The National Bank of Fujairah (NBF) today announced a consolidated net profit of AED79.9 million for the first quarter of 2007, an increase of 35.5 percent compared to the corresponding three month period ended 31 March 2006.
Commenting on the results, Asad Ahmed, General Manager of NBF, said: “We are very pleased with the bank’s performance so far this year and we expect this growth to continue as we press on with our expansion plans this year. Apart from the continued sustainable growth in core business, the results are also driven by strong performance of the Investment Portfolio. Net interest income rose by 33.3 percent and fee income by 17 percent over corresponding year March quarter on the back of consistent growth in volumes and improved margins.”
“Total average assets and average liabilities for the quarter were AED8.2 billion and AED6.6 billion respectively as opposed to average assets and liabilities for the corresponding quarter in 2006 of AED 6.7 billion and AED 5.3 billion,” he continued.
General and administrative expenses increased by 37.4 percent for the interim period ended 31 March 2007 mainly on account of employee related cost, which reflects the bank’s growing number of employees and strengthening of management structure in line with the bank’s aggressive growth plans. Cost to income ratio at 27.9 percent was marginally up compared to 27.3 percent of corresponding three months period ended 31 March 2006 reflecting investment in new business initiatives and expansion of distribution network.
Earnings per share increased to AED0.08 for three months as opposed to AED0.06 for corresponding three months of 2006. Return on average equity rose from 17 percent in March 2006 to 20.2 percent while return on average assets stood at 3.91 percent for the interim period as opposed to 3.54 percent in corresponding March 2006. Total shareholders’ equity as of 31 March 2007 stood at AED1.66 billion and the Bank’s capital adequacy ratio at period end stood at 18.17 percent against the Central Bank minimum of 10 percent.
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