National Bank of Fujairah (NBF) announced its un-audited results for the year ended 31 December 2007 where profits jumped to Dhs323.8m, up 36.3% from profit of Dhs237.6m in 2006. 2007 was the fourth consecutive year where the bank saw a net profit growth in excess of 35%.
“We are pleased to maintain consistency in our results and growth rate. NBF continues to reap benefits of its ‘build and diversify’ strategy by leveraging its expertise in Corporate, Trade Finance and Treasury business and making headways in SME and Wealth Management segments, said Asad Ahmed, NBF’s General Manager.
“NBF will continue to follow the path of sustained growth through relentless focus on producing stable and diversified source of earnings.” he added.
Net interest rose by 32.9% fueled by sustainable growth in volumes. Fee income saw a growth of 23.2% on the back of strong performance from Wealth Management and Financial Institution group coupled with diversification into syndication businesses. During 2007, NBF launched its syndication desk and successfully closed transactions totaling Dhs500m in its capacity as lead manager.
Total assets and liabilities grew by 42.5% and 48.8% respectively to Dhs12.3bn and Dhs10.5bn over 31 December 2006. Earnings per share increased to Dhs0.29 for the year from Dhs0.22 in 2006. Return on average equity rose from 16.0% in 2006 to 19.2% while return on average assets stood marginally lower at 3.1% for the year as opposed to 3.2% in 2006. Total shareholders’ equity as of 31 December 2007 (prior to any dividend distribution) stood at DHS 1.8 bn and the Bank’s capital adequacy ratio at period end stood at 14.69% against the Central Bank minimum of 10%.
Operating expenses increased by 44.0% and cost to income ratio at 30.6% was marginally up compared to 29.0% in 2006. This largely reflects strategic investment in new business initiatives, strengthening of human capital, enhanced focus on control and governance and expansion of distribution network, and partly attributable to inflationary pressures. Number of staff of the Group has grown from 399 in 2006 to 511.
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 half of 2008.
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