Fujairah, UAE — The National Bank of Fujairah (NBF) Wednesday posted 120.7 percent increase in first half net profit to AED332.1 million ($90.4 million) from AED150.5 million in the same period last year.
The robust performance in Q2 2023 contributed to this growth, with NBF posting a net profit of AED 180.1 million, a 99.8 percent increase from the corresponding quarter of 2022.
This growth reflects the favorable interest rate environment, improved impairment provisions, and the resilience of the bank’s core business amidst geopolitical challenges and global uncertainty, the bank said.
The bank’s operating profit for H1 2023 reached AED 785.3 million, a 28.9 percent increase from AED 609.1 million in H1 2022.
This growth was driven by higher net interest income and net income from Islamic financing and investment activities. The operating income for the six-month period ending June 30, 2023, was AED 1.1 billion, up 29.6 percent from AED 858.5 million in the same period of 2022.
Despite a slight decrease in net fees, commission, and other income, and a drop in foreign exchange and derivatives income, the bank’s net interest income and net income from Islamic financing and investment activities grew by 58.6 percent to AED 825.1 million.
Operating expenses rose by 31.4 percent, reflecting the bank’s investment in its businesses, systems, infrastructure, and people, including digital initiatives to enhance customer service. Despite the impact of rising inflation, NBF’s cost-to-income ratio remained at a moderate 29.4 percent.
NBF’s loans and advances and Islamic financing receivables rose by 5.5 percent to AED 28.4 billion, and investments and Islamic instruments increased by 3.8 percent to AED 6.6 billion. The bank’s capital adequacy ratio (CAR) stood at 18.2 percent, ensuring the bank’s ability to grow and meet potential challenges from the evolving global economy.
Dr. Raja Easa Al Gurg, Deputy Chairperson, said that the strong Q2 results affirm that the bank’s business strategies and operational priorities are on track to ensure sustainable growth.