National Bank of Umm Al Quwain witnesses a 54% surge in net profit, reaching Dh255 million

National Bank of Umm Al Quwain (NBQ) reported a net profit of Dh255 million in Q2 of 2023, reflecting a 54 percent increase compared to Dh165 million in Q2 of 2022. The cost-to-income ratio is 20.58 percent, reflecting an 880 basis point year-on-year improvement, indicating the bank’s operational efficiencies and disciplined cost management.

The bank’s impairment coverage ratio, including collateral, improved to 254 percent as of June 30, 2023, from 183 percent as of December end. Total assets of the group reached Dh14.06 billion as of June 30, 2023, reflecting a 3 percent increase compared to Dec 2022. Bank maintained the deposits to net advances ratio prudently at 129 percent.

The capital adequacy ratio is 46 percent as of June 30, 2023, which is well over the minimum threshold stipulated by the Central Bank of the UAE in accordance with Basel III guidelines. This indicates the bank’s strong capital position and provides opportunities to leverage. The common equity tier I ratio is maintained strongly at 44.86 percent. The eligible Liquid Assets Ratio is 32.64 percent as of June 30, 2023, and the lending to stable resource ratio as of June 30, 2023, is 59.35 percent.

The bank’s non-performing ratio improved from 7.80 percent at December 2022 end to 9.46 percent which, indicates the bank’s focus on maintaining high-quality assets and prudent lending practices.

CEO Adnan Al Awadhi mentioned that the bank’s strategy for growth and profitability has remained steadfast, and the bank has taken several initiatives to achieve these objectives. He mentioned that “The outstanding financial results achieved in the second quarter of 2023 are a testament to the unwavering support of our stakeholders, the trust of our customers, and the collective efforts of our dedicated employees”.

He said that the bank remains committed to investing in cutting-edge technologies to enhance the digital capabilities of the bank along with developing innovative products and services to stay ahead of customer expectations.

He further added that “looking ahead together, we will navigate the challenges ahead and seize the opportunities to achieve sustainable growth and long-term success for NBQ. As we move forward, we must remain vigilant and adapt swiftly to the evolving market dynamics, while continuing to focus on key strategic priorities including growth and expansion”

International credit rating agencies, Moody’s and Capital Intelligence, have affirmed the bank’s financial ratings as Stable. Moody’s has assigned the National Bank of Umm Al Quwain (NBQ) a deposit rating of Baa2 with a BCA (baseline credit assessment) of ba2.rns.

Leave a Reply

Your email address will not be published. Required fields are marked *

Emiratisation Details For UAE Business Know About Corporate TAX-UAE