Earnings Report

National Bank Of Fujairah

Q1 26

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.