NBF Records AED 441.2 Million Net Profit In First Half Of 2024, Up By 46%

The National Bank of Fujairah (NBF) reported a net profit after tax of AED 441.2 million for the first half of 2024, with a corporate tax charge amounting to AED 43.8 million. This represents a year-on-year growth of 46 percent, closing the six-month period with a net profit before tax of AED 484.9 million, compared to AED 332.1 million in the same period in 2023.

In Q2 2024, NBF achieved a net profit before tax of AED 210.1 million, marking an increase of 16.7 percent over Q2 2023. This robust performance was attributed to high interest rates, improved impairment provisions, effective cost management, and favourable market conditions.

NBF's operating profit for the first half of the year was AED 845.8 million, reflecting a rise of 7.7 percent compared to AED 785.3 million in the previous year. For Q2 2024 alone, operating profit increased by 5.1 percent over Q2 2023.

Operating income reached AED 1.2 billion, up by 8.2 percent from AED 1.1 billion in the previous year.

Net interest income and net income from Islamic financing and investment activities grew by 7 percent to AED 882.5 million for the six-month period.

Net fees, commission, and other income rose by 8.9 percent to AED 229.8 million.

Foreign exchange and derivatives income increased by 14 percent to AED 90.7 million.

Operating expenses saw an increase of 9.4 percent due to investments in digitalisation and customer service enhancements.

Asset Growth and Capital Adequacy

Total assets rose by 7.6 percent to AED 55.6 billion during this period.

Loans and advances along with Islamic financing receivables increased by 5.5 percent to reach AED 29.4 billion.

Investments and Islamic instruments grew by 8.6 percent to AED 8.8 billion.

Customer deposits and Islamic deposits saw a rise of 7.8 percent, totalling AED 41.6 billion.

Impairment Provisions and Ratings

Net impairment provisions decreased significantly by 20.4 percent to AED 360.9 million.

NBF maintained a strong capital adequacy ratio (CAR) of 18.6 percent, with Tier-1 at 17.5 percent and CET-1 at 14.1 percent.

The return on average assets stood at 1.6 percent while the return on average equity was recorded at 13.3 percent.

Awards and Endorsements

The bank’s ratings were reaffirmed at Baa1 / Prime-2 for deposits and A3 for counterparty risk assessment by Moody’s, maintaining a stable outlook.

"We are pleased with the bank delivering another very strong set of results in the first half of 2024 and being honoured with a number of prestigious awards and endorsements," said Dr Raja Easa Al Gurg, Deputy Chairperson.

"NBF’s financial performance over recent quarters underscores the importance of maintaining a well-informed and strategic approach to achieving sustainable growth," added Dr Al Gurg.

"NBF will continue to support quality opportunities to enhance shareholder value, facilitated by strong capital adequacy, ample liquidity and a well-diversified balance sheet," Dr Al Gurg concluded.

With inputs from WAM