National Bank of Fujairah (NBF) recorded a 28.6 per cent rise in net profit in 2013 to Dhs393.1 million, up from Dhs305.8 million in 2012.
Last year’s profit growth marked the lender’s best full-year performance to date, it said in a statement.
The bank’s operating profit reached Dhs560.7 million, up 16.9 per cent, compared to Dhs479.5 million in 2012.
Loan loss provision fell to Dhs167.6 million, showing an improvement of 3.5 per cent from Dhs173.7 million in 2012. The non-performing loan ratio also improved to 4.6 per cent from 7.6 per cent, the bank said.
The lender’s operating income grew by 16.5 per cent while foreign exchange and derivatives income rose12.3 per cent.
Operating expenses rose by 15.7 per cent in 2013 owing to the bank’s investment in improving its businesses and services, NBF said.
Total assets amounted to Dhs21.5 billion at the end of 2013, up 22.3 per cent year-on-year.
NBF’s loans and advances reached Dhs14.3 billion, up 17.5 per cent from Dhs12.2 billion at the end of 2012.
Customer deposits touched Dhs15 billion, up 24.6 per cent from Dhs12 billion in 2012.
NBF chairman Sheikh Saleh Bin Mohamed Bin Hamad Al Sharqi said that the bank demonstrated strong resilience during the financial market crisis, which has helped it increase profits for the fourth consecutive year.
“In view of the bank’s record performance I, on behalf of the Board of Directors, am pleased to recommend an increase in dividend of 25 per cent and propose a distribution of profits, in the form of cash dividends, of 12.5 per cent (2012: 10 per cent) of paid-up capital,” he said.
The bank’s deputy chairman Easa Saleh Al Gurg, said: “With positive developments, such as the Dubai Expo and the ongoing infrastructure based investment in Abu Dhabi and Fujairah, providing momentum for the next leg of the UAE’s growth journey, NBF foresees even more positive conditions going forward.”