Home Banking & Finance National Bank of Fujairah posts results achieving its best ever operating performance

National Bank of Fujairah posts results achieving its best ever operating performance

Operating income reached AED 1.8 billion up 25.8% and operating profit surged 29.4% to reach AED 1.2 billion

NBF - Fujairah Head Office

NBF announced results for the year ended 31 December 2022 in accordance with the approval received from the Central Bank of the United Arab Emirates.


  • NBF recorded year-on-year growth of 195.3% to close the year at a net profit of AED 340.4 million compared to AED 115.2 million in 2021. This reflects the bank’s long-standing customer centric approach, good quality business growth and enhanced balance sheet management supported by the impressive local economic recovery despite an uncertain global geopolitical environment.
  • NBF posted its highest ever operating profit of AED 1.2 billion, a rise of 29.4% compared to AED 955.6 million in 2021 underpinned by higher net interest income and net income from Islamic financing and investment activities, fee and exchange income.
  • NBF recorded its best ever operating income of AED 1.8 billion, up 25.8% over 2021 reflecting the robust core business performance and asset and liability management in a rising interest rate environment.
    • Net interest income and net income from Islamic financing and investment activities grew 29.8% to AED 1.2 billion compared to AED 941.1 million in 2021.
    • Net fees, commission and other income rose 14.2% to AED 393.3 million compared to AED 344.3 million in 2021.
    • NBF posted record foreign exchange and derivatives income of AED 181.4 million, with a growth of 58.8% compared to AED 114.2 million in 2021.
    • Income from investments and Islamic instruments stood at AED 18.8 million compared to AED 42.3 million in 2021.
  • Operating expenses increased by 18.9%, 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 31.9% compared to 33.7% in 2021, after achieving further productivity improvements. This provides ample headroom to continue investing in our technological capabilities and enhancing the customer experience going forward.
  • NBF maintained its policy of prudent and transparent recognition of problem accounts. The small number of exceptional group exposures that had earlier been earmarked for resolution progressed well in line with the bank’s recovery strategy. NBF secured net impairment provisions of AED 896.0 million for the year ended 31 December 2022 compared to AED 840.4 million in 2021. During the year, the bank’s impairment reserve reduced by 11.3% to AED 168.2 million compared to AED 189.7 million as at 31 December 2021. Total provision coverage ratio (including impairment reserves) improved to 110.0% compared to 87.0% as at 31 December 2021. The NPL ratio improved to 6.9% compared to 9.8% as at 31 December 2021.
  • Loans and advances and Islamic financing receivables rose by 5.1% to reach AED 26.9 billion compared to AED 25.6 billion at 2021 year-end.
  • Investments and Islamic instruments increased by 45.2% from AED 4.4 billion at 2021 year-end to AED 6.3 billion as at 31 December 2022 evidencing the deployment of a portion of excess liquidity towards a high-quality investment book to augment shareholder value.
  • The capital adequacy ratio (CAR) stood at 18.6% (Tier 1 ratio of 17.4% and CET 1 ratio of 13.6%) compared to 19.1% (Tier 1 ratio of 18.0% and CET 1 ratio of 13.8%) at 2021 year-end and is being maintained at this level to support the bank’s ability to grow and to meet any challenges that may arise from the evolving global economy.
  • Customer deposits and Islamic customer deposits rose by 11.0% to reach AED 35.7 billion compared to AED 32.2 billion at 2021 year-end. Current and Saving Accounts (CASA) deposits increased by AED 760.2 million from 2021 year-end, a 4.9% increase to AED 16.2 billion as at 31 December 2022. CASA deposits improved to 45.3% of total customer deposits as at 31 December 2022 softening the impact of increasing rates for fixed term products on deposit costs.
  • Total assets rose by 10.9% to reach AED 47.6 billion compared to AED 42.9 billion at 2021 year-end.
  • Ample liquidity has been maintained with lending to stable resources ratio at 72.1% (2021: 76.5%) and eligible liquid assets ratio (ELAR) at 24.9% (2021: 26.2%), well ahead of Central Bank of the UAE’s minimum requirements.
  • Return on average assets improved to 0.8%, up from 0.3% in 2021.
  • Return on average equity improved to 5.9%, up from 2.0% in 2021.
  • Taking into account the 2022 performance, the Board of Directors proposed a distribution of profits of 6.0% (2021: nil) of the paid-up capital in the form of bonus shares.

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

“We are pleased with the outstanding set of results achieved by NBF. Our record 2022 operating performance was testament to the robustness of our business model and operational strategy. Despite a year marked by volatile geopolitical conditions, record inflation and climate-linked disasters, we were sufficiently resilient to adapt to the emerging conditions and record strong growth.

We increased operating income by 25.8 percent to AED 1.8 billion, the highest in our 40-year history. Likewise, operating profit increased by 29.4 percent to AED 1.2 billion. This demonstrates the adaptability of the NBF franchise to navigate through the rapidly-changing environment effectively to emerge stronger than ever.

NBF was honoured with a number of prestigious accolades and endorsements throughout 2022, further underscoring its culture of exceptional service and client partnership. The Board believes in on-going investment in our brand to facilitate future growth, generate long-term sustainable returns, preserve significant capital strength and benefit from the new opportunities that are arising from the developing focus on environmental, social and governance [ESG] matters, which will augment further growth in 2023 and beyond.

Finally, and as always, I would like to thank NBF’s customers, shareholders, Board of Directors, members of the Management Committee and our employees for their continued and incredible hard work, trust and support towards our success in 2022. We look forward to a fruitful year ahead and will embrace 2023 with vigour to achieve the very best.”

Dr. Raja Easa Al Gurg, Deputy Chairperson said:

“Our performance this year has been strong and praiseworthy facilitated by the pace of economic recovery of the country. NBF progressed well in the execution of its strategic plans supported by a robust capital adequacy, sound improvement in asset quality, success in leveraging technology and a well-diversified balance sheet resulting in a solid turnaround.

The leadership’s staunch attention to prudent risk management standards, upholding the highest ethical and corporate governance practices and the drive to deliver a differentiated and exceptional customer service will ensure our growth continues.

Despite the mild recessionary pressures forecast for 2023, we look forward to another successful year for the Group and remain committed to performing our role in the progress of the UAE economy.”