5 Aug 2018
Report for the period of six months ending 30th June 2018
National Bank of Umm Al-Qaiwain has marked an increase of 13% in the net profit to AED 237.79 Million for the six months of the year 2018 as compared to AED 210.59 Million during the same period last year. Operating Income for the six months ending June 30th June 2018 grew by 31% compared to similar period in 2017 driven by increased interest income, coupled with the effective recovery strategies.
Interest Income and Income from Islamic financing products reported a growth of 13% as compared to the similar period last year. Net Interest Income (NII) also reported a growth of 12% as compared to the similar period last year and 16% growth during second quarter of 2018 compared to second quarter of 2017.
Fee and commission income recorded an increase of 18% as compared to similar period last year. Cost to Income ratio stood at 21% during six months, reflecting the bank’s operational efficiencies and disciplined cost management.
NPL ratio improved to 6.29% as at the end of June 2018. The Bank holds collateral and specific provision to the tune of 146% of the non-performing loans, which reflects prudent management and effective monitoring of our loans and advances portfolio.
Other Major Highlights As At 30th June 2018
- Total assets stood at AED 14.63 Billion.
- Deposits to advances ratio is maintained prudently at 107%.
- Capital Adequacy Ratio of 32.76% as at 30th June 2018 continues to be well over the minimum threshold stipulated by the UAE Central Bank in accordance with Basel III guidelines. This provides opportunities to leverage. Tier I ratio is maintained strongly at 31.61%.
- Share Capital is AED 1.85 Billion and total Shareholders’ equity is AED 4.25 Billion.
- Bank has maintained high liquidity with stable resources to advances ratio of 140% as at 30th June 2018, while the Central Bank of UAE has set 100% as the minimum limit.
- Net Stable funding ratio as per Basel III guidelines stood at 115.24%, compared to minimum stipulated ratio of 100%. This will enable the bank to prudently expand its lending portfolio.
- Bank declares in response to SCA circular 383/2018 dated 19/06/2018 that there are no exposure on Abraaj Capital.