National Bank of Umm Al Quwain net profit surges 54% reaching Dh255 million

National Bank of Umm Al Quwain (NBQ) reported a net profit of Dh255 million in Q2 of 2023, reflecting a 54 per cent increase compared to Dh165 million in Q2 of 2022. Cost-to-income ratio is 20.58 per cent, reflecting a 880 basis point year-on-year improvement, indicating the bank’s operational efficiencies and disciplined cost management.

The bank’s impairment coverage ratio, including collateral, improved to 254 per cent as of June 30, 2023, from 183 per cent as of December end. Total assets of the group reached Dh14.06 billion as of June 30, 2023, reflecting a 3 per cent increase compared to Dec 2022. Bank maintained deposits to net advances ratio prudently at 129 per cent.

Capital adequacy ratio is 46 per cent as of June 30, 2023, which is well over the minimum threshold stipulated by Central Bank of the UAE in accordance with Basel III guidelines. This indicates the bank’s strong capital position and provides opportunities to leverage. Common equity tier I ratio is maintained strongly at 44.86 per cent. Eligible Liquid Assets Ratio is 32.64 per cent as of June 30, 2023, and lending to stable resource ratio as of June 30, 2023 is 59.35 per cent.

The bank’s non-performing ratio improved from 7.80 per cent at December 2022 end to 9.46 per cent which, indicates the bank’s focus on maintaining high-quality assets and prudent lending practices.

International credit rating agencies , Moodys and Capital Intelligence, has affirmed the banks financial ratings as Stable. Moody’s has assigned National Bank of Umm Al Quwain (NBQ) a deposit rating of Baa2 with a BCA (baseline credit assessment) of ba2.rns.