Today's Edition
FUJAIRAH (WAM)
The National Bank of Fujairah (NBF) recorded net profit after tax of Dh441.2 million for the first half of 2024, with a corporate tax charge of Dh43.8 million.
According to a press statement today, Thursday, NBF recorded a year-on-year growth of 46 percent, closing the six-month period with a net profit before tax of Dh484.9 million, compared to Dh332.1 million in the corresponding period of 2023.
In Q2 2024, NBF posted a net profit before tax of Dh 210.1 million, a rise of 16.7 percent over Q2 2023. This strong performance was driven by high interest rates, improved impairment provisions, careful cost management, and buoyant market conditions.
NBF's operating profit for the six-month period was Dh845.8 million, a rise of 7.7 percent compared to Dh785.3 million in 2023, and up 5.1 percent for Q2 2024 over Q2 2023.
Operating income reached Dh1.2 billion, up 8.2 percent from Dh1.1 billion in 2023.
Key highlights include:
- Net interest income and net income from Islamic financing and investment activities grew 7.0 percent to Dh882.5 million for the six-month period.
- Net fees, commission, and other income rose 8.9 percent to Dh229.8 million.
- Foreign exchange and derivatives income grew by 14.0 percent to Dh90.7 million.
- Operating expenses increased by 9.4 percent, reflecting investments in digitalisation and customer service enhancements.
- Net impairment provisions decreased by 20.4 percent to Dh360.9 million.
- Total assets rose by 7.6 percent to Dh55.6 billion.
- Loans and advances and Islamic financing receivables rose by 5.5 percent to Dh29.4 billion.
- Investments and Islamic instruments increased by 8.6 percent to Dh8.8 billion.
- Customer deposits and Islamic deposits increased by 7.8 percent to Dh41.6 billion.
- NBF maintained a strong capital adequacy ratio (CAR) of 18.6 percent, with Tier 1 at 17.5 percent and CET 1 at 14.1 percent. The return on average assets was 1.6 percent, and the return on average equity was 13.3 percent. The bank's ratings were re-affirmed at Baa1 / Prime-2 for deposits and A3 for counterparty risk assessment by Moody’s, with a stable outlook.
Deputy Chairperso, Dr. Raja Easa Al Gurg, said, "We are pleased with the bank delivering another very strong set of results in the first half of 2024 and being honoured with a number of prestigious awards and endorsements. NBF’s financial performance over the recent quarters underscores the importance of maintaining a well-informed and strategic approach to achieving sustainable growth. NBF will continue to support the quality opportunities to enhance shareholder value, facilitated by strong capital adequacy, ample liquidity and a well-diversified balance sheet.”
