NBF Profit Rises 28.9%For 2024
Date
1/29/2025 2:36:30 PM
(MENAFN- Khaleej Times)
National bank of Fujairah (NBF) on Wednesday reported a growth of 28.9 per cent in net profit before tax to close the year at a of Dh934.8 million compared to Dh725.1 million in 2023.
NBF posted a record net profit after tax of Dh850.1 million for the year with a corporate tax charge of Dh84.7 million.
“Buoyant market conditions supported by UAE government initiatives, improvement in impairment provisions, and careful management of costs, in what continues to be an uncertain global environment exacerbated by geopolitical tensions, all contributed to this robust set of results,” NBF said in a statement.
NBF booked net impairment provisions of Dh690 million for the year ended December 31, 2024 compared to Dh859 million in 2023, a substantial reduction of 19.7 per cent. The asset quality measured by the combined IFRS 9 stage 2 and 3 mix improved to 10.2 per cent compared to 12.2 per cent as at December 31, 2023. The NPL ratio stood at 5.1 per cent compared to 4.9 per cent as at 31 December 2023. The total provision coverage ratio stood at 119.4 per cent compared to 120.2 per cent as at December 31, 2023
Underpinned by higher revenue generation from balance sheet growth, NBF posted its highest ever operating profit of Dh1.62 billion, a rise of 2.6 per cent compared to Dh1.58 billion in 2023.
NBF recorded its best ever operating income of Dh2.4 billion, up 6.7 per cent over 2023 reflecting enhanced focus on key business segment growth, proactive asset and liability management and the bank's long-standing customer centric approach that off-set the impact from the reducing interest rates.
Net interest income and net income from Islamic financing and investment activities grew 4.8 per cent to Dh1.8 billion compared to Dh1.7 billion in 2023. Net fees, commission and other income rose 8.4 per cent to Dh452.7 million compared to Dh417.8 million in 2023.
Foreign exchange and derivatives income experienced a solid growth of 15 per cent compared to 2023, reaching Dh189.1 million for the year ended 31 December 2024.
Helped by an improvement of Dh20 million in investments designated as fair value through other comprehensive income (FVOCI), NBF's total comprehensive income for the year was Dh870.1 million, up 10.1 per cent compared to Dh790.4 million in 2023.
Taking into account the 2024 performance, the board of directors proposed cash dividends of 15 per cent.
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