Management
discussion and
Analysis
Consolidated Quarter 3
2022, Financial Results
23rd October 2022Financial Performance Summary
Net profit
2022 YTD Key Highlights Stat
Net Profit of AED 260 Mn 33.5% YoY. AED 260Mn
Net f AED 261 M 24.5% YoY.
33.5% from YTD September 2021
N f AED 84 M 24.9% YoY
C f 29.3%, AED 112 M
Gross lending
fAED 9 M 42.0% YoY.
AED 6,582Mn
Q3 2022 K g hlig hts Sh
N et l at AED 6,258 M
Return on Equity
Total sits were maintained at the sa D
Adva 123.02% as at September22.
6.4%
C d CET1 44.09% and 42.96%
117 bps from Dec 2021
NPL 9.1% 194.54%Financial Performance Summary
• National Bank of Umm Al-Qaiwain has posted a net profit of AED 259.93 million for the nine months of the year 2022.
• Net profit has increased by 33.5% compared to AED 194.68 million for the nine months of previous year due to improving external environment.
• Cost to income stood at 29.3% during the nine months, reflecting the Bank’s operational efficiencies and disciplined cost management.
• Bank is focused on exercising prudence and building up provisions to ensure adequate cushions during current challenging times. Bank holds collateral and
specific provision to the tune of 194.54 % for vast majority of the non-performing loans, which reflects prudent management and effective monitoring of our
loans and advances porfolio.
• Total assets stood at the AED 13.37 billion , up by 1.7% compared to Dec 2021, while maintaining deposits to advances ratio prudently at 123.02%.
• Capital Adequacy Ratio stands at 44.09% as at September 2022, which continues to be well over the minimum threshold stipulated by Central Bank of the
UAE in accordance with Basel III guidelines. This provides opportunities to leverage. Tier I ratio is maintained strongly at 42.96%.
• Bank has maintained high liquidity with stable resources to advances ratio of 158.88% as at September 2022, while Central Bank of the UAE has set 100% as
the minimum limit.
• Net Stable funding ratio as at 30 September 2022 as per Basel III guidelines stood at 117.24% compared to minimum stipulated ratio of 100%. This will
enable the Bank to prudently expand its lending portfolio.Chief Executive Officer
Mr. Adnan Al Awadhi, said, “Despite ongoing difficulties, NBQ has gained ground. It has solidified its position as one of the top banks in
the UAE and established a new standard for constantly increasing market share. We believe the bank is well-positioned for ongoing
sustainable expansion, especially given the more favorable market conditions.”
Mr. Adnan Al Awadhi ,NBQ CEO, Added, “Results for the third quarter of the year show how strong and resilient the bank is. Strategically
prioritizing our core businesses, taking a responsible approach to finance, and placing a strong emphasis on diversifying our revenue
streams have led to increase in profit. As we move forward, we will keep searching for new business opportunities to satisfy customer
demand and boost shareholder value.”Credit Rating
Moody’s Rating Capital Intelligence Rating
Bank Deposits-long term (Local Currency ) Baa2 Foreign Currency Rating-short term A2
Bank Deposits-short term (ForeignCurrency ) Baa2 Foreign Currency Rating-Long term A-
Baseline Credit Assessment ba2 Bank Standalone rating bbb
Adjusted Baseline Credit Assessment ba2 Core Financial Strength bbb-
Counterparty Risk Assessment-Short term P-2(cr) Extraordinary Support Level High
Baa1(cr) Bank Standalone Outlook Stable
Counterparty Risk Assessment-Long term
Outlook StableThank you

Sentiment: positive