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NBF posts net profit growth of 17%

National Bank of Fujairah (NBF) has announced a net profit of Dh76.2 million for the six month period ended June 30, 2021, an increase of 17.1 per cent over the corresponding period of 2020, which exhibits its resilient business strategy.

The bank's net profit was up 430.8 per cent for the three month period ended June 30, 2021 compared to the corresponding period of 2020.

NBF achieved an operating profit growth of 11.3 per cent for the three month period ended June 30, 2021 over the corresponding period of 2020; and 2.3 per cent compared to Q1 2021, demonstrating the on-going recovery phase. Operating profit stood at Dh502 million for the six month period ended June 30, 2021 compared to Dh521.4 million in the corresponding period of 2020.

Dr Raja Al Gurg, deputy chairperson, said: “Our H1 2021 results exhibit the group’s resilience; marking the return to profitable growth in line with the bank’s strategy to recognise the substantial negative impact from a few exceptional exposures and Covid-19 pandemic in 2020 relatively early to achieve a recovery in asset quality this year. The current economic outlook depicts signs of a return to growth on the back of UAE government measures against the aftermath of Covid-19."

"It is reassuring that NBF is able to maintain its growth momentum and we aim to carry the same into the second half of the year and beyond adding value to all our stakeholders and the UAE economy as a whole; whilst maintaining solid capital adequacy, liquidity, a healthy deposit mix and a staunch focus on core business, exceptional customer service through segmented focus and prudent risk management standards. With the banking industry continuing to face asset quality concerns, rising cost of risk and margin pressures, NBF will cautiously adapt and pursue quality opportunities combined with proactive asset and liability management to achieve sustainable future growth," Al Gurg added.

NBF's operating income stood at Dh724.5 million for the six month period ended June 30, 2021 compared to Dh755.6 million in the corresponding period of 2020, reflecting gradual recovery from the challenging operating environment presented by the Covid-19 pandemic from Q2 2020.

Net interest income and net income from Islamic financing and investment activities grew 2.5 per cent in the three month period ended June 30, 2021 over the corresponding period of 2020; and 6.1 per cent compared to Q1 2021. Net interest income and net income from Islamic financing and investment activities stood at Dh469.1 million for the six month period ended June 30, 2021 compared to Dh511.9 million in the corresponding period of 2020.

"We are delighted to see the growing market recognition during H1 2021; where NBF bagged the most innovative emerging technology implementation award at the MEA Finance’s Banking Technology Awards 2021," Al Gurg said. "NBF will continue to invest and implement its digital strategy to make it a competitive advantage for its future growth, uphold the highest standards of compliance and internal controls commensurate with the new regulatory changes and information and cyber security requirements."

"The group will continue to support its customers and clients through relief measures or otherwise and with its progressive environment, governance and social (ESG) initiatives displaying solidarity with our communities, while protecting and enhancing the interest of our shareholders,” Al Gurg added.

business@khaleejtimes.com