National Bank of Fujairah Q2 profit up 24.4 percent

FUJAIRAH / WAM

National Bank of Fujairah (NBF) announced its results for the six month period ended June 30, 2017.
It shows a net profit of AED154.9 million in second quarter of 2017, Q2, a rise of 24.4 percent over the corresponding quarter of 2016.
On the back of a strong
Q2 2017 performance, NBF
reported a net profit of AED281.0 million for the half year ended June 30, H1, up 2.2 percent over the corresponding period of 2016.
Operating income for
the quarter experienced a growth of 7.3 percent and for the half year a growth of 1.8 percent compared to the corresponding periods of 2016. Net interest income and net income from Islamic financing and investment activities grew by 4.4 percent and income from investments and Islamic instruments saw a growth of 113.0 percent compared to the corresponding period of 2016.
Loans and advances and Islamic financing receivables rose 4.8 percent from AED 22.8 billion at 2016 year end to AED 23.9 billion, and up by 13.2 percent from 30th June 2016. Customer deposits and Islamic customer deposits declined by 2.5 percent from AED 25.9 billion at 2016 year end to AED 25.3 billion but went up by 11.8 percent from June 30, 2016.
Shareholders’ equity of AED 4.7 billion exceeded the 2016 year end level by 3.4 percent, an increase of 6.6 percent from 30th June 2016.
Strong capital adequacy and liquidity levels were maintained, well ahead of Central Bank’s minimum requirements. Capital adequacy ratio was 17.9 percent, lending to stable resources ratio stood at 90.3 percent and eligible liquid assets ratio (ELAR) remains as one of the highest at the industry level at 18.8 percent. ELAR industry average stood at 16.2 percent for the year-end, based on regulatory statistics.
Operating expenses increased marginally by 1.3 percent, reflecting NBF’s disciplined cost management, prudent investments in our businesses, systems and infrastructure, including a set of digital initiatives to enhance our offerings and customer service. Cost-to-income ratio stood at 34.6 percent compared to 34.8% in the corresponding period of 2016.
NBF continued with its prudent and transparent approach towards proactively recognising and providing for problem accounts. Net impairment charge was AED 157.6 million compared to AED 154.7 million in the corresponding period of 2016. The NPL ratio was 5.23% compared to 4.95 percent as at 31st December 2016. Total provision coverage ratio was 92.5 percent compared to 101.3 percent as at 31st December 2016. Total provision coverage including collaterals improved to 104.6 percent.