NBF Q2 earnings drop 5%

ABU DHABI — National Bank of Fujairah, or NBF, earnings fell 4.8 per cent to Dh71.004 million in the quarter ended June 30.

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Published: Thu 26 Jul 2012, 11:07 PM

Last updated: Tue 7 Apr 2015, 2:39 PM

However, the profits surged 7.9 per cent to Dh135.4 million in the first half of the year.

Net interest income rose 15.98 per cent to Dh116.40 million in the quarter ended June 30, 2012 against Dh100.359 million in the same period last year.

Net operating income was higher at Dh137 million in the April-June period comparing with Dh134.707 million in the same period a year ago.“Results were driven by strong core business performance and effective asset and liability management,” NBF said in a regulatory statement to Abu Dhabi Securities Exchange. In the first half of the year, “operating income surged 17.5 per cent and exchange income, including derivative income, saw a growth of 23.1 per cent,” the statement said. Loans and advances grew strongly by 9.5 per cent to Dh11.5 billion in the first six months, while customer deposits showed a strong growth of 22.5 per cent year-on-year reaching Dh11.3 billion. Total assets of NBF expanded 6.4 per cent to Dh15.9 billion as at June 30, 2012 from Dh14.9 billion at year end. Loan loss provision was Dh83.6 million compared to Dh62.5 million in the corresponding period of 2011. In the six month period, operating expenses increased substantially by 16 per cent, which “reflected ongoing investment in new initiatives and operating platforms to enhance NBF’s customer service experience,” the statements said.

Cost-to-income ratio was maintained at 38.3 per cent compared to 38.4 per cent in the corresponding period of 2011, the NBF statement said. Strong capital adequacy and advances-to-deposits ratios were maintained at 20.2 per cent (Tier 1 ratio of 13.0 per cent) and 86.9 per cent respectively.haseeb@khaleejtimes.com

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