National Bank of Fujairah (NBF) has recorded a net profit of Dh125.2 million ($34 million) for the first half, a 51 per cent increase compared to Dh83 million during the same period last year.

The results were driven by strong core business performance, effective balance sheet management and reduction in loan loss provision. The loan loss provision was Dh62.5 million compared to Dh97.2 million in the corresponding period of 2010, the bank said.

Operating income increased by 8.1 per cent to Dh301.2 million compared to Dh278.5 million in the corresponding period of 2010. NBF’s net interest income of Dh198.9 million registered a growth of 13.6 per cent over last year’s Dh175.1 million.

“We are pleased that these results are starting to show the progress the bank is making. They clearly indicate the success of our strategy of sustained core business growth in the UAE,” said Easa Saleh Al Gurg, deputy chairman.

“Our focus on financial stability helped the bank emerge much stronger from the financial crisis and our sustained market presence undoubtedly contributed to the bank’s solid half year profit growth of 50.9 per cent. Going forward, the bank will continue to leverage its strong liquidity and capital adequacy positions to capitalise on new business opportunities in the UAE,” he said. – TradeArabia News Service