Fujairah, UAE–The National Bank of Fujairah (NBF) has recorded a 195 percent jump in net profit to $93 million in 2022 as compared to $31.36 million in 2021.
Commenting on the bank’s results, Sheikh Saleh bin Mohamed bin Hamad Al Sharqi, Chairman of NBF, said, “We are pleased with the outstanding set of results achieved by NBF. Our record 2022 operating performance was testament to the robustness of our business model and operational strategy. Despite a year marked by volatile geopolitical conditions, record inflation and climate-linked disasters, we were sufficiently resilient to adapt to the emerging conditions and record strong growth.”
Moreover, NBF recorded its best ever operating income of $490 million, up 25.8 percent over 2021 reflecting the robust core business performance and asset and liability management in a rising interest rate environment.
Net interest income and net income from Islamic financing and investment activities grew 29.8 percent to $327 million compared to $256 million in 2021.
Also read: NBF declares net profit growth of 17.1% in half-year results
Income from investments and Islamic instruments stood at $5 million.
Operating expenses increased by 18.9 percent, reflecting NBF’s investments in its businesses, systems, infrastructure and people. These investments include a set of digitalisation initiatives to further enhance our focus on exceptional customer service through digital adoption and innovation.
Nevertheless, NBF’s cost-to-income ratio improved to 31.9 percent compared to 33.7 percent in 2021, after achieving further productivity improvements. This provides ample headroom to continue investing in our technological capabilities and enhancing the customer experience going forward.
Total assets rose by 10.9 percent to reach AED 47.6 billion compared to AED 42.9 billion at 2021 year-end.
Taking into account the 2022 performance, the Board of Directors proposed a distribution of profits of 6.0 percent (2021: nil) of the paid-up capital in the form of bonus shares.