NBQ reports 9% increase in net profits for the first nine months of 2017

The National Bank of Umm Al Qaiwain (NBQ) has reported a 9 per cent increase in net profits for the first nine months of 2017 to AED285.9 million compared to AED261.7 million in the same period in 2016.

Improved operating performance was driven by the increase in interest income, higher fee income and effective recovery strategies, the bank said in a statement.

Interest income and income Islamic financing products reported a growth of 5 per cent as compared to the same period last year. Fee and commission income increased by 6 per cent. Cost to income ratio stood at 32 per cent during the first 9 months, reflecting the bank’s operational efficiencies and disciplined cost management, the statement added.

Customer deposits marked a 5 per cent increase compared to year-end 2016.

The bank’s total assets stood at AED14.05 billion at the close of the third quarter compared to AED13.55 billion at the year-end 2016.

Net provision charge for loan impairments for the first nine months of 2017 decreased by 79 per cent as compared to the same period last year. Asset quality improved as non-performing loans (NPL) ratio improved to 4.3 per cent compared to 6.9 per cent at the year-end 2016 and 8.1 per cent for the first nine months of 2016.