{"id":10331,"date":"2024-10-29T09:01:55","date_gmt":"2024-10-29T09:01:55","guid":{"rendered":"https:\/\/nbfislamic.ae\/?p=10331"},"modified":"2025-11-03T12:13:15","modified_gmt":"2025-11-03T08:13:15","slug":"nbf-reports-39-3-profit-growth-to-aed-715m","status":"publish","type":"post","link":"https:\/\/nbfislamic.ae\/ar\/nbf-reports-39-3-profit-growth-to-aed-715m\/","title":{"rendered":"NBF reports 39.3% profit growth to <\/span> 715M."},"content":{"rendered":"
\n

29 October 2024:<\/strong> NBF is pleased to announce its results today for the nine-month period ended 30 September 2024.<\/p>\n<\/div>\n

<\/div>\n

Highlights<\/strong>:<\/strong><\/p>\n

    \n
  • NBF recorded year-on-year growth of 39.3% to close the nine-month period at a net profit before tax<\/strong> of <\/span> 715 million compared to <\/span> 513.2 million in the corresponding period of 2023. Further, NBF posted a net profit after tax<\/strong> of <\/span> 650.4 million for the nine-month period with a corporate tax charge of <\/span> 64.6 million. On the back of a strong Q3 2024 performance, NBF posted a net profit before tax of <\/span> 230.1 million in the third quarter of 2024, a rise of 27.1% over the corresponding quarter of 2023. These results demonstrate the bank\u2019s continued momentum on selective quality business growth and the ability to initially maintain margins in a falling interest rate environment. Buoyant market conditions supported by UAE government initiatives, improvement in impairment provisions, and careful management of costs, in what continues to be an uncertain global environment exacerbated by geopolitical tensions, all contributed to this robust position.<\/li>\n
  • Underpinned by the higher revenue generation, NBF posted an operating profit<\/strong> of <\/span> 1.3 billion for the nine-month period, a rise of 7.6% compared to <\/span> 1.2 billion in the corresponding period of 2023; and up 7.5% for the three-month period ended 30 September 2024 over the corresponding period of 2023.<\/li>\n
  • Operating income<\/strong> reached <\/span> 1.8 billion, up 8.4% compared to <\/span> 1.7 billion in the corresponding period of 2023; and up 8.9% for the three-month period ended 30 September 2024 over the corresponding period of 2023 reflecting the focus on key business segment growth and proactive asset and liability management. Principal contributions include:\n
      \n
    • Net interest income and net income from Islamic financing and investment activities<\/strong> grew 5.6% to <\/span> 1.33 billion for the nine-month period ended 30 September 2024 compared to <\/span> 1.26 billion in the corresponding period of 2023.<\/li>\n
    • It was up 3.0% for the three-month period ended 30 September 2024 compared to the corresponding period of 2023.<\/li>\n
    • Net fees, commission and other income <\/strong>rose 15.4% to <\/span> 358.1 million for the nine-month period ended 30 September 2024 compared to <\/span> 310.4 million in the corresponding period of 2023. It was up 29.0% for the three-month period ended 30 September 2024 compared to the corresponding period of 2023.<\/li>\n
    • Foreign exchange and derivatives income<\/strong> experienced a good growth of 16.6% compared to the corresponding period of 2023, reaching <\/span> 139.1 million for the nine-month period ended 30 September 2024. It was up 21.8% for the three-month period ended 30 September 2024 compared to the corresponding period of 2023.<\/li>\n
    • Income from investments and Islamic instruments<\/strong> marked a significant bounce back. In addition, the fair value gain on fair value through profit or loss (FVTPL) and fair value through other comprehensive income (FVOCI) investment portfolio also improved by <\/span> 74.3 million during the nine-month period ended 30 September 2024.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n
        \n
      • Operating expenses<\/strong> increased by 10.3%, reflecting NBF\u2019s investments in its businesses, systems, infrastructure and people. These investments include a set of digitalization initiatives to further enhance our focus on exceptional customer service, innovation and competitiveness in line with the changing market demands. Further, NBF\u2019s cost-to-income ratio stood at 30.5% compared to 30.0% in the corresponding period of 2023, remaining in the mid-industry range and reflecting on-going cost discipline.<\/li>\n
      • NBF maintained its policy of prudent and transparent recognition of problem accounts whilst taking into consideration the new credit risk standards being introduced by the Central Bank of the UAE. NBF booked net impairment provisions<\/strong> of AED 555.7 million for the nine-month period ended 30 September 2024 compared to <\/span> 667.6 million in the corresponding period of 2023, a reduction of 16.8%. The total provision coverage ratio stood at 114.6% compared to 120.2% as at 31 December 2023. The NPL ratio<\/strong> stood at 5.3% compared to 4.9% as at 31 December 2023. From an overall improvement of asset quality perspective, the combined IFRS 9 stage 2 and 3 mix<\/strong> reduced to 11.4% compared to 12.2% as at 31 December 2023.<\/li>\n<\/ul>\n
          \n
        • Total assets<\/strong> rose by 13.2% to reach <\/span> 58.5 billion compared to <\/span> 51.7 billion at 2023 year-end, up by 17.1% from 30 September 2023.<\/li>\n
        • Loans and advances and Islamic financing receivables<\/strong> rose by 10.5% to reach <\/span> 30.8 billion compared to <\/span> 27.9 billion at 2023 year-end, up by 11.2% from 30 September 2023.<\/li>\n
        • Investments and Islamic instruments<\/strong> increased by 13.9% to reach <\/span> 9.3 billion compared to <\/span> 8.1 billion at 2023 year-end, up by 25.1% from 30 September 2023; optimizing a portion of liquidity towards a high-quality investment book to augment value and return.<\/li>\n
        • Customer deposits and Islamic customer deposits<\/strong> increased by 8.5% to reach <\/span> 41.8 billion compared to <\/span> 38.6 billion at 2023 year-end, up by 12.4% from 30 September 2023. Current and Saving Accounts (CASA) deposits stood at 40% of total customer deposits, balancing the impact of fixed-term deposit products.<\/li>\n
        • Ample liquidity has been maintained with lending to stable resources ratio<\/strong> (LSRR)<\/strong> at 67.3% (2023: 67.4%) and eligible liquid assets ratio (ELAR)<\/strong> at 30.3% (2023: 28.3%), well ahead of Central Bank of the UAE\u2019s minimum requirements.<\/li>\n
        • The capital adequacy ratio (CAR) <\/strong>stood at 21.3% (Tier 1 ratio of 20.1% and CET 1 ratio of 14.3%) compared to 19.0% (Tier 1 ratio of 17.8% and CET 1 ratio of 14.2%) at 2023 year-end; exceeding regulatory requirements and ensuring a robust financial foundation. This is primarily on account of the successful issuance of the Additional Tier 1 capital securities (\u201cAT1 capital\u201d), amounting to US$ 275 million (<\/span> 1.01 billion)<\/strong> dated 16 September 2024, as part of strengthening NBF\u2019s capital structure supporting its business and operational strategy and refinancing of the existing AT1 capital securities of US$ 350 million (<\/span> 1.286 billion). The US$ 350 million AT1 capital was called on 16September 2024 and settled on the first call date i.e. 01 October 2024 post the quarter-end. Had this settlement been undertaken within September 2024, the total capital adequacy ratio would have still been strong at 18.0%. The new issuance has been privately placed with the Government of Fujairah. The capital instruments allow for the mandatory conversion into ordinary shares, at a ratio of <\/span> 2.85:1, within two years of this issuance.<\/li>\n
        • Return on average assets<\/strong> was 1.57%, up from 1.40% for the corresponding period in 2023. Had the afore-mentioned AT1 capital settlement been undertaken within September 2024, the return on average assets would augment to 1.59%.<\/li>\n<\/ul>\n
            \n
          • Return on average equity<\/strong> was 11.87%, up from 11.24% for the corresponding period in 2023. Had the afore-mentioned AT1 capital settlement been undertaken within September 2024, the return on average equity would surge to 13.01%.<\/li>\n
          • NBF\u2019s rating was re-affirmed at A- by Capital Intelligence, with a stable outlook, highlighting the bank\u2019s underlying strength, prudent risk management and resilience.<\/li>\n<\/ul>\n

