fbpx
Now Reading
National Bank of Fujairah posts net loss of Dhs475m for 2020

National Bank of Fujairah posts net loss of Dhs475m for 2020

The decline was attributed to a substantial increase in impairment provisions and lower operating profit

National Bank of Fujairah (NBF) has recorded a net loss of Dhs475.3m for 2020, marking a 186 per cent drop from Dhs552.2m in net profit recorded in 2019.

The decline was attributed to a substantial increase in impairment provisions and lower operating profit. The board of directors did not propose a distribution of dividends to shareholders this year.

Meanwhile, operating profit totalled Dhs894.6m, compared to Dhs1.1bn in 2019. Operating income stood at Dhs1.4bn down 18.9 per cent compared to Dhs1.7bn in 2019 reflecting the challenging operating and economic conditions.

Net interest income and net income from Islamic financing and investment activities and net fees, commission and other income stood at Dhs948.9m and Dhs291.7m respectively. However, foreign exchange and derivatives income reached Dhs125m compared to Dhs151.2m from a year-earlier period.

Operating expenses reduced by 12.8 per cent to Dhs491m compared to Dhs562.9m in 2019. Cost-to-income ratio stood at 35.4 per cent compared to 33 per cent in 2019 reflecting the lower operating income. Loans and advances and Islamic financing receivables totalled Dhs24.8bn compared to Dhs27.1bn at 2019 year-end.

Customer deposits and Islamic customer deposits stood at Dhs29.8bn, compared to Dhs31.9bn at 2019 year-end. Total assets equated to Dhs39.9bn, dropping from Dhs42.8bn recorded a year earlier. Meanwhile, shareholders’ equity stood at Dhs5.7bn compared to Dhs6.4bn in 2019.

“The Covid-19 pandemic had an unprecedented impact on the world economy; contraction of business activities, exceptional government intervention through increased borrowing, oil price decline, geopolitical risks, trade tensions, rising cost of risk, increased joblessness and low investor and customer confidence,” said Sheikh Saleh Bin Mohamed Bin Hamad Al Sharqi, chairman of NBF.

“The bank’s continued investment in digitalisation and innovation will ensure that the bank continues to deliver differentiated customer service and cost efficiency and at the same time create new sources of business development for future growth.”

Dr Raja Al Gurg, deputy chairperson, added: “Whilst our 2020 results are very disappointing in terms of profitability, they highlight the group’s financial strength and ability to withstand a truly exceptional shock to the economic system, underpinned by its strong capital base and the unwavering support of our principal shareholders.

“We are further re-organising to strengthen our credit risk management processes and core business focus, more efficiently leveraging our competitive strengths and continue to look to drive efficiencies.”

You might also like

© 2020 MOTIVATE MEDIA GROUP. ALL RIGHTS RESERVED.

Scroll To Top