National Bank of Fujairah records profit

The results for the first quarter have been announced by the National Bank of Fujairah where a net profit of Dh30.3 million has been recorded. In previous year 2008, the profits have been recorded of AED 55.4 million. This decline in profit reflects the current economic slowdown in the world. The Deputy Chairman of the National Bank of Fujairah, HE Sir Easa Saleh Al Gurg said this is a solid set of results in one of the most challenging economic environments we have ever seen. Following the full year loss of 2008, these results mark a welcome return to profitable operations. The Bank will continue its prudent approach in the unprecedented market conditions and will pursue selective opportunities for achieving steady growth and adding value for its shareholders."

Despite of the bank’s liquidity management, the cost of liquidity has been higher in the market and thus, laid a huge impact on the net profit and income. If we compare this years figures of net interest and foreign exchange income with the previous year 2008, the foreign exchange and net interest income has been increased by 1.5 and 2.2 per cent. At 31st December 2008, the investment portfolio was reduced from Dh227.4m to Dh144.3m. Therefore, only a modest loss of investment has been recognized.

If we look at the total assets of the NBF it stood up at Dh11.9 billion from Dh12.8 billion at the end of the year. The balance sheet of the bank shows reduction thereby, reflecting the risk craving of the bank and such financial institutions. This profit which the NBF recorded was for the three month period.