National Bank of Fujairah 2011 profit surges 64.4% to AED 280.9 million

National Bank of Fujairah PSC (NBF) is pleased to announce its results for the year ended 31 December 2011 which are being submitted for Central Bank’s approval.

Highlights:

NBF recorded a net profit of AED 280.9 million compared to AED 170.9 million in 2010.

Results were driven by strong core business performance, effective asset and liability management and reduction in loan loss provision.

Loan loss provision was AED 113.3 million compared to AED 205.0 million in 2010.

Operating income grew by 14.1% from AED 568.0 million in 2010 to AED 648.3 million in 2011.

Exchange income, including derivative income, saw a growth of 18.1% to a record high of AED 50.0 million.

Cost-to-income ratio of 39.4% (2010: 35.6%) reflects investment in new growth initiatives.

Strong capital adequacy and advances-to-deposits ratios were maintained at  20.3% (Tier 1 ratio of 12.8%) and 84.8% respectively, well ahead of Central Bank minimum requirements.

Total assets of AED 14.9 billion were up 15.5% from AED 12.9 billion at year end.

Total loans and advances of AED 10.5 billion were up 20.5% from AED 8.7 billion at year end.

Return on average assets was 2.0% compared to 1.4% in 2010.

Return on average equity was 14.4% compared to 9.7% in 2010.

Cash dividends of 10.0% of paid-up capital has been recommended.

H.H. Sheikh Saleh Bin Mohammed Al Sharqi, Chairman said:

“The Bank’s resilient performance is a resounding endorsement of its well-balanced growth strategy. Despite the prevailing market, the Bank has managed to grow core earnings which, coupled with a sharper focus on balance sheet management and reduction in credit losses, helped produce one of the strongest sets of results in its operating history.

The Board of Directors, management and staff can rightly feel proud of these results. I, on behalf of the Board of Directors, am therefore pleased to recommend a distribution of profits in the form of cash dividends of 10% of the paid-up capital.”

H.E. Sir Easa Saleh Al Gurg, KCVO, CBE Deputy Chairman commented:

“We are pleased to witness the sustained improvement of the Bank’s operating performance. Backed by prudent policies and strong liquidity and capital positions, the Bank was able to grow its operating profit to a record high of AED 394.3 million and loan book by 20.5%, which is significantly greater than the industry average.

NBF is committed to the growth of Fujairah and the UAE. Despite the wider global challenges, good opportunities still exist and we will continue to leverage them for the continued success of the Bank and the future of the UAE.”