National Bank Of Fujairah

1. Company Overview & Earnings Context

National Bank of Fujairah (NBF) is a UAE-listed commercial bank providing corporate, business, retail and Islamic banking services through a network of 15 branches across the UAE. During H1 2026, the bank delivered its strongest-ever half-year profit after tax, supported by resilient core banking operations, disciplined asset and liability management, and lower impairment charges despite ongoing geopolitical and macroeconomic uncertainty.

2. Financial Performance Snapshot

• Interest Income: AED 1.70 Billion

• Net Interest Income: AED 984.1 Million

• Operating Income: AED 1.38 Billion

• Operating Profit (before impairment & tax): AED 990.2 Million

• Net Impairment Losses: AED 233.1 Million

• Profit Before Tax: AED 757.1 Million

• Income Tax: AED 68.2 Million

• Net Profit: AED 688.9 Million

• Earnings Per Share (EPS): AED 0.267

Compared with H1 2025:

• Net interest income increased 6.3%.

• Operating income increased 1.6%.

• Operating profit declined 0.4%.

• Net impairment losses declined 24.0%.

• Profit before tax increased 10.1%.

• Net profit increased 10.2%.

• Earnings per share increased from AED 0.242 to AED 0.267.

3. Operational Highlights & Key Metrics

• Total Assets: AED 71.2 Billion

• Loans & Islamic Financing Receivables: AED 36.1 Billion

• Customer Deposits: AED 51.7 Billion

• Total Equity: AED 7.86 Billion

• Cash & Cash Equivalents: AED 8.0 Billion

• CASA Ratio: 44.1%

• Return on Average Equity (ROAE): 17.7%

• Return on Average Assets (ROAA): 2.0%

• Capital Adequacy Ratio (CAR): 17.4%

• Tier 1 Ratio: 16.3%

• CET1 Ratio: 16.3%

• Eligible Liquid Assets Ratio (ELAR): 31.5%

• Lending to Stable Resources Ratio: 63.8%

• Non-Performing Loan (NPL) Ratio: 3.94%

• Total Provision Coverage Ratio: 151.5%

4. Key Performance Drivers

NBF's strong H1 2026 performance was driven by higher net interest income, resilient operating income and a significant 24% reduction in impairment charges. The bank continued investing in digitalisation, governance, compliance and operational resilience, which contributed to higher operating expenses but supported its long-term strategy. Improved asset quality, prudent cost and risk management, and effective asset and liability management helped offset challenging macroeconomic conditions and delivered record half-year profitability.

5. Outlook & Forward Guidance

Management expects the UAE economy to remain resilient, supported by strong economic fundamentals and continued investment across key sectors. NBF intends to maintain its focus on sustainable growth through its four strategic pillars, supported by robust capital, healthy liquidity, improved asset quality and a well-diversified balance sheet while continuing to support customers and the UAE's long-term economic development.

6. Investor Takeaway

NBF delivered a record H1 2026 performance, achieving double-digit growth in profit before and after tax while strengthening its balance sheet and maintaining solid capital and liquidity buffers. Lower impairments, healthy asset quality and disciplined execution position the bank well to continue delivering sustainable growth despite an uncertain global operating environment.