Business

National Bank of Fujairah posts 87% drop in net profit in first nine months of 2020

National Bank of Fujairah posts 87% drop in net profit in first nine months of 2020

National Bank of Fujairah on Wednesday reported an 87 per cent drop in its net profit for the first nine months of 2020, compared to the same period last year, as the bank continued to build “substantial impairment provisions” on account of COVID-19.

Net profit fell to Dh66.3 million for the nine-month period ended September 30, from Dh511.6 million a year ago. NBF secured net impairment provisions of Dh641 million for the nine-month period compared to Dh350.7 million in 2019.

“All the way through the exceptionally challenging 2020 … NBF has maintained its resolute focus on the execution of its strategic priorities,” said Raja Al Gurg, Deputy Chairman, in a statement. “NBF continues to invest in digitization and digitally enabled services to proactively manage business and differentiate its operating platform for future growth.”

The bank was able to keep a tight lid of on expenses. Operating expenses in the period fell 15.3 per cent to Dh354.8 million, partly due to digitization. “The board is confident that the fundamental strength of our franchise remains intact despite the immediate challenges to profitability,” said Al Gurg.