National Bank Of Fujairah Total Assets

Strong capital adequacy, healthy liquidity and improvement in asset quality contributed to enhanced shareholder value

NBF is pleased to announce its results today for the three month period ended 31 March 2022.


  • NBF recorded year-on-year growth of 43.7% to close the three month period at a net profit of AED 60.4 million compared to AED 42.0 million in the corresponding period of 2021 and up 143.3% compared to Q4 2021. This demonstrates the bank’s strong recovery and focus on core business, exceptional customer service, augmented level of resilience and pro-active asset and liability management.
  • Supported by higher fee, exchange and investment income, NBF posted an operating profit of AED 293.2 million for the three month period, a rise of 18.2% compared to AED 248.1 million in the corresponding period of 2021 and up 39.5% quarter-on-quarter. This was driven by the improving underlying business momentum and enhanced balance sheet management despite the current volatile environment and recent geopolitical conditions.
  • Operating income reached AED 412.8 million, up 14.6% compared to AED 360.2 million in the corresponding period of 2021 and up 15.5% compared to Q4 2021 reflecting the progressive recovery trend and in line with the bank’s strategy of principal focus on financial stability.
  • Net interest income and net income from Islamic financing and investment activities, up 4.8% and net fees, commission and other income, up 35.0% compared to the corresponding period of 2021, reaching AED 238.6 million and AED 105.8 million respectively; and experienced a growth of 2.9% and 14.3% respectively compared to Q4 2021.
  • Foreign exchange and derivatives income achieved a good growth of 52.3% to AED 47.1 million compared to AED 30.9 million in the corresponding period of 2021 and of 46.0% compared to Q4 2021.
  • Income from investments and Islamic instruments stood at AED 21.4 million compared to AED 23.4 million in the corresponding period of 2021.
  • Operating expenses increased by 6.6%, reflecting NBF’s new investments in its businesses, systems and infrastructure. These investments include a set of digitalisation initiatives to enhance our focus on exceptional customer service through digital adoption and innovation. Cost-to-income ratio improved to 29.0% compared to 31.1% in the corresponding period of 2021, showing the productivity improvements made to date and providing headroom to continue investing in our technological capabilities.
  • NBF maintained its policy of prudent and transparent recognition of problem accounts. The small number of exceptional group exposures that had been earmarked for resolution are progressing in line with the bank’s recovery strategy. NBF secured net impairment provisions of AED 232.9 million for the three month period ended 31 March 2022 compared to AED 206.1 million in the corresponding period of 2021. During the period, the bank’s impairment reserve marginally reduced by 0.2% to AED 189.2 million compared to AED 189.7 million as at 31 December 2021. Total provision coverage ratio (including impairment reserves) improved to 94.5% compared to 87.0% as at 31 December 2021. The NPL ratio improved to 9.1% compared to 9.8% as at 31 December 2021 and IFRS 9 stage 2 exposure improved to 5.8% from 6.1% as at 31 December 2021. Excluding the few exceptional group exposures, the NPL ratio would reduce to 5.1% (31 December 2021: 5.5%).
  • The capital adequacy ratio (CAR) stood at 18.7% (Tier 1 ratio of 17.5% and CET 1 ratio of 13.5%) compared to 19.1% (Tier 1 ratio of 18.0% and CET 1 ratio of 13.8%) at 2021 year-end and is being maintained at this level to support the bank’s ability to ride out any challenges arising out of the rapidly evolving operating landscape.
  • Loans and advances and Islamic financing receivables rose by 6.2% to reach AED 27.2 billion compared to AED 25.6 billion at 2021 year-end, up by 8.7% from 31 March 2021.
  • Investments and Islamic instruments stood at AED 3.6 billion compared to AED 4.4 billion at 2021 year-end and AED 5.0 billion as at 31 March 2021.
  • Customer deposits and Islamic customer deposits stood at AED 32.17 billion compared to AED 32.20 billion at 2021 year-end, up by 13.6% from 31 March 2021. Current and Saving Accounts (CASA) deposits increased by AED 415.0 million from 2021 year-end, a 2.7% increase to AED 15.8 billion as at 31 March 2022. CASA deposits improved to a record 49.2% of total customer deposits compared to 47.9% as at 31 December 2021 and 39.8% as at 31 March 2021 cushioning the impact from the prevailing lower interest rates.
  • Total assets reached AED 42.6 billion compared to AED 42.9 billion at 2021 year-end, up by 8.9% from 31 March 2021.
  • Ample liquidity has been maintained with lending to stable resources ratios at 81.3% (2021: 76.5%) and eligible liquid assets ratio (ELAR) at 19.1% (2021: 26.2%), well ahead of all CBUAE minimum requirements.
  • Return on average assets improved to 0.6%, up from 0.4% for the corresponding period in 2021.
  • Return on average equity improved to 4.2%, up from 3.0% for the corresponding period in 2021.

Dr. Raja Easa Al Gurg, Deputy Chairperson said:

“We are pleased to see an encouraging start to 2022 with a promising set of results for the first quarteraided by the economic recovery from the pandemic. This was accomplished thanks to robust quality business growth and improvement in asset quality in line with our strategy.

Despite the evolving global landscape being dominated by significant geopolitical tensions, volatility and turbulence, the UAE has moved steadily forward and the economic outlook is revealing positive signs of sustained recovery. The UAE achieved 3.8% GDP growth in 2021; and is expected to witness economic growth of 4.2% this year despite growing inflationary pressures, according to the Central Bank of the UAE.

With air travel rebounding, the real estate sector on an upward trajectory and oil prices staying high, NBF is well poised to benefit from the growth that should continue for some time.

The Group’s resilient financial performance emphasizes its ability to navigate the changing environment aided by its strong capital and liquidity position. Credit growth has fared well on the back of effective deployment of liquidity and the balance sheet remains well-diversified and soundly positioned. The franchise’s success in leveraging technology and its growing capabilities in digital innovation continue to take customer service to new levels – a significant strategic priority for NBF.

With this progressive start to 2022 and our best quarter since the pandemic impact emerged, we are assured that the NBF franchise will continue to perform with excellence throughout the course of the year. We look forward to tapping new business opportunities, including leveraging the new opportunities offered by digitalization and evidently performing our role in the development of the UAE economy coupled with enhanced consideration on environmental, social and governance [ESG] matters.”

About National Bank of Fujairah PJSC:

Incorporated in 1982, National Bank of Fujairah PJSC (NBF) is a full services corporate bank with strong corporate and commercial banking, treasury and trade finance expertise as well as an expanding suite of personal banking options and Shari’ah compliant services. Leveraging its deep banking experience and market insight within Fujairah and the UAE, NBF is well-positioned to build lasting relationships with its clients and help them achieve their business goals.

NBF’s key shareholders include the Government of Fujairah, Easa Saleh Al Gurg LLC and Investment Corporation of Dubai. Rated Baa1 / Prime-2 for deposits and A3 for counterparty risk assessment by Moody’s and BBB / A-2 by Standard & Poor’s, both with a stable outlook, the bank is listed on the Abu Dhabi Securities Exchange under the symbol “NBF”. It has a branch network of 15 (of which 1 is an electronic banking service unit) across the UAE.

For further information, please contact:

Strategic Marketing and Communications Department

E-mail: [email protected]

Telephone: +971 4 507 8351 and +971 4 507 8576