Noor Bank profit up 26% on diversifed growth in H1

Dubai - The bank's total assets grew 28 per cent to Dh37.3 billion, compared with Dh29.0 billion at the start of the year.

Noor Bank reported record net profits of Dh272 million for the first six months, ending June 30, 2015, up 26 per cent from the same period last year.
During H1 of 2015, Noor Bank successfully closed its inaugural $500 million five-year sukuk that was oversubscribed by more than 4.3 times mainly from investors in Europe and Asia. At 2.788 per cent, the bank achieved one of the lowest ever prices paid out by any sukuk issuer in the UAE. The sukuk will enable Noor Bank to diversify its funding portfolio as part of its ongoing financial strategy and help create a sustainable funding and capital structure.
The bank's total assets grew 28 per cent to Dh37.3 billion, compared with Dh29.0 billion at the start of the year. Meanwhile, the return on equity stood at 16.8 per cent. Despite 21 per cent growth in its financing book, the bank has been able to reduce its impairment financing ratio to 5.1 per cent, with the coverage ratio increasing to 109 per cent.
Hussain Al Qemzi, CEO, Noor Bank, said: "In H1, 2015, Noor Bank's assets crossed the $10 billion mark for the first time. With asset and deposit growth of 28 per cent and 24 per cent respectively since December 2014, as well as a 26 per cent growth in its bottom line, Noor Bank has emerged one of the fastest growing banks in the region through recording industry leading growth and profitability metrics amongst its peers in the banking space. We have continued to deliver strong financial results that can be attributed to a well-diversified growth across all of our targeted businesses in a highly competitive market."
In H1 2015, Noor Bank's consumer finance base grew by 18 per cent - faster than the market growth rate in similar product categories, namely cards, personal finance and auto financing, a testament to the fact that consumers in the UAE are seeing value in the Noor Bank's product offerings.
- business@khaleejtimes.com