National Bank of Fujairah reports 113% jump in 2023 net income

National Bank of Fujairah reported a 113% y-o-y increase in net income in 2023, reaching a record, according to an ADX disclosure. The bank also achieved record-breaking operating revenues of AED 2.3 bn, up 25.8% y-o-y.

Net interest income and net income from Islamic financing and investment activities rose 39.6% y-o-y to AED 1.7 bn. Net fees, commission, and other income rose 6.2% y-o-y to AED 417.8 mn. However, foreign exchange and derivatives income decreased, standing at AED 164.5 mn, down from AED 181.4 mn in 2022.

The why: The bank attributes its performance last year to “resilience in [its] core business,” strategic business expansion, a favorable high-interest rate environment, effective investment portfolio management, and cost control, according to the statement. The bank’s total revenues surged 223.8% to AED 790.4 mn during the year.

Dividends: The board has suggested a dividend distribution equivalent to 15% of the paid-up capital, a significant increase from the 6% in 2022. This proposed distribution comprises 10% in cash dividends (compared to none in 2022) and 5% in bonus shares (compared to 6% in 2022).

Looking ahead: “The Board’s strategic focus continues to be on generating long-term sustainable returns and benefitting from the innovative opportunities that are arising from the emerging opportunities in environmental, social and governance [ESG] matters, which will enhance further growth in 2024 and beyond,” said the bank’s chairman, Sheikh Saleh Bin Mohamed Bin Hamad Al Sharqi.

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