The National Bank of Fujairah (NBF) revealed on Tuesday a substantial year-on-year growth of 39.3 percent, culminating in a net profit before tax of Dh715 million for the nine-month period, up from Dh513.2 million in the same period of 2023. NBF's net profit after tax stood at Dh650.4 million, inclusive of a corporate tax charge of Dh64.6 million.
Bolstered by a robust performance in Q3 2024, NBF reported a net profit before tax of Dh230.1 million for the third quarter, marking a 27.1 percent increase over the same quarter in 2023. The bank attributed these results to sustained momentum in selective quality business growth and the capacity to maintain margins amid a declining interest rate environment. Factors such as supportive market conditions, UAE government initiatives, improved impairment provisions, and cost management contributed to this strong performance.
NBF's operating profit for the nine-month period reached Dh1.3 billion, a 7.6 percent rise from Dh1.2 billion in the corresponding period of 2023. Operating income also saw an 8.4 percent increase to Dh1.8 billion, reflecting growth in key business segments and proactive asset and liability management. Net interest income and income from Islamic financing activities grew by 5.6 percent to Dh1.33 billion, while net fees, commissions, and other income surged by 15.4 percent to Dh358.1 million.
Foreign exchange and derivatives income grew by 16.6 percent to Dh139.1 million, and income from investments and Islamic instruments showed a significant rebound. Operating expenses increased by 10.3 percent, driven by investments in digitalization and infrastructure. NBF's cost-to-income ratio remained stable at 30.5 percent, reflecting ongoing cost discipline.
The bank maintained prudent recognition of problem accounts, booking net impairment provisions of Dh555.7 million, a 16.8 percent reduction from the previous year. Total assets grew by 13.2 percent to Dh58.5 billion, and loans and advances increased by 10.5 percent to Dh30.8 billion. Customer deposits rose by 8.5 percent to Dh41.8 billion, with CASA deposits accounting for 40 percent of the total.
NBF's capital adequacy ratio stood at 21.3 percent, exceeding regulatory requirements. The bank's return on average assets and equity improved to 1.57 percent and 11.87 percent, respectively. Dr. Raja Easa Al Gurg, Deputy Chairperson, emphasized the bank's strategic execution and resilience, positioning it for sustained progress in 2024 and beyond.
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