Bad debt dents Q4 figures for National Bank of Fujairah figures



National Bank of Fujairah said on Wednesday that its fourth-quarter profit fell by 33.8 per cent as the money set aside to cover bad debt more than doubled amid continuing financial stress related to the drop in oil prices.

Net profit fell to Dh70 million in the last three months of the year compared with Dh105m in the corresponding period of 2015, the bank said. Provisions rose by 114 per cent to Dh162m from Dh76m in the last three months of 2015.

Despite those losses, the bank said operating income rose by 15.1 per cent in the period, bolstered by gains in the lender’s core businesses.

Net interest income and net income from Islamic financing and investment activities advanced by 8.9 per cent in the fourth quarter to Dh218m compared with Dh200m in the corresponding period of 2015.

Meanwhile, net non-interest income rose by 27.7 per cent to Dh126m from Dh99m during the same time frame.

“The bank’s performance reflects the continuing focus on core business growth, proactive asset and liability management and disciplined cost management,” said Vince Cook, the bank’s chief executive.

“The robust operating performance enabled the bank to absorb the impact heightened by credit stress in the market, by making prudent provisions.”

The dramatic drop in the price of oil, which has lost as much as 70 per cent of its value since it began its decline in the summer of 2014, has reduced demand for loans and increased the level of debt defaults.

mkassem@thenational.ae

Follow The National's Business section on Twitter

COMPANY PROFILE

Company: Growdash
Started: July 2022
Founders: Sean Trevaskis and Enver Sorkun
Based: Dubai, UAE
Industry: Restaurant technology
Funding so far: $750,000
Investors: Flat6Labs, Plus VC, Judah VC, TPN Investments and angel investors, including former Talabat chief executive Abdulhamid Alomar, and entrepreneur Zeid Husban

COMPANY PROFILE

Company: Eco Way
Started: December 2023
Founder: Ivan Kroshnyi
Based: Dubai, UAE
Industry: Electric vehicles
Investors: Bootstrapped with undisclosed funding. Looking to raise funds from outside

COMPANY PROFILE

Company name: Alaan
Started: 2021
Based: Dubai
Founders: Parthi Duraisamy and Karun Kurien
Sector: FinTech
Investment stage: $7 million raised in total — $2.5 million in a seed round and $4.5 million in a pre-series A round

HER FIRST PALESTINIAN

Author: Saeed Teebi

Pages: 256

Publisher: House of Anansi Press

COMPANY PROFILE

Company name: Klipit

Started: 2022

Founders: Venkat Reddy, Mohammed Al Bulooki, Bilal Merchant, Asif Ahmed, Ovais Merchant

Based: Dubai, UAE

Industry: Digital receipts, finance, blockchain

Funding: $4 million

Investors: Privately/self-funded

COMPANY PROFILE

Name: SmartCrowd
Started: 2018
Founder: Siddiq Farid and Musfique Ahmed
Based: Dubai
Sector: FinTech / PropTech
Initial investment: $650,000
Current number of staff: 35
Investment stage: Series A
Investors: Various institutional investors and notable angel investors (500 MENA, Shurooq, Mada, Seedstar, Tricap)

World Cricket League Division 2

In Windhoek, Namibia - Top two teams qualify for the World Cup Qualifier in Zimbabwe, which starts on March 4.

UAE fixtures

Thursday February 8, v Kenya; Friday February 9, v Canada; Sunday February 11, v Nepal; Monday February 12, v Oman; Wednesday February 14, v Namibia; Thursday February 15, final


Latest
Most Read
Top Videos