National Bank of Fujairah (NBF) announced its financial results for its third quarter ended 30 September 2007 where profits increased to AED 228.9 million, up 35.5% from profit of AED 168.9 million in the corresponding period in 2006.
“We are pleased to maintain consistency in our results and growth rate. They reflect the continued progress on our strategy of ‘build and diversify’ which is aimed at producing stability of earnings and diversification of revenue sources” said Asad Ahmed, NBF’s General Manager. “NBF continues to build on its core strengths and remains focused in penetrating into the SME and retail markets.” he added. Net interest and fee income rose by 30% over corresponding period on the back of sustainable growth in volumes. Total income growth at 40% was helped by investment income.
NBF crossed the balance sheet size of AED 10 billion for the first time with total assets and liabilities up 18.7% and 21.1% respectively to AED 10.2 billion and AED 8.5 billion over 31 December 2006. Earnings per share increased to AED 0.21 for the nine months from AED 0.15 in 2006. Return on average equity rose from 11.7% in September 2006 to 18.6% while return on average assets stood marginally lower at 3.2% for the interim period as opposed to 3.3% in 2006. Total shareholders’ equity as of 30 September 2007 stood at AED 1.7 billion and the Bank’s capital adequacy ratio at period end stood at 15.45% against the Central Bank minimum of 10%.
Operating expenses increased by 57% for the nine months mainly on account of employee related cost which reflects the market driven increase in employee compensation and the growing number of our employees. Cost to income ratio at 31.9% was marginally up compared to 30.0% of corresponding nine months of 2006 reflecting investment in new business initiatives, expansion of distribution network and focus on control and governance.
NBF went successfully live with the new core banking system Temenos T24 on 07 September 2007. The new solution from Temenos (SWX: TEMN), a leading provider of integrated core banking systems, will accelerate the growth of NBF’s retail banking business and further enhance its customer relationships across the country. The solution will provide us with the flexibility, scalability and security in addition to a host of functionalities for both retail and corporate customers. NBF also plans to introduce internet banking during the first quarter of 2008.
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