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UAE’s NBF logs AED 357m profit in H1

UAE’s NBF logs AED 357m profit in H1
NBF achieved an AED 567 million in operating profit for H1-19
NBF
NBF
-0.19% 5.29 -0.01

Abu Dhabi – Mubasher: National Bank of Fujairah (NBF), listed on the Abu Dhabi Securities Exchange (ADX), reported a 15.1% year-on-year growth in its net profit for the first half of 2019, recording AED 357.1 million.

NBF has achieved an AED 567 million in operating profit in the six-month period ended 30 June 2019, up 9.1% from AED 519.9 million in H1-18, according to a press release.

Operating income increased by 9.5% year-on-year in H1-19 to AED 841.5 million, backed by an increase in core business volumes, proactive asset and liability management, and effective pricing strategies.

The bank’s net interest income and net income from Islamic financing and investment activities rose by 7.3% in H1-19 as compared to the year-ago period, while net fees and commission income grew by 13.8%, the release added.

“Income from investments and Islamic instruments marked a significant bounce back; fair value gain on fair value through profit or loss (FVTPL) and fair value through other comprehensive income (FVOCI) investment portfolio improved by AED 50.3 million during the six month period ended 30 June 2019,” NBF said.

Moreover, foreign exchange and derivatives income marked a 6% increase during the first six months of 2019, reaching AED 74.2 million as compared to AED 70 million in 2018.

“Strong capital adequacy and lending to stable resources ratios were maintained at 15.6% (Tier 1 ratio of 14.5% and CET 1 ratio of 13.0%) and 89.6% respectively, well ahead of CBUAE minimum requirements,” the lender indicated.

The ADX-listed lender’s loans and advances and Islamic financing receivables grew by 6.6% at the end of June 2019 to AED 27.9 billion from AED 26.2 billion as at the end of 2018.

Furthermore, customer deposits and Islamic customer deposits increased by 1.7% to AED 31 billion in H1-19, versus AED 30.5 billion at the end of 2018.

The bank’s assets stood at AED 42.5 billion as at end of June 2019, up 6.9% from AED 39.8 billion as at 31 December 2018.

Meanwhile, shareholders’ equity was at AED 5.4 billion as at end of June 2019, up 5.1% from AED 5.1 billion at the end of 2018.

In the first quarter of 2019, posted an AED 167.6 million in profits, up 15.3% year-on-year from AED 145.4 million.