Business

NBF's H1 2019 net profit rose 15.1% to Dh357.1 million

NBF's H1 2019 net profit rose 15.1% to Dh357.1 million

Dubai: National Bank of Fujairah (NBF) posted a net profit of Dh357.1 million for the first half of 2019, up 15.1 per cent over the corresponding period of 2018.

NBF also recorded its best ever half year operating profit of Dh567 million which increased by 9.1 per cent compared to Dh519.9 million in the corresponding period of 2018.

“It is encouraging that NBF is able to maintain its growth momentum through a clear focus on its core business, effective execution of its business and operational strategy, enhanced return on capital and differentiation through exceptional customer service,” said Easa Saleh Al Gurg, Deputy Chairman of NBF.

Bank’s operating income for the six months rose 9.5 per cent to Dh841.5 million compared to the corresponding period of 2018. This was achieved by growth in core business volumes, proactive asset and liability management and effective pricing strategies.

Net interest income and net income from Islamic financing and investment activities grew by 7.3 per cent and net fees and commission income by 13.8 per cent compared to the corresponding period of 2018. Income from investments and Islamic instruments marked a significant bounce back; fair value gain on fair value through profit or loss (FVTPL) and fair value through other comprehensive income (FVOCI) investment portfolio improved by Dh50.3 million during the six-month period ended 30 June 2019.

Foreign exchange and derivatives income experienced a growth of 6 per cent reaching Dh74.2 million for the six-month period compared to Dh70.0 million in 2018.

Operating expenses increased by 10.3 per cent. Cost-to-income ratio stood at 32.6 per cent compared to 32.4 per cent in the corresponding period of 2018.

Assets reached Dh42.5 billion; a rise of 6.9 per cent from Dh39.8 billion at 2018 year-end, up by 11.7 per cent from 30 June 2018. Loans and advances and Islamic financing receivables rose 6.6 per cent from Dh26.2 billion at 2018 year-end to Dh27.9 billion, and up by 7.2 per cent from 30 June 2018.

Customer deposits and Islamic customer deposits grew 1.7 per cent to Dh31.0 billion compared to Dh30.5 billion at 2018 year-end and up10 per cent year on year.

NBF maintained net impairment provisions of Dh209.9 million for the six-month period compared to Dh209.7 million in 2018. Total provision coverage ratio (including impairment reserves) improved to 108.6 per cent from 102 per cent as at 31 December 2018. The NPL ratio improved to 4.8 per cent compared to 5.1 per cent as at 31 December 2018.

At the close of H1 2019, the bank continued to maintain strong capital adequacy and lending to stable resources ratios at 15.6 per cent (Tier 1 ratio of 14.5 per cent and CET 1 ratio of 13 per cent) and 89.6 per cent respectively.