National Bank of Fujairah posts 155.1% rise in nine-month net profit

National Bank of Fujairah (NBF) recorded Dhs230.7m in net profit for the first nine months of the year, growing 155.1 per cent year-on-year, compared to Dhs90.4m recorded during the corresponding period of 2021.

NBF posted an operating profit of Dhs932.5m for the nine-month period, a year-on-year rise of 25.1 per cent compared to Dhs745.4m and up 2.4 per cent quarter-on-quarter, underpinned by higher net interest income and net income from Islamic financing and investment activities, fee and exchange income.

Today NBF announced its nine months results with a year-on-year growth of 155.1% net profit of AED 230.7 million compared to AED 90.4 million in the corresponding period of 2021. pic.twitter.com/pG9CUpGwMA

— National Bank Of Fujairah (@NBFUAE) October 26, 2022

Operating income totalled Dhs1.32bn for the nine month period ended September 30, 2022, up 21.7 per cent compared to Dhs1.1bn in the corresponding period of 2021. Net interest income and net income from Islamic financing and investment activities grew 20.6 per cent to Dhs855.4m for the nine month period ended September 30, compared to Dhs709.3m in the corresponding period of 2021. Net fees, commission and other income also rose 20.2 per cent year-on-year to Dhs302.7m during Q1-Q3, compared to Dhs251.8m.

NBF posted foreign exchange and derivatives income of Dhs142.5m for the first nine months of the year, growing 73.9 per cent compared to Dhs82m recorded over the previous year. Income from investments and Islamic instruments also stood at Dhs19.2m compared to Dhs41.6m.

Operating expenses increased by 14.2 per cent, reflecting NBF’s investments in businesses, systems, infrastructure and people, the lender said in a statement.

Loans and advances and Islamic financing receivables, meanwhile, rose by 7.7 per cent to reach Dhs27.6bn compared to Dhs25.6bn at 2021 year-end, up by 8.5 per cent from September 30, 2021. Investments and Islamic instruments increased by 35.3 per cent from Dhs4.4bn at 2021 year-end to total Dhs5.9bn as at September 30, 2022, and up by 29.2 per cent from September 30, 2021.

Customer deposits and Islamic customer deposits rose by 1.6 per cent to reach Dhs32.7bn compared to Dhs32.2bn at 2021 year-end.

Meanwhile, total assets rose by 3.3 per cent to reach Dhs44.4bn compared to Dhs42.9bn at 2021 year-end. Return on average assets improved to 0.7 per cent, up from 0.3 per cent for the corresponding period in 2021, while return on average equity also improved to 5.4 per cent.

Dr Raja Easa Al Gurg, deputy chairperson said: “The Group maintained a robust capital position and healthy balance sheet to confidently navigate the changing operating environment for enhanced long-term sustainable returns. Looking ahead, NBF will continue to tap new quality business opportunities keeping in view the booming oil sector which will drive the economic growth acceleration of the UAE in 2022; while a strong non-oil sector will add further impetus thanks to the government’s reforms programme.”

Also read: National Bank of Fujairah launches new account for SMEs, startups