NBF announced its results for the six month period ended 30 June 2019, posting record net profit of AED 357.1 million for the six month period ended 30 June 2019, a rise of 15.1% over the corresponding period of 2018.
NBF also recorded its best-ever half-year operating profit of AED 567.0 million which increased by 9.1% compared to AED 519.9 million in the corresponding period of 2018 driven by a focus on steady quality business growth.
Operating income for the six month period was AED 841.5 million which saw a growth of 9.5% compared to the corresponding period of 2018. Operating expenses increased by 10.3%, reflecting NBF’s investments in businesses, infrastructure and digitalisation initiatives to provide exceptional customer service and enhanced experience in line with the changing market demands.
NBF maintained net impairment provisions of AED 209.9million for the six month period compared to AED 209.7 million in 2018. Total provision coverage ratio improved to 108.6% from 102.0% as at 31 December 2018. The NPL ratio improved to 4.8% compared to 5.1% as of 31 December 2018.
Customer deposits and Islamic customer deposits depicted a growth of 1.7% at AED 31.0 billion compared to AED 30.5 billion at the 2018 year-end, up by 10.0% from 30 June 2018.
Assets reached AED 42.5 billion; a rise of 6.9% from AED 39.8 billion at 2018 year-end, up by 11.7% from 30 June 2018. Shareholders’ equity rose 5.1% from AED 5.1 billion at 2018 year-end to AED 5.4 billion, up by 10.5% from 30 June 2018.
H.E. Sir Easa Saleh Al Gurg, KCVO, CBE Deputy Chairman said:
“We are pleased to see record half-year results, particularly in the face of low economic activity in the market. It is encouraging that NBF is able to maintain its growth momentum through a clear focus on its core business, effective execution of its business and operational strategy, enhanced return on capital and differentiation through exceptional customer service.
We are delighted to see the growing market recognition during the quarter; where NBF ranked second in the Top CEO Award 2019 by Mediaquest in the category for Top 10 Banking Companies in the GCC and the first in the banking sector in the UAE. NBF also won the International Employee Engagement Award at the International Business Excellence Awards 2019. NBF will continue to uphold the highest standards of compliance, internal control, and risk management practices commensurate with the new regulatory changes, digitalization initiatives, and information and cybersecurity requirements.
As an established franchise with an engaged and enabled workforce, we are optimistic that the Group will continue to perform impressively throughout the course of the year adding value to the UAE economy as a whole.”