Home Banking & Finance National Bank of Fujairah 2023 net profit surged 113.0% reaching record AED...

National Bank of Fujairah 2023 net profit surged 113.0% reaching record AED 725.1 million

NBF - Fujairah Head Office

NBF announces results for the year ended 31 December 2023 in accordance with the approval received from the Central Bank of the United Arab Emirates.


  • NBF recorded year-on-year growth of 113.0% to close the year at a record net profit of AED 725.1 million compared to AED 340.4 million in 2022. This exhibits the high level of resilience in the bank’s core business, selective business growth, the high interest rate environment, effective investment portfolio and margin management, an improvement in the impairment provisions and careful management of costs. Helped by an improvement of AED 66.6 million in investments designated as fair value through other comprehensive income (FVOCI), NBF’s total comprehensive income for the year was AED 790.4 million up 223.8% compared to AED 244.1 million in 2022.
  • NBF posted its highest ever operating profit of AED 1.6 billion, a rise of 28.1% compared to AED 1.2 billion in 2022 underpinned by higher net interest income and net income from Islamic financing and investment activities and fee income.
  • NBF recorded its best ever operating income of AED 2.3 billion, up 25.8% over 2022 reflecting robust core business performance, proactive asset and liability management in a high interest rate environment, enhanced focus on return on capital and the bank’s long-standing customer centric approach. Principal comments include:
    • Net interest income and net income from Islamic financing and investment activities grew 39.6% to AED 1.7 billion compared to AED 1.2 billion in 2022.
    • Net fees, commission and other income rose 6.2% to AED 417.8 million compared to AED 393.3 million in 2022.
    • Foreign exchange and derivatives income stood at AED 164.5 million compared to AED 181.4 million in 2022.
  • Operating expenses increased by 20.9%, reflecting NBF’s investments in its businesses, systems, infrastructure and people. These investments include a set of digitalisation initiatives to further enhance our focus on exceptional customer service through digital adoption and innovation. Nevertheless, NBF’s cost-to-income ratio improved to 30.6% compared to 31.9% in 2022, remaining in the mid-industry range and reflecting on-going cost discipline. This provides headroom to continue investing in our technological capabilities and further enhancing future customer experience.
  • NBF maintained its policy of prudent and transparent recognition of problem accounts whilst taking into consideration the new credit risk standards being introduced by the Central Bank of the UAE. NBF booked net impairment provisions of AED 859.0 million for the year ended 31 December 2023 compared to AED 896.0 million in 2022, a reduction of 4.1%. The net impairment charge was after absorbing the impact of complete recycling of the bank’s impairment reserve of AED 168.2 million as at 31 December 2022. The total provision coverage ratio improved to 120.2% compared to 101.5% as at 31 December 2022. The NPL ratio improved to 4.9% compared to 6.9% as at 31 December 2022.
  • Total assets rose by 8.6% to reach AED 51.7 billion compared to AED 47.6 billion at 2022 year-end.
  • Loans and advances and Islamic financing receivables rose by 3.7% to reach AED 27.9 billion compared to AED 26.9 billion at 2022 year-end.
  • Investments and Islamic instruments increased by 28.2% to reach AED 8.1 billion compared to AED 6.3 billion at 2022 year-end; optimizing a portion of liquidity towards a high-quality investment book to augment value and return.
  • Return on average assets improved to 1.5%, up from 0.8% in 2022.
  • Customer deposits and Islamic customer deposits increased by 7.9% to reach AED 38.6 billion compared to AED 35.7 billion at 2022 year-end. Current and Saving Accounts (CASA) deposits stood at 41.2% of total customer deposits, balancing the impact of increasing rates for fixed term deposit products.
  • Ample liquidity has been maintained with lending to stable resources ratios at 67.4% (2022: 72.1%) and eligible liquid assets ratio (ELAR) at 28.3% (2022: 24.9%), well ahead of Central Bank of the UAE’s minimum requirements.
  • Return on average equity improved to 11.7%, up from 5.9% in 2022.
  • The capital adequacy ratio (CAR) stood at 19.0% (Tier 1 ratio of 17.8% and CET 1 ratio of 14.2%) compared to 18.6% (Tier 1 ratio of 17.4% and CET 1 ratio of 13.6%) at 2022 year-end and is being maintained at this level to support the bank’s ability to grow and meet any challenges that may arise from the swiftly evolving global economy.
  • Taking into account the 2023 performance, the Board of Directors proposed a distribution of profits of 15.0% (2022: 6.0%) of the paid-up capital in the form of cash dividends of 10.0% (2022: nil) and bonus shares of 5.0% (2022: 6.0%).

H.H. Sheikh Saleh Bin Mohamed Bin Hamad Al Sharqi, Chairman said:

“2023 was a record year for NBF. Despite the ongoing challenges and uncertainty presented by heightened global geopolitical risks, economic headwinds with elevated levels of inflation, and climate change, NBF was successful in producing its best ever operating and net performance. This is an excellent achievement that clearly shows the strength of the bank’s core activities and the quality of the work undertaken to recover from a difficult pandemic period.

We were honoured with a number of prestigious industry awards and endorsements throughout 2023, further underscoring NBF’s well embedded culture of exceptional service and customer partnership. The Board’s strategic focus continues to be on generating long-term sustainable returns and benefitting from the innovative opportunities that are arising from the emerging opportunities in environmental, social and governance [ESG] matters, which will enhance further growth in 2024 and beyond.

I would like to thank NBF’s Board of Directors, members of the Management Committee, and our employees on achieving this excellent set of results for 2023 and acknowledge the dedication and incredible hard work throughout what has been a fulfilling year. On behalf of the Board, I would like to take this opportunity to thank both our customers and our shareholders for their continued trust and support over the years. We look forward to a further successful year ahead and will embrace 2024 with optimism to accomplish the very best.”

Dr. Raja Easa Al Gurg, Deputy Chairperson said:

“We are immensely proud of the outstanding set of results achieved by NBF in 2023. This praiseworthy performance was facilitated by the UAE’s exemplary leadership and progress across its principal foundations, not least its robust economy, attractive investment environment and a position as a safe haven in an uncertain world.

Underpinned by the interest rate environment and the resultant revenue momentum, a healthy balance sheet, robust capital adequacy, sound improvement in asset quality and success in leveraging technology, NBF delivered a strong financial performance in 2023; while operating to the highest standards of international risk management practices.

We look forward to another successful year for the Group and remain committed to supporting our customers, making a contribution to the wider communities in which we operate, including supporting the arts and various cultural and environmental activities and performing our role in the progress of UAE’s economic and social development.”