             <\/p>\n

            Dr. Raja Easa Al Gurg, Deputy Chairperson said:<\/strong><\/p>\n

            \u201cNBF\u2019s impressive set of results underscore its relentless execution of strategic objectives, the resilience in its core business and its ability to perform across key business segments in what continues to be an uncertain global environment, exacerbated by geopolitical tensions and a falling interest rate environment.<\/p>\n

            With the benefit of the buoyant local market momentum spurred by solid domestic activity in the tourism, trade, construction and financial services sectors, the robust capital position and improving overall asset quality, we will continue building on our steadfast dedication to service excellence, driving digital adoption and enhancing shareholder value, placing us well for sustained progress and agility throughout the rest of 2024 and beyond.\u201d<\/p>\n

             <\/p>\n

            For further information, please contact:<\/strong><\/p>\n

            Strategic Marketing and Communications Department
            \nE-mail: CorpComm@nbfislamic.ae
            \nTelephone: +971 4 507 8351 and +971 4 507 8576<\/p>","protected":false},"excerpt":{"rendered":"

            NBF is pleased to announce its results today for the nine-month period ended 30 September 2024.<\/p>","protected":false},"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_lmt_disableupdate":"no","_lmt_disable":"","footnotes":""},"categories":[83],"tags":[88],"years":[61],"class_list":["post-10331","post","type-post","status-publish","format-standard","hentry","category-pr","tag-press-release","years-61"],"pp_statuses_selecting_workflow":false,"pp_workflow_action":"current","pp_status_selection":"publish","pp_force_visibility":null,"pp_subpost_visibility":null,"pp_inherited_force_visibility":null,"pp_inherited_subpost_visibility":null,"pp_post_mime_type":"","acf":[],"aioseo_notices":[],"modified_by":"Amna Alyassi","jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/nbfislamic.ae\/ar\/wp-json\/wp\/v2\/posts\/10331","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/nbfislamic.ae\/ar\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/nbfislamic.ae\/ar\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/nbfislamic.ae\/ar\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/nbfislamic.ae\/ar\/wp-json\/wp\/v2\/comments?post=10331"}],"version-history":[{"count":4,"href":"https:\/\/nbfislamic.ae\/ar\/wp-json\/wp\/v2\/posts\/10331\/revisions"}],"predecessor-version":[{"id":31528,"href":"https:\/\/nbfislamic.ae\/ar\/wp-json\/wp\/v2\/posts\/10331\/revisions\/31528"}],"wp:attachment":[{"href":"https:\/\/nbfislamic.ae\/ar\/wp-json\/wp\/v2\/media?parent=10331"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/nbfislamic.ae\/ar\/wp-json\/wp\/v2\/categories?post=10331"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/nbfislamic.ae\/ar\/wp-json\/wp\/v2\/tags?post=10331"},{"taxonomy":"years","embeddable":true,"href":"https:\/\/nbfislamic.ae\/ar\/wp-json\/wp\/v2\/years?post=10331"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}