NBF nine-month profit surges 36.4% as business improves

Dubai - The bank said net profit was substantially higher by 1,063.3 per cent for the three-month period ended September 30, 2021 compared to the corresponding period of 2020



The bank posted an operating profit of Dh243.4 million in the third quarter of 2021, a rise of 30.9 per cent quarter-on-quarter basis. — Supplied photo
The bank posted an operating profit of Dh243.4 million in the third quarter of 2021, a rise of 30.9 per cent quarter-on-quarter basis. — Supplied photo
by

Muzaffar Rizvi

Published: Mon 25 Oct 2021, 6:19 PM

Last updated: Mon 25 Oct 2021, 6:27 PM

National Bank of Fujairah (NBF) on Monday said its nine-month profit surged 36.4 per cent to Dh90.4 million due to improving underlying business momentum and good progress across the bank’s digitalisation programme.

In a statement, the bank said net profit was substantially higher by 1,063.3 per cent for the three-month period ended September 30, 2021 compared to the corresponding period of 2020.

The bank posted an operating profit of Dh243.4 million in the third quarter of 2021, a rise of 30.9 per cent quarter-on-quarter basis, and an increase of 5.4 per cent for the nine-month period compared to 2020 reaching Dh745.4 million. This reflects a high level of resilience in the bank’s core business and enhanced balance sheet management in the prevailing low interest rate environment.

“We are pleased with these encouraging set of results that demonstrate the return of growth across our operating and net performance and marked development in the implementation of our business and operational strategy. These results are after absorbing the substantial negative impact from a few exceptional exposures and COVID-19 pandemic relatively early to achieve augmented recovery in the economic cycle,”

Dr Raja Al Gurg, deputy chairperson of NBF, said.

Although the pandemic has posed many challenges and caused considerable volatility, she said the prospects for an economic recovery are firmer now and the UAE’s economy has proven to be resilient in the face of adversity. Likewise, NBF’s resilient performance underpins its capability to steer through the changing operating landscape with a staunch business focus. Further, the Group retains strong capital adequacy and is well placed to support business growth and pace up shareholder value.

“Looking ahead, the group will continue to tap new business opportunities keeping in view UAE’s economic recovery has begun to gain momentum, underpinned by its early and strong response to the Covid-19 pandemic, continued supportive macroeconomic policies, successful vaccination drive, significant non-oil activity, increased tourism, revival of production and trade world-wide and activity related to Expo 2020,” she said.

The bank’s operating income growth of 17.5 per cent and 2.1 per cent was recorded for the three-month and nine-month period ended September 30, 2021, respectively over the corresponding periods of 2020. It stood at Dh1.08 billion for the nine-month period in 2021 compared to Dh1.06 billion in the corresponding period of 2020, recuperating from the mass disruptions caused by the Covid-19 pandemic globally.

Net interest income and net income from Islamic financing and investment activities grew 14.3 per cent in the three-month period. It rose to Dh709.3 million for the nine-month period in 2021 compared to Dh722.1 million in the corresponding period of 2020.

Net fees, commission and other income rose 13.2 per cent to Dh251.8 million for the nine-month period in2021 compared to Dh222.3 million in the corresponding period of 2020. It was up 30.3 per cent for the three-month period ended September 30, 2021 compared to the corresponding period of 2020.

The bank operating expenses reduced by 4.4 per cent to Dh339.3 million compared to Dh354.8 million in the corresponding period of 2020.

Moreover, NBF maintained its policy of prudent and transparent recognition of problem accounts and secured net impairment provisions of Dh654.9 million for the nine-month period ended September 30, 2021 compared to Dh641.0 million in the corresponding period of 2020. During the period, the bank’s impairment reserve reduced to Dh258.7 million compared to Dh283.5 million as at December 31, 2020.

Loans and advances and Islamic financing receivables rose by 2.4 per cent to reach Dh25.43 billion compared to Dh24.84 billion at 2020 year-end; and up 0.2 per cent compared to Dh25.37 billion as at September 30, 2020.

Investments and Islamic instruments stood at Dh4.6 billion compared to Dh5.2 billion at 2020 year-end evidencing the deployment of a portion of excess liquidity towards the high-quality investment book to protect shareholder value. Customer deposits and Islamic customer deposits stood at Dh29.5 billion compared to Dh29.8 billion at 2020 year-end and Dh31.2 billion as at September 30, 2020.

—muzaffarrizvi@khaleejtimes.com


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