The National Bank of Fujairah (NBF) more than doubled its net profit in 2023, fuelled by high interest rates and lower impairment provisions.
The UAE-based bank’s net profit surged 113.0% in 2023 to reach a record Dh725.1 million, from an operating income of Dh2.3 billion. Its total comprehensive income for the year was Dh790.4 million up 223.8% compared to Dh244.1 million in 2022.
The bank recorded its highest-ever operating profit in 2023, amounting to Dh1.6 billion, a rise of 28.1% compared to Dh1.2 billion in 2022. The growth was underpinned by higher net interest income and net income from Islamic financing, as well as investment activities and fee income.
The bank’s impairment losses fell to Dh859 million, while its net interest income and net income from Islamic financing and investment activities rose by 39.6% to Dh1.7 billion. Income from foreign exchange and derivatives, however, dropped to Dh164.5 million.
In light of the positive results, NBF’s board of directors recommended cash dividends of 10%, higher than the previous year’s 6%. The board also proposed bonus shares of 5%.
“2023 was a record year for NBF,” said H.H. Sheikh Saleh Bin Mohamed Bin Hamad Al Sharqi, NBF Chairman. “Despite the ongoing challenges and uncertainty presented by heightened global geopolitical risks, economic headwinds with elevated levels of inflation, and climate change, NBF was successful in producing its best-ever operating and net performance.”
