National Bank of Fujairah reports 36.4% increase in net profit for first nine months of 2021

National Bank of Fujairah reported a net profit of Dhs90.4m for the nine month period ended September 30, 2021, an increase of 36.4 per cent over the corresponding period of 2020.

The net profit was higher by 1,063.3 per cent for the three months ending September 30, 2021 compared to a year-earlier period.

Meanwhile, the lender posted an operating profit of Dhs745.4m for the nine month period, an annual increase of 5.4 per cent. Its operating profit for the third quarter of 2021 equalled Dhs243.4m, marking a rise of 30.9 per cent quarter-on-quarter.

Operating income totaled Dhs1.08bn for Q1-Q3 of this year, recording a growth of 2.1 per cent over last year’s corresponding period. Meanwhile, net interest income and net income from Islamic financing and investment activities stood at Dhs709.3m for the first nine months, compared to Dhs722.1m during Q1-Q3 2020.

Net fees, commission and other income rose 13.2 per cent to Dhs251.8m for the first nine months of the year, compared to Dhs222.3m in the corresponding period last year. Foreign exchange and derivatives income reached Dhs82m during Q1-Q3, compared to Dhs99.1m during Q1-Q3 2020.

Operating expenses reduced by 4.4 per cent to Dhs339.3m compared to Dhs354.8m in the corresponding period of 2020.

NBF secured net impairment provisions of Dhs654.9m for the nine month period ended September 30, 2021 compared to Dhs641m in the corresponding period of 2020. Loans and advances and Islamic financing receivables rose by 2.4 per cent to reach Dhs25.43bn compared to Dhs24.84bn at 2020 year-end.

Dr Raja Al Gurg, deputy chairperson of NBF, said: “Although the pandemic has posed many challenges and caused considerable volatility, the prospects for an economic recovery are firmer now and the UAE’s economy has proven to be resilient in the face of adversity. Likewise, NBF’s resilient performance underpins its capability to steer through the changing operating landscape with a staunch business focus.

“Looking ahead, the group will continue to tap new business opportunities keeping in view UAE’s economic recovery has begun to gain momentum, underpinned by its early and strong response to the Covid-19 pandemic, continued supportive macroeconomic policies, successful vaccination drive, significant non-oil activity, increased tourism, revival of production and trade world-wide and activity related to Expo 2020.”