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News Release
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Ref No. 26 July 2023 National Bank of Fujairah
National Bank of Fujairah posted a strong set of results in the first half of 2023
Net profit jumped 120.7% to reach AED 332.1 million for the half year and rose
18.5% quarter-on-quarter on the back of underlying business momentum
26 July 2023: National Bank of Fujairah PJSC (NBF) is pleased to announce its results
today for the six month period ended 30 June 2023.
Highlights:
▪ NBF recorded year-on-year growth of 120.7% to close the six month period with a
net profit of AED 332.1 million compared to AED 150.5 million in the corresponding
period of 2022. On the back of a robust Q2 2023 performance, NBF posted a net
profit of AED 180.1 million in the second quarter of 2023, a rise of 99.8% over the
corresponding quarter of 2022, which reflects the interest rate environment, an
improvement in the impairment provisions during the current quarter and a high
level of resilience in its core business despite the prevailing geopolitical headwinds
and an uncertain global environment.
▪ Aided by higher net interest income and net income from Islamic financing and
investment activities, NBF posted an operating profit of AED 785.3 million for the six
month period, a substantial increase of 28.9% compared to AED 609.1 million in the
corresponding period of 2022 and up 22.7% for the three month period ended 30
June 2023 over the corresponding period of 2022.
▪ Operating income reached AED 1.1 billion for the six month period ended 30 June
2023, up 29.6% compared to AED 858.5 million in the corresponding period of 2022,
reflecting the benefit from rising interest rates, good momentum experienced in our
businesses and enhanced asset and liability management. Operating income growth
of 25.4% was recorded for the three month period ended 30 June 2023 over the
corresponding period of 2022; and up 0.9% compared to Q1 2023.
▪ Net interest income and net income from Islamic financing and investment
activities grew 58.6% to AED 825.1 million for the six month period ended 30
June 2023 compared to AED 520.1 million in the corresponding period of
2022. It was up 49.5% for the three month period ended 30 June 2023
compared to the corresponding period of 2022; and up 4.2% compared to Q1
2023.
NBF RESULTS National Bank of Fujairah PJSC
PO Box: 2979, Dubai, UAE
Page 1 of 5 Tel: +971 600 565551
Fax: +971 9 222 7992
www.nbf.ae
Classified as: NBF Internal UseNews Release
Ref No. 26 July 2023
▪ Net fees, commission and other income stood at AED 211.0 million for the six
month period ended 30 June 2023 compared to AED 214.5 million in the
corresponding period of 2022.
▪ Foreign exchange and derivatives income stood at AED 79.5 million for the six
month period ended 30 June 2023 compared to AED 102.5 million in the
corresponding period of 2022.
▪ Operating expenses increased by 31.4%, reflecting NBF’s investments in its
businesses, systems, infrastructure and people. These investments include a set of
digital initiatives to further enhance the focus on exceptional customer service
through digital adoption and innovation. Further, the impact of rising inflation
continued to affect our operating expenses. NBF’s cost-to-income ratio stood at
29.4% compared to 29.1% in the corresponding period of 2022; remaining in the
mid-industry range reflecting on-going cost discipline.
▪ NBF maintained its policy of prudent and transparent recognition of problem accounts
taking into consideration the new credit risk standards being introduced by the
Central Bank of the UAE and the risk of a global recession. NBF booked net
impairment provisions of AED 453.1 million for the six month period ended 30 June
2023 compared to AED 458.6 million in the corresponding period of 2022. During the
period, the bank’s impairment reserve reduced by 2.4% to AED 164.2 million
compared to AED 168.2 million as at 31 December 2022. Total provision coverage
ratio improved to 116.9% compared to 101.5% as at 31 December 2022. The NPL
ratio improved to 5.7% compared to 6.9% as at 31 December 2022, as the bank
successfully progressed the resolution of a few exceptional exposures.
▪ Loans and advances and Islamic financing receivables rose by 5.5% to reach AED
28.4 billion compared to AED 26.9 billion at 2022 year-end, up by 2.4% from 30
June 2022.
▪ Investments and Islamic instruments increased by 3.8% to reach AED 6.6 billion
compared to AED 6.3 billion at 2022 year-end, up by 28.6% from 30 June 2022
evidencing the deployment of a portion of liquidity towards a high-quality investment
book offering good risk-to-return as well as access to market liquidity.
