UAE-based National Bank of Fujairah (NBF) said its full-year profit for 2011 surged 64.4 per cent to Dh280.9 million ($76.4 million) when compared to Dh170.9 million the previous year.

Announcing the results for the year ended December 31, 2011, NBF said its operating income grew by 14.1 per cent from Dh568 million in 2010 to Dh648.3 million.

The bank's exchange income, including derivative income, too surged witnessing a growth of 18.1 per cent to hit a record high of Dh50 million, it added.

NBF said its loan loss provision was Dh113.3 million in 2011 compared to Dh205.0 million the year before.

Results were driven by strong core business performance, effective asset and liability management and reduction in loan loss provision, said the UAE bank in a statement

The total assets surged 15.5 per cent to hit Dh14.9 billion in 2011 from Dh12.9 billion the year before, it added.

The bank said its return on average assets was 2 per cent compared to 1.4 per cent in 2010. The return on average equity was an impressive 14.4 per cent compared to 9.7 per cent the year before.

Commenting on the results, NBF chairman Sheikh Saleh Bin Mohammed Al Sharqi said the bank’s resilient performance is a resounding endorsement of its well-balanced growth strategy.

'Despite the prevailing market, NBF has managed to grow core earnings which, coupled with a sharper focus on balance sheet management and reduction in credit losses, helped produce one of the strongest sets of results in its operating history.'

Impressed by the results, the board has recommended a distribution of profits in the form of cash dividends of 10 per cent of the paid-up capital.

NBF's cost-to-income ratio of 39.4 per cent reflected the bank's investment in new growth initiatives, the  statement added. 
The bank's total loans and advances too grew 20.5 per cent to touch Dh10.5 billion from Dh8.7 billion the previous year.

Easa Saleh Al Gurg, KCVO, CBE deputy chairman said, “Backed by prudent policies and strong liquidity and capital positions, the Bank was able to grow its operating profit to a record high of Dh394.3 million and loan book by 20.5 per cent, which is significantly greater than the industry average.'

He pointed out that NBF was committed to the growth of the Fujairah and the UAE.

'Despite the wider global challenges, good opportunities still exist and we will continue to leverage them for the continued success of the Bank and the future of the UAE,' he added.-TradeArabia News Service