NBF’s 2021 net profit surges 124%

Strong capital adequacy, ample liquidity and sound improvement in asset quality enabled enhanced returns and strong recovery

NBF has announced its results for the year ended December 31, 2021, achieving a net profit of Dh115.2 million for the year compared to a loss of Dh475.3 million in 2020.

This is a growth of 124.2 per cent driven by improving underlying business momentum and marked improvement in respect of impairment losses. The net profit was higher by 104.6 per cent for the three month period ended December 31, 2021 compared to the corresponding period of 2020.

Sheikh Saleh Bin Mohamed Bin Hamad Al Sharqi, chairman of the bank, said: “2021 results mark a welcome return to profitable operations on the back of robust core business growth and improvement in cost of risk in line with the group’s strategy. There has been good progress and deliveries across all our businesses, reflected through the growth in operating performance and expanding trade and operational activities.”

“Though the global outlook remains subject to downside risks and headwinds amid additional Covid-19 waves, the world is moving towards a recovery with the UAE proactively and dynamically geared towards the next fifty years of exceptional growth, digital innovation and a smart future,” he added. “The UAE government’s timely and supportive measures, macroeconomic policies and an effective vaccination drive have helped shield the economy and accelerate recovery efforts. Similarly, NBF’s resilient financial performance underscores its capability to identify and benefit from opportunities in the face of testing times and pursue a growth strategy while ensuring financial stability and management of volatility.”

Supported by higher fee and investment income and effective cost management, NBF posted an operating profit of Dh955.6 million in 2021. Operating income reached Dh1.4 billion, up 4.1 per cent over 2020 despite the challenging operating conditions impacted by the pandemic globally. The progressive trend is in line with the bank’s strategy of prime focus on financial stability and benefitting from digitally enabled services.

Foreign exchange and derivatives income reached Dh114.2 million compared to Dh125 million in 2020. Income from investments and Islamic instruments marked a significant improvement to Dh42.3 million compared to Dh20 million in 2020. Unrealised gain on fair value through other comprehensive income (FVOCI) investments stood at Dh44 million.

Dr Raja Al Gurg, deputy chairperson, said: “We are pleased with this promising set of results. NBF achieved further progress against its strategic priorities, with a record performance in its retail business and another exceptional performance by business banking. We continue to work towards a digitally enabled and customer focused franchise to improve market share and leverage technologies in key focus areas where it can add real value to the customer experience.”

He added: “Supported by its strong capital base and the resolute backing of its principal shareholders, we are confident that NBF will continue on its growth trajectory through the cautious management of risks and the improving market opportunities expected in 2022 and beyond. Significant investment in risk and compliance will continue to enhance our governance and control procedures in line with the evolving threats and the new regulations and evolving technology.”

business@khaleejtimes.com