NBF's net profit in H1 2024 was AED 441.2 million.

placestovisit.ae -

The National Bank of Fujairah (NBF) reported a net profit after tax of AED AED 441.2 million for the first half of 2024, with a corporate tax charge of AED 43.8 million.

In a press statement today, NBF announced a 46 percent year-on-year growth, closing the six-month period with a net profit before tax of AED AED 484.9 million, compared to AED AED 332.1 million in the corresponding period of 2023.

In Q2 2024, NBF achieved a net profit before tax of AED AED 210.1 million, a 16.7 percent increase over Q2 2023. This performance was driven by high interest rates, improved impairment provisions, careful cost management, and buoyant market conditions.

NBF's operating profit for the six-month period was AED AED 845.8 million, a rise of 7.7 percent compared to AED AED 785.3 million in 2023, and up 5.1 percent for Q2 2024 over Q2 2023. Operating income reached AED 1.2 billion, up 8.2 percent from AED 1.1 billion in 2023.

Key highlights include:

  • Net interest income and net income from Islamic financing and investment activities grew 7.0 percent to AED AED 882.5 million for the six-month period.
  • Net fees, commission, and other income rose 8.9 percent to AED AED 229.8 million.
  • Foreign exchange and derivatives income grew by 14.0 percent to AED 90.7 million.
  • Operating expenses increased by 9.4 percent, reflecting investments in digitalization and customer service enhancements.
  • Net impairment provisions decreased by 20.4 percent to AED AED 360.9 million.
  • Total assets rose by 7.6 percent to AED 55.6 billion.
  • Loans and advances and Islamic financing receivables rose by 5.5 percent to AED 29.4 billion.
  • Investments and Islamic instruments increased by 8.6 percent to AED 8.8 billion.
  • Customer deposits and Islamic deposits increased by 7.8 percent to AED 41.6 billion.

NBF maintained a strong capital adequacy ratio (CAR) of 18.6 percent, with Tier 1 at 17.5 percent and CET 1 at 14.1 percent. The return on average assets was 1.6 percent, and the return on average equity was 13.3 percent. The bank's ratings were re-affirmed at Baa1 / Prime-2 for deposits and A3 for counterparty risk assessment by Moody's, with a stable outlook.

Dr. Raja Easa Al Gurg, Deputy Chairperson, said, "We are pleased with the bank delivering another very strong set of results in the first half of 2024 and being honored with a number of prestigious awards and endorsements. NBF's financial performance over the recent quarters underscores the importance of maintaining a well-informed and strategic approach to achieving sustainable growth. NBF will continue to support quality opportunities to enhance shareholder value, facilitated by strong capital adequacy, ample liquidity and a well-diversified balance sheet."