National Bank of Fujairah PSC (NBF) 2010 Half Year Profit up 36.7%

Results are underpinned by strong growth in core business and reflects prudent provisioning policy

National Bank of Fujairah PSC (NBF) is pleased to announce its results for the half year ended 30 June 2010.

Highlights:

• NBF recorded net profit of AED 83.0m compared to AED 60.7m in 2009
• Loan loss provision of AED 97.1 million made compared to AED 89.3 in 2009
• Operating income grew by 16.1% and operating costs reduced by 16.3%
• Investment income of AED 3.9m compared to AED 32.3m in 2009
• Cost to income ratio improved from 50.9% in 2009 to 36.7%
• Strong capital adequacy and advances to deposits ratios maintained at 22.38% (Tier 1 Ratio of 14.1%) and 79.1% well ahead of Central Bank minimum requirements
• Total assets of AED 12.5 billion and total shareholders’ equity of AED 1.8 billion

H.E. Sir Easa Saleh Al Gurg, KCVO, CBE,Deputy Chairman commented:

“Our strategy of enhanced focus on sustained core business growth in the UAE and financial stability has contributed to the Bank’s solid half year profit growth of 36.7%. The Bank’s results are driven by core business from all emirates across the UAE. The Bank will continue to leverage its strong liquidity and capital adequacy position and prudent provisioning levels to grow good quality business.”

National Bank of Fujairah PSC (NBF) has, for the first six months of 2010, recorded a profit of AED 83.0 million compared to a profit of AED 60.7 million in the corresponding period of 2009.

Operating income increased to AED 278.5 million from AED 239.9 million in the corresponding period of 2009 showing a growth of 16.1% despite the impact of unprecedented higher liquidity cost.

Net interest income of AED 175.1 million registered a growth of 13.5% over 2009 net interest income of AED 154.3 million. Non-interest income of AED 103.5 million is 20.8% higher than 2009 of AED 85.6 million. Exchange income, including derivative income, at AED 21.1m saw a growth of 15.0%.

In line with the Bank’s strategy, the investment in funds was reduced to AED 42.3 million from AED 56.6 million as at 31 December 2009. A gain on investment of AED 3.9 million was recognized through the statement of income, compared to AED 32.3 million for the corresponding period of 2009.

Operating expenses of AED 102.3 million are 16.3% lower than 2009 operating expenses of AED 122.2 million. Cost to income ratio improved to 36.7% as compared to 50.9% in 2009.

Total assets grew to AED 12.5 billion from AED 11.9 billion at the end of 2009.

About National Bank of Fujairah PSC:

Incorporated in 1982, National Bank of Fujairah PSC (NBF) is a full services corporate bank with strong wholesale banking and trade finance expertise. Leveraging its deep banking experience and market insight within Fujairah and the UAE, NBF is well-positioned to build lasting relationships with its clients and help them achieve their business goals.

NBF’s key shareholders include the Government of Fujairah, the Government of Dubai and business pioneer and community leader H.E. Sir Easa Saleh Al Gurg. It is listed on the Abu Dhabi Securities Exchange under the symbol “NBF” and has a branch network of 12 across the UAE.

For further information, please contact:
Karl Ho, Snr. Corporate Communications Manager
Ho.yen@nbf.ae 
04 5078351 / 056 144 0336 

Abda Fayyaz, Corporate Communications Officer            
Abda.fayyaz@nbf.ae
04 5078 439 / 050 944 5353