UAE Stock Talks
Back to Home
Back

Earnings Report

National Bank Of Fujairah

Q1 26 NEUTRAL LOW Impact

1. Company Overview & Earnings Context

National Bank of Fujairah (NBF) reported its Q1 2026 results, delivering a strong and resilient performance, with record profitability supported by core business strength and improved asset quality.

2. Financial Performance Snapshot

  • Operating income: AED 701.1M (+3.8% YoY)

  • Operating profit: AED 495.8M (−1.3% YoY)

  • Profit before tax: AED 376.2M (+11.6% YoY)

  • Net profit after tax: AED 342.3M (+11.6% YoY)

  • ROAE: 17.4% (vs 18% YoY)

  • ROAA: ~2.0% (stable YoY)

  • Cost-to-income ratio: 29.3% (vs 25.6% YoY)

  • Net impairment losses: AED 119.5M (−27.7% YoY)

3. Operational Highlights & Key Metrics

  • Total assets: AED 68.8B (+6.8% YoY)

  • Loans & advances: AED 37.2B (+8.7% YoY)

  • Customer deposits: AED 49.7B (+4.5% YoY)

  • CASA ratio: 44.7%

  • NPL ratio: 3.99% (stable vs 3.95%)

  • Provision coverage ratio: 145.2% (improved vs 139.0%)

  • Capital adequacy ratio (CAR): 16.6% (well above regulatory levels)

4. Key Performance Drivers

NBF’s Q1 performance was driven by steady growth in operating income and a significant reduction in impairment charges, as highlighted across pages 1–3.

While operating income grew modestly (+3.8% YoY), profitability improved due to lower cost of risk (−27.7% YoY impairments), reflecting better asset quality and provisioning discipline.

However, higher operating expenses (+18.7% YoY), driven by investments in technology, governance, and business resilience, led to a slight decline in operating profit and an increase in the cost-to-income ratio.

Overall, the bank’s performance reflects balanced growth with improved risk management, supported by strong balance sheet expansion and capital position.

5. Outlook & Forward Guidance

Management highlighted a resilient outlook, supported by strong liquidity, capital adequacy, and disciplined risk management. The bank remains focused on long-term sustainable growth, digital investments, and maintaining asset quality, while navigating macroeconomic uncertainties.

6. 🧾 Investor Takeaway

NBF delivered solid profit growth driven by lower impairments and strong balance sheet expansion, despite rising operating costs impacting efficiency.