National Bank of Fujairah (NBF) disclosed a net profit after tax of AED850.1 million ($231.44 million) for 2024, marking a substantial increase compared to the previous year. This announcement coincided with the bank’s release of its financial results for the year that concluded on December 31, 2024, where it showcased record profitability fueled by strong business growth, efficient cost management, and enhanced asset quality.
Operating profit reaches all-time high
The bank‘s operating profit climbed to an all-time high of AED1.62 billion ($441 million), indicative of improved revenue generation across essential business segments. Net profit before tax soared 28.9 percent year-on-year to AED934.8 million ($254.5 million), highlighting the bank’s resilience in a dynamic operating landscape, as stated in a press release from the bank.
“NBF recorded its best ever operating income of AED2.4 billion, up 6.7 percent over 2023 reflecting enhanced focus on key business segment growth, proactive asset and liability management and the bank’s long-standing customer centric approach that off-set the impact from the reducing interest rates.”
Growth in net interest income and Islamic financing
Net interest income and net income from Islamic financing and investment activities increased by 4.8 percent to AED1.79 billion compared to AED1.70 billion in 2023.
Increase in operating expenses and investment in future growth
Operating expenses rose by 15.9 percent, mirroring NBF’s investments in its businesses, systems, infrastructure, and personnel. These investments encompass a series of digitalization initiatives designed to further enhance the bank’s focus on exceptional customer service, innovation, and competitiveness in response to evolving market demands. Additionally, NBF’s cost-to-income ratio was recorded at 33.3 percent compared to 30.6 percent in 2023, remaining within the mid-industry range and reflecting investments made in alignment with the bank’s future growth strategy.
Commitment to client partnership
Sheikh Saleh Bin Mohamed Bin Hamad AlSharqi, chairman, commented on the results: “We are delighted to achieve a consecutive record year of performance that underscores the bank’s resilience and effectiveness of the business and operational strategies in place contributing towards sustainable improvement. This solid set of results are particularly a source of pride as we improved our previous year’s record operating and net profit performance successfully navigating uncertainties surrounding the global economy and the region featured by heightened geopolitical conditions and conflicts as well as economic headwinds caused by interest rate changes, supply chain and tariff changes and evolving regulations. Throughout 2024, we were also honoured with a number of prestigious industry awards and endorsements, further underscoring NBF’s well embedded culture of exceptional financial service and client partnership.
“Driven by its diversification efforts, strong trade relations, thriving tourism sector and continued economic expansion, the UAE’s economy is forecast to achieve 6.7 percent growth in 2025, a substantial increase from 3.8 percent in 2024. Benefitting from this market momentum, NBF is committed to building on its strong platform for future growth while preserving the Group’s capital strength. Thanks to the Board’s support in the ongoing investment in the NBF brand, we continue to make progress in uplifting the franchise for long-term sustainability and true value creation,” AlSharqi further noted.
Consistent performance across segments
Dr. Raja Easa Al Gurg, deputy chairperson, stated: “We are pleased with these robust set of results delivered by NBF in 2024. This is an outstanding achievement that clearly illustrates the underlying strength of the Group’s core activities, solid revenue growth, good performance across key business segments and the quality of the work undertaken to maintain the upward trajectory. Supported by a well-diversified balance sheet, robust capital adequacy, sound improvement in overall asset quality and enhanced integration of advanced technology into NBF’s services, the Group was able to achieve these results; whilst working towards the highest standards of risk management practices.”