▪ The capital adequacy ratio (CAR) stood at 18.2% (Tier 1 ratio of 17.0% and CET 1
ratio of 13.4%) compared to 18.6% (Tier 1 ratio of 17.4% and CET 1 ratio of 13.6%)
at 2022 year-end and is being maintained at this level to support the bank’s ability to
NBF RESULTS National Bank of Fujairah PJSC
PO Box: 2979, Dubai, UAE
Page 2 of 5 Tel: +971 600 565551
Fax: +971 9 222 7992
www.nbf.ae
Classified as: NBF Internal UseNews Release
Ref No. 26 July 2023
grow and meet any challenges that may arise from the rapidly evolving global
economy.
▪ Customer deposits and Islamic customer deposits reduced by 2.4% at AED 34.9
billion compared to AED 35.7 billion at 2022 year-end, and were up by 9.6% from 30
June 2022. Current and Saving Accounts (CASA) deposits stood at 41.6% of total
customer deposits softening the impact of increasing rates for fixed term products on
deposit costs.
▪ Total assets rose by 0.5% to reach AED 47.9 billion compared to AED 47.6 billion at
2022 year-end, up by 9.5% from 30 June 2022.
▪ Ample liquidity has been maintained with lending to stable resources ratios at 75.6%
(2022: 72.1%) and eligible liquid assets ratio (ELAR) at 22.2% (2022: 24.9%), well
ahead of Central Bank of the UAE’s minimum requirements.
▪ Return on average assets improved to 1.4%, up from 0.7% for the corresponding
period in 2022.
▪ Return on average equity improved to 11.1%, up from 5.3% for the corresponding
period in 2022.
▪ NBF’s rating was upgraded by Standard and Poor’s (S&P) to ‘BBB+’ from ‘BBB’ on the
basis of strong track record of local banks being supported by the UAE’s Government
Authorities, and the bank’s higher profitability and strong capitalization. It also
affirmed the ‘A-2’ short-term rating with a stable outlook that reflects the bank’s
creditworthiness. Further, NBF’s rating was re-affirmed at Baa1 / Prime-2 for
deposits and A3 for the counterparty risk assessment by Moody’s, with a stable
outlook, highlighting the bank’s underlying strength, prudent risk management and
resilience.
NBF RESULTS National Bank of Fujairah PJSC
PO Box: 2979, Dubai, UAE
Page 3 of 5 Tel: +971 600 565551
Fax: +971 9 222 7992
www.nbf.ae
Classified as: NBF Internal UseNews Release
Ref No. 26 July 2023
Dr. Raja Easa Al Gurg, Deputy Chairperson said:
“2023 has started well for NBF, with the bank delivering another very encouraging set of
results in the first half of 2023 and being honored with a number of prestigious awards
and endorsements. We are particularly delighted that the bank has been awarded the
‘Best Innovation in Trade Finance’ and ‘Most Innovative Trading Platform’ awards at the
recent MEA Finance Banking Technology Awards; and the ‘Best Islamic Window - UAE’ at
the International Finance Awards 2023, showcasing two of our business areas that have
sustained strength.
NBF’s strong Q2 results re-affirm that our business strategies and operational priorities
are on track to ensure we return to our long-term trend of sustainable growth. It is good
to see the bank’s underlying resilience and proactive approach in what continues to be
an uncertain and challenging environment; resulting in an improvement in business
performance and asset quality that augurs well for the coming quarters of 2023 and
beyond.
Against the backdrop of the risk of global recession, high gold prices supported by fears
of an economic crisis and simmering geopolitical tensions, the nation’s economy is
projected to grow 3.9 per cent in 2023. This growth will be facilitated through the
government’s endeavours and collaboration with the private sector that will continue to
unlock ample opportunities across diverse spheres coupled with the now substantial
foreign direct investment flow into the UAE and hydrocarbon demand.
Gaining from this good market momentum, NBF will capitalize on the quality
opportunities to enhance shareholder value and will pursue its digitally enabled approach
to servicing customer needs, supported by strong capital adequacy, ample liquidity and a
well-diversified balance sheet; being a reliable and consistent player.
In parallel, we will maintain our focus on environmental, social and governance (ESG)
friendly activities and businesses as included in the NBF’s ESG Position Statement issued
in Q2 2023, to enhance the bank’s footprint in this space accentuating its commitment to
long-term sustainability.
