National Bank of Fujairah’s (NBF) net profit before tax jumped 39.3% in the first nine months of the year to AED 715 million compared to AED 513.2 million in the same period of 2023. The bank’s net profit after tax stood at AED 650.4 million – an achievement that reflected not only strategic foresight but also operational excellence.
With a net profit before tax of AED 230.1 million, a 27.1% increase compared to Q3 2023, NBF showed the strength of its core business and ability to adapt in the face of a complex operating environment driven by the UAE’s buoyant domestic market.
NBF said its operating income in the January-September period reached AED 1.8 billion, marking an 8.4% increase, while net interest income and Islamic financing activities rose by 5.6% to AED 1.33 billion.
Similarly, foreign exchange and derivatives income surged by 16.6%, reflecting the bank’s ability to capitalise on market opportunities. NBF invested heavily in digitalisation initiatives, infrastructure, and its workforce to stay competitive and offer exceptional customer service.
The bank’s commitment to digitalisation led to a 10.3% rise in operating expenses, but with the cost-to-income ratio standing at 30.5%, NBF’s expense management remained firmly within industry benchmarks.
Despite economic uncertainties, the bank reduced its impairment provisions by 16.8% to AED 555.7 million, signalling an improvement in asset quality. Though the non-performing loan (NPL) ratio ticked up slightly to 5.3% from 4.9% in December 2023, the bank’s overall asset quality improved, with a decline in high-risk assets.
NBF’s growing customer deposits, which reached AED 41.8 billion, showed the trust it had earned. A balanced deposit mix, with 40% held in current and savings accounts (CASA), allowed the bank to navigate the shifting interest rate environment effectively. Its liquidity ratios remained strong, with an eligible liquid assets ratio of 30.3%, well above regulatory minimums, signalling ample liquidity to support future growth.
“We will continue building on our dedication to service, driving digital transformation, and enhancing shareholder value,” said Dr. Raja Easa Al Gurg, NBF’s Deputy Chairperson. Al Gurg underscored the bank’s mission to navigate uncertainties with agility while leveraging local market momentum for sustained progress in 2024 and beyond.
With improving asset quality, robust capital, and strategic foresight, NBF is positioned not only to weather global challenges but to thrive amidst them. Its reaffirmed A- credit rating by Capital Intelligence serves as further validation of its prudent risk management and resilience.
Through the ups and downs of market conditions, NBF’s story for 2024 is one of careful strategy, unwavering execution, and the pursuit of growth. Each decision – whether in risk management, customer engagement, or digital investment – tells the story of a bank on a mission to stay future-ready, agile and aligned with its customers and shareholders.
