Noor Bank 2018 profit jumps 62%

Noor Bank, a Shariah-compliant bank in the UAE, on Wednesday said its 2018 net profit jumped 62 per cent to Dh601 million as compared to Dh371 million in the previous year on the back of strong growth in its core business and impairment charges.
A press statement issued by the Dubai-headquartered bank said that it posted net profit of Dh676 million prior to adjustments for property revaluations, amounting to a 74 per cent improvement in underlying performance.
Its total assets increased by 19 per cent to Dh50.7 billion, becoming the 10th largest bank in the UAE in terms of asset size. The gross financing witnessed a 17 per cent boost to reach Dh34.3 billion last year, it said in a statement.
Customer deposits surged by 17 per cent to Dh35.4 billion, boosting the bank's liquidity. Its capital adequacy ratio as of 31 December 2018 was 16 per cent.
The Shariah-compliant lender said that its net impairment charges fell from Dh838 million in 2017 to Dh613.88 million. While total operating expenses also fell slightly from Dh731.7 million to Dh726.5 million.
Noor Bank has entered into a joint venture with Etisalat to incorporate Digital Financial Services wherein the bank has invested in equity shares of Dh25 million. This venture will offer digital wallet solutions and will be operational in 2019.

Outlook for 2019
Sheikh Ahmed bin Mohammed bin Rashid Al Maktoum, Chairman, Noor Bank, said the outlook for the UAE economy in 2019 remains positive with relatively stable oil prices, an increase in planned government spending improved liquidity, better asset yield due to rising profit rates, and the ongoing recovery in financing quality, suggest improved profitability for the UAE banking sector.
"The unique position of the nation's economy and banking sector - without a doubt - gives us exceptional flexibility in dealing with ongoing global challenges, such as the persistence of global trade tensions, potential fluctuations in oil prices, tight monetary policies, and the potential for a slowdown in global GDP growth," Sheikh Ahmed said.
"We are cautiously optimistic in terms of our 2019 plans as we look to take advantage of opportunities that emerge from a stable UAE economic outlook, while being confident that our financial strength will help us navigate through the challenges that any global and regional headwinds may pose to our business," said John Iossifidis, CEO of Noor Bank.
"We attribute the underlying profit growth to the impressive performance of our core businesses, in addition to well-managed costs and lower impairment charges. Our total operating income exceeded Dh2 billion - three per cent higher than the previous year. Riding on lower operating costs, the bank witnessed an improved cost-income ratio of 36 per cent," he said. - waheedabbas@khaleejtimes.com