UAE - Mubasher: Noor Bank, a leading Shari’ah-compliant bank in the UAE, has reported a 12% year-on-year increase in net profit for the first nine months of 2019.
Net profit rose to AED 595 million during the nine-month period ended 30 September 2019, backed by strong income growth and strict cost management, according to a press release.
The bank’s revenue grew by 6% year-on-year during the January-September period of 2019, driven by solid contribution from non-funded income.
Moreover, the bank has recorded a 15.2% annualised return on shareholders’ equity, while customer financing increased by 2% with customer deposits were maintained at September 2018 levels.
Noor Bank’s balance sheet remained positive during the nine-month period ending 30 September 2019 with improving asset quality, and solid liquidity and capital ratios.
The bank’s impaired financing ratio has seen an improvement of 4.2%, with provision coverage growing to 165%.
John Iossifidis, CEO of Noor Bank, said: “Our strong returns against the backdrop of a challenging global environment are underpinned by our robust balance sheet and diversified performance across our businesses. Disciplined cost management and de-risking of certain parts of the business have significantly contributed to the surge in net profit with an improved cost-to-income ratio. The stable impaired financing ratio and high provision coverage are a testament to the enhanced quality of our financing book.”
“We have continued to make progress on our transformation agenda with an unwavering focus on digitisation and innovation. This has helped us deliver on our mandate of achieving outstanding customer experiences, thereby driving the positive business outcomes,” he added.
Furthermore, Noor Bank’s capital adequacy ratio hit 17.4% at the end of September, while the common equity Tier 1 ratio improved by 1.3% during 2019 to 11.7%.
