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National Bank of Fujairah posts net profit of Dh75.4m

National Bank of Fujairah (NBF) has announced a net profit of Dh75.4 million for the three month period ended March 31, 2020, up 85.9 per cent compared to Q4 2019 and down 55 per cent compared to Dh167.6 million in the corresponding period of 2019, despite the continuing subdued business activity in the market exacerbated by Covid-19.
NBF recorded an operating profit growth of 3.7 per cent quarter-on-quarter and 2.9 per cent year-on-year reaching Dh293.3 million enabling the bank to secure prudent impairment provisions in the face of the unprecedented operating environment. Operating income at Dh417.5 million showed marginal growth of 0.5 per cent compared to the corresponding period of 2019.
This was driven by a high level of resilience in the bank's core business and enhanced balance sheet management seeking to mitigate the impacts of the current volatile markets.
Net interest income and net income from Islamic financing and investment activities and net fees, commission and other income stood at Dh276.3 million and Dh89.3 million respectively compared to Dh280.4 million and Dh90.5 million in the corresponding period of 2019. Foreign exchange and derivatives income reached Dh37.0 million compared to Dh39.9 million in the corresponding period of 2019. Income from investments and Islamic instruments was Dh14.9 million compared to Dh4.6 million in the corresponding period of 2019.
"Q1 2020 saw an unprecedented change to the world economy with recessionary trends building rapidly across the globe, oil prices reaching exceptionally low levels and massive government support programmes being rolled out, as global economies remain on lock-down due to the Covid-19 pandemic," said deputy chairman, Dr Raja Al Gurg. "NBF's business strategy takes into consideration the challenging operating environment and is being prudently managed with a focus on long term sustainability. The bank has built solid levels of liquidity and capital adequacy which coupled with its operating performance places NBF in a very strong position to weather the current uncertainties."
"In line with the UAE government measures and Central Bank's Targeted Economic Support Scheme (TESS) to minimise the impact of COVID-19 to businesses and individuals, NBF has been assisting and providing relief to its eligible customers," Al Gurg added. "The board is confident that NBF will navigate through these difficult times by continuing to operate and engage with its stakeholders transparently and in a supportive and prudent manner protecting their interest and achieving long-term sustainable results."
business@khaleejtimes.com