[End]
NBF RESULTS National Bank of Fujairah PJSC
PO Box: 2979, Dubai, UAE
Page 4 of 5 Tel: +971 600 565551
Fax: +971 9 222 7992
www.nbf.ae
Classified as: NBF Internal UseNews Release
Ref No. 26 July 2023
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 14 across the UAE.
For further information, please contact:
Strategic Marketing and Communications Department
E-mail: CorpComm@nbf.ae
Telephone: +971 4 507 8351 and +971 4 507 85769
NBF RESULTS National Bank of Fujairah PJSC
PO Box: 2979, Dubai, UAE
Page 5 of 5 Tel: +971 600 565551
Fax: +971 9 222 7992
www.nbf.ae
Classified as: NBF Internal Usennbbff
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National Bank of Fujairah
Foreign exchange and derivatives income stood at AED 79.5 million for the six month period
ended 30 June 2023 compared to AED 102.5 million in the corresponding period.
Operating expenses increased by 31.4%, reflecting NBF's investments in its businesses,
systems, infrastructure and people. These investments include a set of digital initiatives to
further enhance the focus on exceptional customer service through digital adoption and
innovation. Further, the impact of rising inflation continued to affect our operating expenses.
NBF's cost -to -income ratio stood at 29.4% compared to 29.1% in the corresponding period;
remaining well within the mid -industry range reflecting on -going cost discipline.
Movement in Operating Income
1,113.0
858.5
30 -Jun -22 Net interest Net fees and Foreign exchange Loss from Other operating 30 -Jun -23
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Classified as: NBF External
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National Bank of Fujairah
Foreign exchange and derivatives income stood at AED 79.5 million for the six month period
ended 30 June 2023 compared to AED 102.5 million in the corresponding period.
Operating expenses increased by 31.4%, reflecting NBF's investments in its businesses,
systems, infrastructure and people. These investments include a set of digital initiatives to
further enhance the focus on exceptional customer service through digital adoption and
innovation. Further, the impact of rising inflation continued to affect our operating expenses.
NBF's cost -to -income ratio stood at 29.4% compared to 29.1% in the corresponding period;
remaining well within the mid -industry range reflecting on -going cost discipline.
Movement in Operating Income
1,113.0
858.5 ra
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10.8 -23.0 -23.9 -14.3
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30 -Jun -22 Net interest Net fees and Foreign exchange Loss from Other operating 30 -Jun -23
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Movement in Operating Expense
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.
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National Bank of Fujairah PJSC PO Box 887, Fujairah, UAE Tel: 600 565551 Outside UAE: +971 450 78499 Fax: -971 9222 7992 nbf.ae
Page 3 of 6
i.),#4.ia.11 qui-4)-11E+6d 0-Ei
Commercial Elects:Talon No 63. Head Office Fu;akeh
Classified as: NBF Externalnnbbff
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DDeeppoossiittss 3344,,888800 3355,,773366 --22..44%% 3344,,888800 3311,,883399 99..6600//00
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I
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CCuussttoommeerr ddeeppoossiittss aanndd IIssllaammiicc ccuussttoommeerr ddeeppoossiittss rreedduucceedd bbyy 22..44%% aatt AAEEDD 3344..99 bbiilllliioonn
ccoommppaarreedd ttoo AAEEDD 3355..77 bbiilllliioonn aatt 22002222 yyeeaarr--eenndd,, aanndd wweerree uupp bbyy 99..66%% ffrroomm 3300 JJuunnee 22002222..
CCuurrrreenntt aanndd SSaavviinngg AAccccoouunnttss ((CCAASSAA)) ddeeppoossiittss ssttoooodd aatt 4411..66%% ooff ttoottaall ccuussttoommeerr ddeeppoossiittss
ssoofftteenniinngg tthhee iimmppaacctt ooff iinnccrreeaassiinngg rraatteess ffoorr ffiixxeedd tteerrmm pprroodduuccttss oonn ddeeppoossiitt ccoossttss..
IInnvveessttmmeennttss aanndd IIssllaammiicc iinnssttrruummeennttss iinnccrreeaasseedd bbyy 33..88%% ttoo rreeaacchh AAEEDD 66..66 bbiilllliioonn ccoommppaarreedd
ttoo AAEEDD 66..33 bbiilllliioonn aatt 22002222 yyeeaarr--eenndd,, uupp bbyy 2288..66%% ffrroomm 3300 JJuunnee 22002222 eevviiddeenncciinngg tthhee
ddeeppllooyymmeenntt ooff aa ppoorrttiioonn ooff lliiqquuiiddiittyy ttoowwaarrddss aa hhiigghh --qquuaalliittyy iinnvveessttmmeenntt bbooookk ooffffeerriinngg ggoooodd
rriisskk --ttoo --rreettuurrnn aass wweellll aass aacccceessss ttoo mmaarrkkeett lliiqquuiiddiittyy..
