National Bank of Fujairah PSC (NBF) is pleased to announce its results for the nine month period ended 30 September 2009.
• NBF recorded net profit of AED 70.2 million compared to AED 67.0 million in the same period last year• Additional loan loss provision of AED 70.4 million made in Q3 2009 in view of deteriorated credit conditions• Portfolio loan loss provision of AED 116.6 million maintained as at 30 September 2009• Investment income of AED 40.0 million compared to loss of AED 129.7 million in the same period last year• Capital adequacy and advances to deposits ratios maintained at 18.2% (Tier 1 Ratio: 14.1%) and 81.5% respectively, well ahead of Central Bank minimum requirements• Total assets of AED 12.3 billion and total shareholders’ equity of AED 1.6 billion
Sir Easa Saleh Al Gurg, KCVO, CBE, Deputy Chairman commented: “I am pleased with the Bank’s progress amidst the global financial crisis. The Bank has been able to grow its core earnings which, coupled with the recovery of the investment portfolio, helped in absorbing credit losses and maintaining profitable operations. The Bank’s liquidity and capital adequacy ratios are stronger and the build-up in provisioning levels is enabling the bank to face uncertain credit conditions in the Gulf with confidence. The Bank will continue to focus on financial stability and will pursue selective opportunities for achieving steady growth and adding value for its shareholders.”
National Bank of Fujairah PSC (NBF) has, for the nine month period ended 30 September 2009, recorded a net profit of AED 70.2 million. In the corresponding period in 2008, NBF returned a net profit of AED 67.0 million.
The loan impairment charge for the nine months is AED 159.7 million compared to a charge of AED 69.7 million in the corresponding period in 2008. The charge includes an amount of AED 59.7 million in respect of the Bank’s exposure of AED 92 million to the Saudi Al Gosaibi and Saad Groups. The Bank continues to be proactive in providing for potential loan losses in view of uncertain conditions.
Operating income reduced to AED 367.2 million in comparison to the corresponding period in 2008 of AED 413.4 million reflecting the general slowdown in economic activity and higher cost of funds due to market conditions. The liquidity cost in the market continues to be at unprecedented levels and has had a negative impact on net interest income and profit.
In line with the Bank’s strategy, investment in funds was reduced to AED 77.8 million from AED 227.4 million as at 31 December 2008. The Bond portfolio saw some recovery and as a result, a gain on investment of AED 40.0 million was recognized through the statement of income, compared to a loss of AED 129.7 million for the corresponding period of 2008.
Total assets stood at AED 12.3 billion but down from AED 12.8 billion as at the year end. The reduction in the statement of financial position reflects subdued demand for credit in the corporate sector.