Noor Bank today announced its financial results for the year ending 31 December 2015, with the bank reporting a net operating profit of AED561 million. The increase in profitability was fuelled by a 73% surge in fee and commission income and supported by a 35% rise in net income from financing.
Noor Bank witnessed another successful year continuing its growth momentum with total assets increasing from AED29 billion in 2014 to AED39 billion in 2015, a 36% increase. Customer deposits also jumped 35% to AED32.1 billion, whereas customer financing grew by 29% during 2015.
Noor Bank has been able to enhance its asset quality bringing down the impaired financing ratio to 4.7% in 2015 from 7.3% the previous year. This has been achieved on the back of a targeted growth strategy, enhanced risk management capabilities and a conservative provisions position with coverage ratio at over 113% compared to 106% in 2014.
Hussain Al Qemzi, CEO, Noor Bank, said: “2015 has been another record year of strong growth and rising profitability for Noor Bank with all of our targeted business segments showing resilience to changing market conditions. Besides being one of the most liquid UAE banks for the fifth year in a row, significant focus on cross sell and diversified revenue base coupled with constant decline in cost of funding has enabled us to consistently deliver superior returns to our shareholders.”
In line with its prudent risk management and conservative liquidity management policies, Noor Bank has once again reported industry leading liquidity ratios across the UAE including liquid assets ratio at 23.3% and financing to deposit ratio of 72% compared to the UAE banking average of 100% as of 31 December, 2015.
During the year of 2015, the Bank also successfully launched its inaugural Sukuk issuance diversifying its funding mix and enhancing its deposit maturity profile. The bank’s credit rating was also affirmed by Fitch to ‘A-’ with a stable outlook for 2015/16.
Noor Bank ended the year with a rich haul of 19 industry leading awards, earning global recognition across its various business segments.