Management
discussion and
Analysis Report
For the Quarter ended
30th Jun 2023FFiinnaanncciiaall PPeerrffoorrmmaannccee SSuummmmaarryy
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7
Financial Performance Summary
• National Bank of Umm Al-Qaiwain has recorded a net profit of AED 255 million for Q2 of 2023.
• Net profit has increased by 54% compared to AED 165 million for Q2 of 2022 due to improving external environment and effective cost optimization strategies.
• Cost-to-income ratio is 20.58% compared to 29.38% in Q2 of 2022, improved by 880 basis points year on year, which reflect the Bank’s operational
efficiencies and disciplined cost management.
• Impairment coverage ratio including collateral improved to 254% as of 30 June 2023 from 183% as of December end.
• Total assets of the group reached to AED 14.06 billion as of 30 June 2023, up by 3% compared to Dec 2022, while maintaining deposits to net advances ratio
prudently at 129%.
• Capital Adequacy Ratio stood at 46.00% as of 30 June 2023, 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. Common Equity Tier I ratio is maintained strongly at 44.86%.
• Bank has maintained Eligible Liquid Assets Ratio 32.64% as of 30 June 2023, Lending to Stable Resource Ratio as of 30 June 2023 stood at 59.35%.
• Non- Performing ratio improved to 7.80% from 9.46% at December 2022 end.Chief Executive Officer
Mr. Adnan Al Awadhi said, the outstanding financial results achieved in the second quarter of 2023 are a testament to
the collective efforts of our dedicated employees, the trust of our customers and the unwavering support of our
stakeholders. We will continue to invest in cutting-edge technologies to enhance our digital capabilities, develop
innovative products and services and stay ahead of customer expectations.
He further added, looking ahead together, we will navigate the challenges ahead and seize the opportunities to achieve
sustainable growth and long-term success for NBQ. As we move forward, we must remain vigilant and adapt swiftly to
the evolving market dynamics, while continuing to focus on key strategic priorities including growth and expansion.Credit Rating
\
i
Moody’s Rating Capital Intelligence Rating
Bank Deposits-long term (Local Currency ) Baa2 Foreign Currency Rating-short term A2
Bank Deposits-short term (Foreign Currency ) 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 Stable
#
NThank you

Sentiment: positive