National Bank of Fujairah's profits soar 63.8 per cent as it emerges relatively unscathed from the global financial crisis.
Fujairah bank sees profits rise 63%
National Bank of Fujairah has reaped the benefits of lending more and provisioning less as it boosted profitability and margins last year.
The bank reported net profits for the year had soared 63.9 per cent to Dh170.9 million (US$46.5m), driven by an increase in operating profit and reduced provisioning.
"We are pleased to see the bank make strong progress in achieving its best operating performance ever during these challenging times," said Sheikh Saleh bin Mohammed Al Sharqi, the chairman of NBF.
"The bank has grown its core earnings which, coupled with a sharper focus on costs and balance-sheet management, has helped absorb credit losses and grow profitable operations."
Sir Easa Saleh al Gurg, the bank's deputy chairman, added: "The bank leveraged its strong liquidity and capital position, and grew its business prudently and efficiently in the local economy. Our business in Fujairah, in particular, saw a record growth in 2010."
Operating profit for the year increased 17.9 per cent to Dh375.9m, with net interest income rising 10.2 per cent to Dh360.1m as the company's loan book grew by 11.5 per cent. The bank also decreased provisioning by 4.3 per cent to Dh205m.
The bank did not provide detailed financial statements or earnings for the fourth quarter of last year.
"Their profitability seems to have increased," said Dr Giyas Gokkent, the chief economist at National Bank of Abu Dhabi. "Their asset size has been steady and they've not been growing very rapidly."