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Umm Al Qaiwain / Gulf Time
National Bank of Umm Al-Qaiwain has posted a net profit of AED165.30 million for the six months of the year 2022. Net profit has cost to income stood at 29.38% during six months, reflecting the bank’s operational efficiencies and
disciplined cost management.
The bank is focused on exercising prudence and building up provisions to ensure adequate cushions during current challenging times increased by 25.72% compared to AED131.48 million for six months of previous year due to improving external environment. The bank holds collateral and specific provision to the tune of 195.66% for vast majority of the non-performing loans, which reflects prudent management and effective monitoring of loans and advances portfolio.
While the total assets of the bank stood at AED13.35 billion, deposits to advances ratio is maintained prudently at 123.86%..
Capital adequacy ratio of the bank improved to 44.51% as at 30 June 2022, which continues to be well over the minimum threshold stipulated by the UAE central bank in accordance with Basel III guidelines. This provides opportunities to leverage. Tier I ratio is maintained strongly at 43.37%.
Share capital of the bank increased to AED2 billion during the quarter with the bonus shares issued. Total Shareholders’ equity is AED5.11 billion.
The bank has maintained high liquidity with stable resources to advances ratio of 164.33% as at 30 June 2022, while the Central Bank of UAE has set 100% as the minimum limit.