National Bank of Fujairah reports 44.3% year-on-year dip in Q1 net profit

National Bank of Fujairah (NBF) has recorded a net profit of Dhs42m for the three months ended March 31, 2021, down 44.3 per cent compared to Dhs75.4m during a year earlier period, and up 107.8 per cent compared to Q4 2020.

NBF achieved an operating profit of Dhs248.1m for the three month period with a growth of 32.5 per cent quarter-on-quarter. Meanwhile, the bank’s operating income stood at Dhs360.2m, up 11.4 per cent compared to Q4 2020 and down 13.7 per cent compared to Dhs417.5m in the corresponding period of 2020.

Its net interest income and net income from Islamic financing and investment activities, went up 0.3 per cent and net fees, commission and other income, rose 12.9 per cent compared to Q4 2020, standing at Dhs227.6m and Dhs78.4m respectively.

Income from investments and Islamic instruments improved to Dhs23.4m during the three month period ended March 31, 2021, compared to the corresponding period of 2020 and Q4 2020.

NBF secured net impairment provisions of Dhs206.1m for the first quarter, down 5.4 per cent compared to Dhs217.9m in the corresponding period of 2020. Loans and advances and Islamic financing receivables rose marginally by 0.7 per cent to reach Dhs25bn compared to Dhs24.8bn at 2020 year-end and Dhs27.2bn as at March 31, 2020.

Customer deposits and Islamic customer deposits stood at Dhs28.3bn compared to Dhs29.8bn at 2020 year-end and Dhs32bn as at March 31, 2020. Meanwhile, its total assets reached Dhs39.1bn compared to Dhs39.9bn at 2020 year-end and Dhs43.3bn as at March 31, 2020. Shareholders’ equity stood at the 2020 year-end level of Dhs5.7bn compared to Dhs6.2bn as at March 31, 2020.

Dr Raja Al Gurg, deputy chairperson said: “Q1 2021 results underscore NBF’s operational and financial resilience in one of the most challenging economic environments we have ever seen with the Covid-19 pandemic continuing to have a profound impact globally. Given the evolving external environment, the group will continue with its renewed strategies to adapt and pursue quality diversified opportunities coupled with proactive asset and liability management to achieve sustainable growth and add value for its shareholders.”