Noor Bank, one of the leading Shari’a-compliant banks in UAE, posted a net profit of AED451 million for the nine months ended September 30, 2015, an increase of 43% from the same period last year.
The results were announced following a board meeting that was attended by His Highness Sheikh Ahmed Bin Mohammed Bin Rashid Al Maktoum, Chairman, Noor Bank as well as Board Members Mr. Sultan Ahmed bin Sulayem, Mr. Essa Kazim, Mr. Soud Ba’alawy and Mr. Hussain Al Qemzi.
Earnings were bolstered by a 41% increase in net income from Islamic financing and a 44% jump in net fees and other income generated across all business segments. The bank witnessed a significant growth in balance sheet with total assets increasing by 34% to AED 38.9 billion compared with AED 29.0 billion at the end of 2014, whilst customer financing increased by AED 5.5 billion during the first 9 months. While recording a growth in customer financing, the Bank has not only been able to maintain one of the lowest advances to deposits ratio of 76% across UAE banking sector but has also successfully reduced impaired financing ratio to 4.7% with a coverage ratio of 109%.
Hussain Al Qemzi, CEO of Noor Bank said: “I am very pleased that the Bank has consistently been able to deliver strong financial results through well-diversified growth across all of our key operating business segments while maintaining focus on asset quality and robust liquidity position.”
Customer deposits remain to be Noor Bank’s primary source of funding which witnessed an increase of 29% to AED 30.8 billion during the first 9 months. The Bank successfully issued its inaugural $500 million five-year Sukuk during this year in order to achieve diversification of funding mix and improve its liability maturity profile. The Bank’s return on equity increased to 18.0% compared to 16.2% same period last year whereas capital adequacy ratio stands at 15.0% as of September 30, 2015, depicting strong capitalization with the ratio being well above regulatory levels.
During the year the Bank’s long term credit rating of A- was reaffirmed with stable outlook by Fitch.