National Bank of Fujairah announces net profit of Dhs150.5m in H1 2022

National Bank of Fujairah (NBF)  announced H1 2022 results with a net profit of Dhs150.5m up by 97.5 per cent to close the first six month period.

The lender recorded the year-on-year growth of 97.5 per cent compared to Dhs76.2m in the corresponding period of 2021, up by 49.4 per cent quarter-on-quarter.

Dr Raja Easa Al Gurg, deputy chairperson said: “Improvement in asset quality and good business growth augur well for the second half of the year and beyond. Our strategic focus and priorities are on track to ensure we return to our long-term trend of sustainable growth. Despite the soaring energy prices, exceptionally high inflation stoking fears of imminent recession and an exponential rise in prices leading to an unprecedented lower economic growth across the world amid the continued interest rate hikes, the UAE economy has fared well.”

Today NBF posted its outstanding H1 2022 results with a net profit of AED 150.5 million up by 97.5% to close the six month period on the back of core business growth, robust capital adequacy, enhanced balance sheet management and improvement in asset quality. pic.twitter.com/3C1bTRjBBl

— National Bank Of Fujairah (@NBFUAE) July 28, 2022

“Our aim is  to continue to provide exceptional service levels through a digital enabled approach to its customers, to bring together the provision of personal help and assistance, as and when required, alongside increasing digital provision, invest in talent sustainability and innovation and uphold the highest standards of compliance and internal controls to ensure the effective execution of its business strategy,”she added.

Here are the key highlights of the H1 2022 performance: 

• • The lender posted an operating profit of Dhs609.1m for the six month period, a significant increase of 21.3  per cent compared to Dhs502.0m in the corresponding period of 2021. This was up 7.7 per cent  quarter-on-quarter and 24.4 per cent for the three month period ended 30 June over the corresponding period of 2021.
• • Operating income growth of 22.3 per cent was recorded for the three month period ended June 30 over the corresponding period of 2021; and 7.9 per cent compared to Q1 2022.
• • Operating income reached Dhs858.5m for the six month period ended June 30, up 18.5 per cent compared to Dhs724.5m in the corresponding period of 2021.
• • Net interest income and net income from Islamic financing and investment activities grew 10.9 per cent to Dhs 520.1 million for the six month period ended June 30 compared to Dhs469.1 million in the corresponding period of 2021. It was up 16.6 per cent for the three month period ended June 30 2022 compared to the corresponding period of 2021; and up 18.0 per cent compared to Q1 2022.
• • Net fees, commission and other income rose 29.0 per cent to Dhs214.5m for the six month period ended June 30 compared to Dhs166.2m in the corresponding period of 2021. It was up 23.7 per cent for the three month period ended June 30 compared to the corresponding period of 2021; and up 2.7 per cent compared to Q1 2022.
• • The lender posted record foreign exchange and derivatives income of Dhs102.5m for the six month period ended June 30 with a growth of 87.9 per cent compared to Dhs54.6m in the corresponding period of 2021.
• • Operating expenses increased by 12.1 per cent and it secured net impairment provisions of Dhs458.6m for the six month period ended June compared to Dhs425.7m in the corresponding period of 2021.
• • Loans and advances and Islamic financing receivables rose by 8.2 per cent to reach Dhs 27.7bn compared to Dhs25.6bn at 2021 year-end, up by 9.7 per cent from 30 June 2021.
• • Investments and Islamic instruments increased by 17.2 per cent from Dhs4.4bn at 2021 year-end to Dhs5.1bn as at June 30, up by 5.4 per cent from 30 June 2021.
• • The capital adequacy ratio stood at 18.3 per cent compared to 19.1 per cent at 2021 year-end. Customer deposits and Islamic customer deposits stood at Dhs31.8bn compared to Dhs32.2bn at 2021 year-end, up by 6.7 per cent from 30 June 2021.
• • Current and Saving Accounts deposits increased by Dhs509.5m from 2021 year-end, a 3.3 per cent increase to Dhs15.9bn as at June 30, 2022.