NBF Q1 net profit jumps 43.7% reaching Dh60.4m

Supplied photo
Supplied photo

Customer deposits and Islamic customer deposits stood at Dh32.17 billion compared to Dh32.20 billion at 2021 year-end, up by 13.6 per cent from 31 March 2021.



by

A Staff Reporter

Published: Tue 26 Apr 2022, 7:31 PM

Last updated: Tue 26 Apr 2022, 7:34 PM

The UAE has moved steadily forward and the economic outlook is revealing positive signs of sustained recovery despite the evolving global landscape being dominated by significant geopolitical tensions, volatility and turbulence, said Dr Raja Easa Al Gurg, deputy chairperson of National Bank of Fujairah (NBF) on Tuesday as the bank posted its first quarter results.

The bank recorded year on year growth of 43.7 per cent to close the three month period at a net profit of Dh60.4 million compared to Dh42.0 million in the corresponding period of 2021 and up 143.3 per cent compared to Q4 2021 due to strong capital adequacy, healthy liquidity and improvement in asset quality enhancing shareholder value.

Dr Al Gurg said: “We are pleased to see an encouraging start to 2022 with a promising set of results for the first quarter aided by the economic recovery from the pandemic. This was accomplished thanks to robust quality business growth and improvement in asset quality in line with our strategy.”

The UAE achieved 3.8 per cent GDP growth in 2021; and is expected to witness economic growth of 4.2 per cent this year despite growing inflationary pressures, according to the Central Bank of the UAE. With air travel rebounding, the real estate sector on an upward trajectory and oil prices staying high, NBF is well poised to benefit from the growth that should continue for some time.

The investments and Islamic instruments stood at Dh3.6 billion compared to Dh4.4 billion at 2021 year-end and Dh5.0 billion as at March 31, 2021.

Customer deposits and Islamic customer deposits stood at Dh32.17 billion compared to Dh32.20 billion at 2021 year-end, up by 13.6 per cent from 31 March 2021. Current and Saving Accounts (CASA) deposits increased by Dh415.0 million from 2021 year-end, a 2.7 per cent increase to Dh 15.8 billion as at March 31, 2022. CASA deposits improved to a record 49.2 per cent of total customer deposits compared to 47.9 per cent as at December 31, 2021 and 39.8 per cent as at March 31, 2021 cushioning the impact from the prevailing lower interest rates. Thetotal assets reached Dh42.6 billion compared to Dh 42.9 billion at 2021 year-end, up by 8.9 per cent from 31 March 2021.

The group’s resilient financial performance emphasises its ability to navigate the changing environment aided by its strong capital and liquidity position. Credit growth has fared well on the back of effective deployment of liquidity and the balance sheet remains well-diversified and soundly positioned. The franchise’s success in leveraging technology and its growing capabilities in digital innovation continue to take customer service to new levels – a significant strategic priority for NBF.

Supported by higher fee, exchange and investment income, NBF posted an operating profit of Dh293.2 million for the three month period, a rise of 18.2 per cent compared to Dh248.1 million in the corresponding period of 2021 and up 39.5 per cent quarter-on-quarter. This was driven by the improving underlying business momentum and enhanced balance sheet management despite the current volatile environment and recent geopolitical conditions.

Operating income reached Dh412.8 million, up 14.6 per cent compared to Dh360.2 million in the corresponding period of 2021 and up 15.5 per cent compared to Q4 2021 reflecting the progressive recovery trend and in line with the bank’s strategy of principal focus on financial stability.

Net interest income and net income from Islamic financing and investment activities, up 4.8 per cent and net fees, commission and other income, up 35.0 per cent compared to the corresponding period of 2021, reaching Dh 238.6 million and Dh 105.8 million respectively; and experienced a growth of 2.9 per cent and 14.3 per cent respectively compared to Q4 2021. — business@khaleejtimes.com


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