SSuummmmaarryy ooff tthhee ccaasshh fflloowwss aanndd ccaappiittaall eexxppeennddiittuurree dduurriinngg tthhee ssiixx mmoonntthh eennddeedd
3300 JJuunnee 22002233
DDuurriinngg tthhee ppeerriioodd,, ssuurrpplluuss lliiqquuiiddiittyy hhaass bbeeeenn ddeeppllooyyeedd ttoo ffuunndd qquuaalliittyy llooaannss aanndd iinnvveessttmmeenntt
bbooookk ggrroowwtthh,, wwhhiillee lliiqquuiiddiittyy bbaallaanncceess rreemmaaiinn wweellll aabboovvee tthhee bbaannkk''ss rriisskk aappppeettiittee aanndd
rreegguullaattoorryy rreeqquuiirreemmeennttss.. CCaasshh aanndd ccaasshh eeqquuiivvaalleennttss aammoouunntteedd ttoo AAEEDD 11..88 bbiilllliioonn
ccoommppaarreedd ttoo AAEEDD 22..11 bbiilllliioonn iinn 3300 JJuunnee 22002222.. TThhee ddeeccrreeaassee iiss mmaaiinnllyy oonn aaccccoouunntt ooff aa
ppllaannnneedd rreedduuccttiioonn iinn ddeeppoossiitt bbaallaanncceess aanndd tthhee uuttiilliizzaattiioonn ooff lliiqquuiiddiittyy iinn iinnccrreeaassiinngg
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((22002222:: 7722..11%%)) aanndd eelliiggiibbllee lliiqquuiidd aasssseettss rraattiioo ((EELLAARR)) aatt 2222..22%% ((22002222:: 2244..99%%)),, wweellll
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DEA
ni
serugiF
6-1
nbf
nbf Islamic
6.)-4-AAJI
National Bank ci ruiairah
Return on average equity improved to 11.1%, up from 5.3% for the corresponding
period.
Our Segmented Focus
NBF's business strategy continues to revolve around client relationships, supported by the
segmented approach adopted by the bank to serve its customer needs. This also helps in
building diversification and maintaining stable growth.
The operating income from Corporate and Institutional banking and Business Banking
customers for the six month period ended 30 June 2023 was up by 28.8% and 29.6%,
respectively, compared to the corresponding period. Operating income from Retail Banking
increased by 8.0%, and Treasury, ALM & others have increased by 41.8% compared to
the corresponding period.
Segments' contribution to Operating Income
233.8 164.9
84_4 1 78.1
361.0 278.6
Fir
433.8
J
Jun -23 Jun -22
Corporate and Institutional Banking Business Banking
Retail Banking Tr easury, ALM and Others
Further, NBF Islamic recorded operating income of AED 74.4 million for the six month
period ended 30 June 2023 compared to AED 68.2 million in the corresponding period.
Expectation regarding the economy, sector and its impact on the Bank
NBF has delivered another very encouraging set of results in the first half of 2023 and
been recognised with a number of prestigious awards and endorsements. NBF's strong Q2
results re -affirm that our business strategies and operational priorities are on track to
ensure we return to our long-term trend of sustainable growth. It is good to see the bank's
underlying resilience and proactive approach in what continues to be an uncertain and
challenging environment; resulting in an improvement in business performance and asset
quality that augurs well for the coming quarters of 2023 and beyond.
Against the backdrop of the risk of global recession, high gold prices supported by fears
of an economic crisis and simmering geopolitical tensions, the nation's economy is
projected to grow 3.9 per cent in 2023. This growth will be facilitated through the
government's endeavors and collaboration with the private sector that will continue to
unlock ample opportunities across diverse spheres coupled with the now substantial
foreign direct investment flow into the UAE and hydrocarbon demand.
nbf.ae I ir-7- veer ;)..S.e _sv I ,(). vAEsc alga eib >o Ain:LW 1..010[0, .sai...,J1 ,JJ111,411 .my ,y= E .30.4111 aiq
National Bank of Fujairah PJSC PO Box 887, Fujairah, UAE Tel: 600 565551 Outside UAE: -971 450 78499 Fax: -971 9222 7992 nbf.ae
6..14.40.11 .7r 0.:31 isj4; Page 5 of 6
Conrcrcial Ilegistratior. No 53. -lean Offce FtiAVah
Classified as: NBF External
M
DEA
ni
serugiF
6-1
nbf
nbf Islamic
6.)-4-AAJI
National Bank ci ruiairah
Return on average equity improved to 11.1%, up from 5.3% for the corresponding
period.
