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Dubai: National Bank of Fujairah (NBF) has announced a profit of Dh153.5 million for the half-year period ended 30 June 2008.
The six-month result was Dh0.9 million above the corresponding half-year profit in 2007, but NBF's strong core business performance coupled with the appreciation of investment fair values, helped bridge a 31 per cent deficit in the first quarter earnings of 2008.
For the half year, core-operating income, excluding investment fair values, showed a growth of 40.5 per cent compared to the corresponding half of 2007.
Core businesses maintained strong growth on the back of a robust growth in volumes despite pressure on margins due to excess domestic dirham liquidity and lower inter-bank interest yields.
Net interest income rose by 34.0 per cent and fee income grew by 43.5 per cent. Foreign exchange income doubled to Dh19.6 million compared to the corresponding half of 2007.
Operating expenses increased by 27.9 per cent largely due to investment in governance and infrastructure and strengthening of human capital.
Total assets grew by 32.3 per cent over 30 June 2007 to Dh12.5 billion. Total shareholders' equity as of 30 June 2008 stood at Dh1.8 billion and the bank's capital adequacy ratio at that date stood at 12.9 per cent against the Central Bank minimum of 10 per cent. NBF has also obtained approval from the UAE Central Bank for a Tier 2 capital issue later this year.
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