National Bank of Fujairah (NBF), a full services corporate bank in the UAE, has announced a first quarter net profit of Dh64.5 million ($17.5 million),  up 27.3 per cent from Dh50.6 million last year.

Announcing the results, NBF said the bank's operating income grew by 18.3 per cent and operating profit by 12.7 per cent, while the exchange income, including derivative income, saw a growth of 25 per cent.

The bank's cost-to-income ratio of 39.2 per cent reflects ongoing investment in new initiatives and operating platform to enhance customer service experience, it added.

According to NBF, these results were driven by strong core business performance and effective asset and liability management. The loan loss provision was seen at Dh43.4 million compared to Dh45.1 million in the corresponding period of 2011.

In his comments, Easa Saleh Al Gurg, the NBF deputy chairman said, "We are pleased to see consistent and resilient business growth which has provided the bank with a solid start to 2012 despite challenging market conditions."

"The bank recorded a 27.3 per cent profit growth, thus reflecting strong core business performance, prudent management practices and effective asset and liability management," he added.

NBF's strong capital adequacy and advances-to-deposits ratios were maintained at  20.6 per cent (Tier 1 ratio of 13.2 per cent) and 87 per cent respectively, well ahead of Central Bank minimum requirements, he stated.

The bank's total assets rose 4.7 per cent to Dh15.6 billion from Dh14.9 billion at year end and up 10.9 per cent from March 31. The loans and advances of Dh11 billion were up 5.2 per cent from Dh10.5 billion at year end and up 22.8 per cent from March 31.

Al Gurg said the bank's deposits hit Dh10.9 billion, up 5.1 per cent over Dh10.3 billion at year end and up 19.2 per cent from  March 31.

"The bank will continue to leverage its strong liquidity and capital position to capitalise on opportunities in the UAE for further success," he added.-TradeArabia News Service