at 26 per cent a net interest income grew 21.9 per cent compared to the same period last year, reflecting an increase in business volumes.
NBF said compared to first half 2014, its customer financing surged by 24.5 per cent, customer deposits were up 17 per cent, and shareholders' equity was up 30.4 per cent. Earnings per share for the first six months of 2015 were Dh 0.24, up 28.1 per cent when compared to the same period in 2014.
Sir Easa Saleh Al Gurg, Deputy chairman, of the bank said NBF maintained its growth momentum through an unwavering focus on its core businesses, service capabilities and constant innovation on product offerings to meet the changing needs of customers. "We were also pleased to see growing recognition for NBF, ranging from peer bank recognition of its seamless straight-through-processing capabilities to acknowledgement of its rising stature as a trusted partner of choice for businesses in the UAE."
"As we reach the half-way point for 2015, NBF's impressive financial results, healthy liquidity, strong capital adequacy and prudent business strategy form a strong platform for growth for the remainder of the year and beyond. There is no doubt that our future is inextricably linked to the UAE and we remain committed to exploring opportunities in this marketplace that create exceptional value for our customers and shareholders," said Al Gurg. NBF's net impairment losses were Dh86.9 million in the first half compared to Dh65.1 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 non performing loans ratio from 4.8 per cent to 3.5 per cent."
Total provision coverage improved to 146.6 per cent from 118.5 per cent first half 2014. Net fees and commission income by 39.2 per cent and foreign exchange and derivatives income marked a growth of 26.1 per cent compared to the same period in 2014. The bank's operating expenses increased by 22.2 per cent, reflecting on-going investment in NBF's business and service platforms. Cost-to-income ratio improved to 35.7 per cent from 36.8 per cent over the same period in 2014.
Loans and advances grew by 12.8 per cent to Dh 18.4 billion from Dh16.3 billion at 2014 year end, and up by 24.5 per cent from 30 June 2014. Customer deposits rose by 8.5 per cent to Dh 19.5 billion from Dh17.9 billion at 2014 year end.
The bank said shareholders' equity went up by 20.9 per cent to Dh4.1 billion compared to Dh3.4 billion at 2014 year end. "Strong capital adequacy and lending to stable resources ratios were maintained at 18.4 per cent (Tier 1 ratio: 15.7 per cent) and 86.9 per cent respectively, well ahead of Central Bank minimum requirements." Return on average assets was 2.3 per cent, up from 2.1 per cent over the same period in 2014, the statement said.
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