Noor Islamic Bank profit jumps 54%

Noor Islamic Bank on Monday said its net profit rose Dh26.4 million, or 54 per cent, to Dh75.5 million in 2012 year-on-year.

Based on the significant progress made in 2012, the shareholders have underlined their confidence in the bank’s future performance, approving a capital injection of Dh150 million. Currently, Noor Islamic Bank’s capital adequacy ratio stands at 19.54 per cent, with the tier-1 ratio at 14.1 per cent.

Hussain Al Qemzi, Chief Executive Officer of Noor Islamic Bank and Group CEO Noor Investment Group, said: “In line with our strategic road map, building a healthy balance sheet and diversifying core revenue generation capabilities remain our key priorities.

“Following a second consecutive year of registering net profits, the capital injection reflects the shareholders’ confidence. It places the bank in a strong position to take advantage of the much improved economic situation in the UAE and growth opportunities in key emerging markets.”

In 2012, Noor’s liquid asset ratio rose to 27 per cent, marking a 13 per cent increase year-on-year.  The bank also saw its advances to deposit ratio fall by 17 per cent, to stand at 75 per cent and a growth of 18% in customer deposits. Overall, the bank’s balance sheet recorded a growth of 6.4 per cent, compared to 2011.

Streamlining remedial management and credit undertaking criteria, which are key priorities for Noor’s management, allowed Noor to improve its nonperforming loan (NPL) ratio by 7.6 per cent, compared with 2011. In addition, its NPL coverage ratio also improved by 16 per cent year-on-year. Provisions for the year amounted to Dh166 million, a 74 per cent decrease from last year, representing 1.4 per cent on gross advances of Dh11.8 billion.

Since its launch in 2008, Noor has gained a reputation for offering innovative, client-focused, banking products and services. It continues to lead the retail banking market in providing convenient banking solutions, including the UAE’s first fully operational mobile internet banking experience in the Arabic language. Noor was also the first Islamic bank to offer an on-line account opening service.

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