National Bank of Fujairah reported Dh280.9 million net profit for 2011, up 64.4 per cent from Dh170.9 million in 2010. The bank attributed the profit growth to strong core business performance, effective asset and liability management and reduction in loan loss provisions. Loan loss provisions for the full year were Dh113.3 million compared to Dh205 million in 2010. Operating income grew by 14.1 per cent from Dh568 million in 2010 to Dh648.3 million in 2011. \"The bank witnessed sustained improvement of operating performance. 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,\" said Eisa Saleh Al Gurg, Deputy Chairman. The bank reported a cost-to-income ratio of 39.4 per cent compared to 35.6 per cent in 2010. Strong capital adequacy and advances-to-deposits ratios were maintained last year. While the overall capital adequacy was at 20.3 per cent at the end of the year, the bank had a tier-1 ratio of 12.8 per cent. The advances-to-deposits ratio was at 84.8 per cent, well ahead of Central Bank\'s minimum requirements. \"Despite the prevailing market, the bank 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,\" Shaikh Saleh Bin Mohammad Al Sharqi, Chairman of the bank, said in a statement. In 2011 NBF\'s total assets grew 15.5 per cent to Dh14.9 billion from Dh12.9 billion at the end of 2010. The bank\'s total loans and advances were up 20.5 per cent to Dh10.5 billion last year from Dh8.7 billion in 2010. The bank reported a return on average assets of 2 per cent last year compared to 1.4 per cent in 2010 while its return on average equity was 14.4 per cent compared to 9.7 per cent in the previous year.