Dubai’s NBF posts 87% dip in net profit for first nine months of 2020

Dubai’s NBF posts 87% dip in net profit for first nine months of 2020

Dubai's National Bank of Fujairah (NBF) posted a net profit of Dhs66.3m for the nine month period ended September 30, 2020, down 87 per cent compared to Dhs511.6m from the corresponding period of 2019 after absorbing substantial increase in provisions.

Its operating profit of Dhs707.3m for Q1-Q3 2020, plummeted from Dhs862.3m during the same period last year.

Meanwhile, the lender posted operating income of Dhs1.1bn, down 17.1 per cent compared to Dhs1.3bn from a year-earlier period, reflecting the difficult operating environment.

Declining interest rates, sluggish economic activity and contraction in the loan book impacted the operating performance of the bank, a statement said.

Net interest income and net income from Islamic financing and investment activities and net fees, commission and other income stood at Dhs722.1m and Dhs222.3m respectively compared to Dhs859.4m and Dhs300.7m