Net profit for the period ending June 30th was AED 85 million. The bank remains adequately capitalized with a capital adequacy ratio of 18.36 per cent.
H.H. Sheikh Ahmed bin Mohammed bin Rashid Al Maktoum, Chairman of Noor Islamic Bank said: “Our robust performance in the first half of this year is a direct result of the strategic initiatives and business model realignment that we have been undertaking within the bank over the past 18 months. Our efforts to focus our expertise on niche business opportunities are reflected in our earnings momentum.”
He added that “We will maintain a prudent approach in our growth strategy. The bank’s capital adequacy ratio remains robust at 18.36 per cent. We remain confident and positive about our future and are well positioned to continue to provide consistent performance, both financially and operationally, and to maximise opportunities as the economic situation improves.”
NIB’s improved results are underpinned by increased operating revenues and earnings stemming from the strategic consolidation drive adopted in 2010. Cost reductions were implemented with minimal impact on the bank’s overall business objectives and by continuously exercising disciplined risk management practices, the bank was able to deliver strong financial results.
Hussain Al Qemzi, Chief Executive Officer, Noor Islamic Bank and Group CEO Noor Investment Group said: “We have been able to realise strong operating results as a consequence of remaining focussed on executing against our stated strategy of playing to our strengths and leveraging on our areas of expertise, across the UAE and regionally.
The past six months of this year have shown steady growth in our net revenues of AED 386 million, whilst simultaneously generating an improvement of 7 per cent in our expense base against the same period last year.
Against an operating loss of AED 9 million at the end of the first half of 2010, he continued the SIB has realized an operating profit of AED 207 million and a net profit of AED 85 million. “We will continue to remain focussed on our fundamentals of capital and liquidity management whilst continuously identifying opportunities to optimise our costs in order to ensure we deliver sustainable results.”
“Our deposit base has grown by 40 per cent over same period in 2010, on a client base that has grown by 21 per cent. We will continue to invest in our core franchise proposition through enhancing our transactional and institutional banking, trade finance and wealth management capabilities”, Al Qemzi added.