UNITED ARAB EMIRATES:  National Bank of Umm Al Quwain (NBQ) has reported a net profit of AED 385 million for the 9-months period ended on 30 Sep 2023, reflecting a 48% increase compared to the AED 260 million for the 9-month period of 2022. This impressive result testifies to the bank’s commitment to operational efficiency and disciplined cost management.

“We are delighted to report a record profit for the 9-month period ended on Sep 2023,” said NBQ CEO, Mr. Adnan Al Awadhi. “The outstanding financial results achieved for the 9-month period ending on 30 Sep 2023 demonstrate that our profitability margins have increased. This is a result of the prudent cost management practices that we have undertaken, innovative revenue streams that are pursued by the bank and also the efforts made in streamlining internal processes. We are proud of our achievements and look forward to continuing to serve our customers with the highest standards of service.”

Mr. Adnan Al Awadhi mentioned that “Investing in technology has contributed to improved operational efficiencies and reduced costs. We have continued to prioritize exceptional customer service, thereby leading to high levels of customer satisfaction and loyalty.”

He further added, “As we move forward, our focus remains on innovation, customer-centricity, and sustainable growth. We are optimistic about the future and are exploring new opportunities to further strengthen our position in the market, confident that with our collective efforts and strategic initiatives, we will continue to thrive in the coming years.”

Bank’s cost-to-income ratio is 21%, compared to 29% for the 9-months period ending in September 2022, thereby improving by 856 basis points year on year. This reflects bank’s operational efficiencies and disciplined cost management.

Impairment coverage ratio, including collateral, improved to 257% as of 30 Sep 2023, up from 183% as of 31 December 2022. Total assets of the group reached AED 14.39 billion as of 30 Sep 2023, marking an increase from 13.61 billion as of 31 December 2022. Bank prudently maintained the deposits to net advances ratio at 130%.

Capital Adequacy Ratio stood at 46.34% as of 30 Sep 2023, comfortably exceeding the minimum threshold stipulated by the Central Bank of the UAE in accordance with Basel III guidelines. Common Equity Tier I ratio is maintained strongly at 45.20%. Bank has also maintained the Eligible Liquid Assets Ratio at 28% as of 30 Sep 2023. Lending to Stable Resource Ratio as of 30 Sep 2023 stood at 60%, and the Non-Performing loan ratio improved to 7.7% from 9.5% as at the end of December 2022.

International credit rating agencies, Moody’s and Capital Intelligence, have affirmed the bank’s financial ratings as Stable. Moody’s has assigned National Bank of Umm Al Quwain (NBQ) a BCA (baseline credit assessment) of ba2.