Noor Bank records a net profit of Dhs595 million

Business Bureau, Gulf Today

Noor Bank recorded a net profit of Dhs595 million for the period ending Sept.30, 2019, driven by solid income growth and stringent cost management.

Noor Bank, one of the leading Shari’ah-compliant banks in the UAE recorded a 12 per cent increase in its net profit over the corresponding period last year.

The bank’s revenue increased six per cent year on year, with strong contributions from non-funded income, generated through diversified performance across business lines in accordance with 2019 growth plans. Continued discipline in expense management resulted in one per cent reduction over the corresponding period in 2018, leading to a substantial improvement in the cost-to-income ratio to 32.9 per cent.

Noor Bank achieved a 15.2 per cent annualised return on shareholders’ equity. Reinforcing the strong performance, customer financing was up by two per cent while customer deposits were maintained at September 2018 levels. The Bank’s balance sheet remained healthy with improving asset quality, and strong liquidity and capital ratios. The impaired financing ratio improved to 4.2 per cent, with provision coverage increasing to 165 per cent. Meanwhile, the capital adequacy ratio reached 17.4 per cent, and the common equity Tier 1 ratio stood at 11.7 per cent, a 1.3 per cent improvement during 2019.  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.