$13.6 million loss for NBF.Byline: news@cpifinancial.net (Staff Writer) National Bank of Fujairah, announcing its full year results for 2008 said it had achieved "strong growth" in its core businesses and maintained strong financial stability in the face of challenging market conditions. It claimed that core operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. growth of 33.4 per cent was achieved following continued focus on core businesses. Financial stability, it said, was underpinned by strengthening of the capital adequacy (Basel 1) ratio at 17.8 per cent and the advances to deposits ratio at 86.4 per cent. While the bank said it had seen consistent income growth in 2008 across all its core businesses, it admitted that global market conditions had a significant effect on the value of the bank's investment portfolio. The investment portfolio fair value decreased by AED AED - Automated Engineering Design 250 million ($68 million), of which AED 227 million ($61.7 million) was recognised in the profit and loss [2007: AED 70.3 million gain] and the remainder in equity. In response to continued uncertainty over macro economic conditions in the coming year, the bank said it has significantly reduced its exposure to market volatility. "Current market conditions also necessitate ne·ces·si·tate tr.v. ne·ces·si·tat·ed, ne·ces·si·tat·ing, ne·ces·si·tates 1. To make necessary or unavoidable. 2. To require or compel. a prudent approach to potential loan loss provision," Saleh Bin Mohammed Al Sharqi, the bank's Chairman said in a statement posted on the Bahrain Stock Exchange The Bahrain Stock Exchange (BSE), was established in 1987 by Amiri Decree No.(4) and officially commenced operations on June 17, 1989 with twenty-nine listed companies. Currently, there are 50 companies listed on the exchange. website. Provision policy for specific provision was brought forward to 90 days past due and a collective impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. provision of AED 45 million ($12.2 million) was secured in deteriorative credit conditions. The bank recorded a loss for the year of AED 50.3 million ($13.6 million) [2007: AED 323.8 million profit] as a result of investment fair value losses and prudent loan loss provisioning for the coming year, "hence no distribution to shareholders." The bank secured an increase in available funding, with a new syndicated loan Syndicated Loan A very large loan in which a group of banks work together to provide funds for one borrower. There is usually one lead bank that takes a small percentage of the loan and syndicates the rest to other banks. Notes: Also known as a "syndicated bank facility. facility of $210 million equivalent, being a $80 million increase on the previous facility, and a subordinated debt Subordinated Debt A loan (or security) that ranks below other loans (or securities) with regard to claims on assets or earnings. Also known as "junior security" or "subordinated loan". issuance of AED 400 million ($108.9 million). "These prudent measures, together with a continued focus on core businesses and enhanced risk management, ensure that the bank is financially strong and well placed to achieve continued and stable growth in the coming year," the Chairman said. "The bank's strategy going forward is to be a strong and efficient niche UAE (Uninterruptible Application Error) The name given to a crash in Windows 3.0. In subsequent versions of Windows, a crash was called a "General Protection Fault," "Application Error" or "Illegal Operation." See crash in Windows and abend. bank operating prudently in the local economy, focusing on the existing core areas of expertise, namely Corporate and Commercial Banking, Trade Finance and Treasury. The Retail Business will be selectively grown in line with the bank's diversification strategy. Technology and process re-engineering initiatives are at the core of our strategy which will ensure that the bank has strong operational capability to deliver growth in line with the aspirations of the shareholders and superior quality of service to our customers." 2009 CPI (1) (Characters Per Inch) The measurement of the density of characters per inch on tape or paper. A printer's CPI button switches character pitch. (2) (Counts Per I Financial. All rights reserved. Provided by Syndigate.info an Albawaba.com company |
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