National Bank of Fujairah posts 43.7% rise in net profit for Q1 2022
Now Reading
National Bank of Fujairah posts 43.7% rise in net profit for Q1 2022

National Bank of Fujairah posts 43.7% rise in net profit for Q1 2022

The bank’s operating income for Q1 2022 reached Dhs412.8m, up 14.6 per cent compared to compared to Dhs360.2m recorded during a year-earlier period

National Bank of Fujairah

National Bank of Fujairah (NBF) has recorded a 43.7 per cent year-on-year increase in net profit, equalling Dhs60.4m, for the first three months ending March 31, 2022.

Its Q1 2022 net profit went up 143.3 per cent compared to Q4 2021.

NBF also posted an operating profit of Dhs293.2m for the three-month period, a rise of 18.2 per cent compared to Dhs248.1m in the corresponding period of 2021 and up 39.5 per cent quarter-on-quarter.

Operating income also rose to Dhs412.8m, up 14.6 per cent compared to Dhs360.2m recorded in an year-earlier period and up 15.5 per cent compared to Q4 2021. Meanwhile, its net interest income and net income from Islamic financing and investment activities, went up 4.8 per cent and net fees, commission and other income, rose 35 per cent compared to the corresponding period of 2021, reaching Dhs238.6m and Dhs105.8m, respectively.

Foreign exchange and derivatives income surged 52.3 per cent, scaling to Dhs47.1m compared to Dhs30.9m in the corresponding period of 2021 and up 46 per cent compared to Q4 of last year. Meanwhile, income from investments and Islamic instruments stood at Dhs21.4m compared to Dhs23.4m in the corresponding period of 2021.

Operating expenses also increased by 6.6 per cent, reflecting the bank’s investments in businesses, systems and infrastructure, a statement said. Cost-to-income ratio also improved 29 per cent compared to 31.1 per cent in the corresponding period of 2021.

Meanwhile, the bank secured its net impairment provisions of Dhs232.9m for the three month period ended March 31, 2022, compared to Dhs206.1m in the corresponding period of 2021. Its NPL ratio improved to 9.1 per cent compared to 9.8 per cent as at December 31, 2021.

The capital adequacy ratio also stood at 18.7 per cent (Tier 1 ratio of 17.5 per cent and CET 1 ratio of 13.5 per cent) compared to 19.1 per cent (Tier 1 ratio of 18 per cent and CET 1 ratio of 13.8 per cent) at 2021 year-end.

Loans and advances and Islamic financing receivables rose by 6.2 per cent to reach Dhs27.2bn compared to Dhs25.6bn at 2021 year-end. Customer deposits and Islamic customer deposits also stood at Dhs32.17bn compared to Dhs32.2bn at 2021 year-end, up by 13.6 per cent from March 31, 2021.

Current and Saving Accounts (CASA) deposits increased by Dhs415m from 2021 year-end, a 2.7 per cent increase to Dhs15.8bn as at March 31, 2022. Total assets reached Dhs42.6bn compared to Dhs42.9bn at 2021 year-end, while return on average assets improved to 0.6 per cent, up from 0.4 per cent for the corresponding period in 2021.

Return on average equity also improved to 4.2 per cent, up from 3 per cent during the corresponding period in 2021.

Dr. Raja Easa Al Gurg, deputy chairperson, said: “Despite the evolving global landscape being dominated by significant geopolitical tensions, volatility and turbulence, the UAE has moved steadily forward, and the economic outlook is revealing positive signs of sustained recovery. The UAE achieved 3.8 per cent GDP growth in 2021; and is expected to witness economic growth of 4.2 per cent this year despite growing inflationary pressures, according to the Central Bank of the UAE. With air travel rebounding, the real estate sector on an upward trajectory and oil prices staying high, NBF is well poised to benefit from the growth that should continue for some time.”

Earlier this year, NBF announced the launch of the NBF Lite Bank Account for startups and small-and-medium-enterprises (SMEs) operating in the country.

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

You might also like

© 2021 MOTIVATE MEDIA GROUP. ALL RIGHTS RESERVED.

Scroll To Top