National Bank of Fujairah operating profit for nine months of 2012 grew 17.0%

Results were driven by strong core business performance and effective asset and liability management.

Net profit was Dhs218.1m compared to Dhs200.9m in the corresponding period of 2011.

Loan loss provision was Dhs123.3m compared to Dhs91.0m in the corresponding period of 2011. NPL ratio improved from 10.9% at year end to 8.4%.

Operating income grew by 13.3% and exchange income, including derivatives income, saw a growth of 17.0%.

Operating expenses increased by 7.6%, which reflected ongoing investment in new initiatives and operating platforms to enhance NBF's customer service experience. Cost-to-income ratio was improved to 37.2% compared to 39.1% in the corresponding period of 2011.

Strong capital adequacy and advances-to-deposits ratios were maintained at 19.7% and 85.5% respectively, well ahead of Central Bank minimum requirements.

Total assets of Dhs16.1bn were up 7.7% from Dhs14.9bn at year end, up 13.9% from 30 September 2011.

Loans and advances of Dhs11.6bn were up 10.2% from Dhs10.5bn at year end, up 15.3% from 30 September 2011.

Deposits of Dhs11.2bn were up 8.5% from Dhs10.3bn at year end, up 20.9% from 30 September 2011.

H.E. Sir Easa Saleh Al Gurg, KCVO, CBE Deputy Chairman, said, "We are pleased to see the continuation of the Bank's strong operating performance despite the relatively low economic growth rates being seen generally. Our growth in operating profit, loans and advances and deposits is significantly higher than the industry average, while improvements in the cost to income and NPL ratios will augment the Bank's underlying performance."

"The Bank remains on track towards achieving broad recognition for its high quality performance, and will continue to expand its retail proposition to complement its strengths in wholesale banking and trade finance. Similarly we continue to invest in the community and our people as part of our commitment to the country's future," he added.