Our Segmented Focus
NBF's business strategy continues to revolve around client relationships, supported by the
segmented approach adopted by the bank to serve its customer needs. This also helps in
building diversification and maintaining stable growth.
The operating income from Corporate and Institutional banking and Business Banking
customers for the six month period ended 30 June 2023 was up by 28.8% and 29.6%,
respectively, compared to the corresponding period. Operating income from Retail Banking
increased by 8.0%, and Treasury, ALM & others have increased by 41.8% compared to
the corresponding period.
Segments' contribution to Operating Income
233.8 164.9
84.4 1 78.1
361.0 278.6
433.8 336.8
a
Jun -23 Jun -22
Corporate and Institutional Banking Business Banking
Retail Banking Tr easury, ALM and Others
Further, NBF Islamic recorded operating income of AED 74.4 million for the six month
period ended 30 June 2023 compared to AED 68.2 million in the corresponding period.
Expectation regarding the economy, sector and its impact on the Bank
NBF has delivered another very encouraging set of results in the first half of 2023 and
been recognised with a number of prestigious awards and endorsements. NBF's strong Q2
results re -affirm that our business strategies and operational priorities are on track to
ensure we return to our long-term trend of sustainable growth. It is good to see the bank's
underlying resilience and proactive approach in what continues to be an uncertain and
challenging environment; resulting in an improvement in business performance and asset
quality that augurs well for the coming quarters of 2023 and beyond.
Against the backdrop of the risk of global recession, high gold prices supported by fears
of an economic crisis and simmering geopolitical tensions, the nation's economy is
projected to grow 3.9 per cent in 2023. This growth will be facilitated through the
government's endeavors and collaboration with the private sector that will continue to
unlock ample opportunities across diverse spheres coupled with the now substantial
foreign direct investment flow into the UAE and hydrocarbon demand.
nbf.ae - vi irrr vIr ;)..S.e _s v I EO. vAEsc :,:iljt,,411 alga 2JLi jo JL.n.i.LU 1 . 010001 .AAV E e oil ,...,1129.11 Op.*J1 ai4
National Bank of Fujairah PJSC PO Box 887, Fujairah, UAE Tel: 600 565551 Outside UAE: -971 450 78499 Fax: -971 9222 7992 nbf.ae
.7r 0.:31 isj4i Page 5 of 6
Conrccial Ilegistratior. No 43. -lean Offon FtiAVah
Classified as: NBF ExternalI
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AAccccoorrddiinnggllyy,, NNBBFF hhaass ssttaarrtteedd tthhee pprroocceessss ooff iimmpplleemmeennttiinngg RReessppoonnssiibbllee PPrrooccuurreemmeenntt aanndd
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NNBBFF hhaass bbeeeenn aawwaarrddeedd tthhee ''BBeesstt IInnnnoovvaattiioonn iinn TTrraaddee FFiinnaannccee'' aanndd ''MMoosstt IInnnnoovvaattiivvee TTrraaddiinngg
PPllaattffoorrmm'' aawwaarrddss aatt tthhee rreecceenntt MMEEAA FFiinnaannccee BBaannkkiinngg TTeecchhnnoollooggyy AAwwaarrddss;; aanndd tthhee ''BBeesstt
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''BBeesstt FFrraauudd && RRiisskk MMaannaaggeemmeenntt SSoolluuttiioonnss AAwwaarrdd'' aatt BBaannkkiinngg AAII aanndd AAnnaallyyttiiccss SSuummmmiitt &&
AAwwaarrddss 22002233 aanndd tthhee ''EElliittee QQuuaalliittyy RReeccooggnniittiioonn aawwaarrdd ffoorr 22002211 && 22002222'' bbyy JJPP MMoorrggaann..
SShhaarreehhoollddiinngg aanndd RRaattiinngg
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Sentiment: positive